New carbon capture and storage project announcements in Europe have dropped from a peak of 52 million tonnes of CO2 in 2021 to just 7 million tonnes in 2025, according to a report from the Institute for Energy Economics and Financial Analysis (IEEFA). The analysis shows that out of over 400 potential projects, cumulative proposed capture volumes stand at 201 MtCO2, but cancellations in 2025 highlight persistent economic and technical barriers. Blue hydrogen projects accounted for 71% of canceled capture volume, including BP's H2Teesside and Equinor's H2M Eemshaven, with weak hydrogen demand and funding uncertainty cited as reasons. IEEFA warns that the gap between CCS costs and EU ETS carbon prices means polluters lack incentive to invest without heavy state subsidies. Cross-border legal recognition for CO2 transport and storage between the EU and UK also remains unresolved. The report concludes that a near-term recovery in Europe's CCS pipeline is unlikely, raising questions about whether the technology can scale fast enough to meet regional decarbonization targets.
