A new Wood Mackenzie study finds the European Union will fall 35% short of its 2030 carbon storage target of 50 million tons per annum (mtpa), even in a best-case scenario. The analysis, commissioned by ExxonMobil, OMV Petrom, Shell, and TotalEnergies, reveals that less than 6% of the required storage capacity is operational or under construction. The core problem is a fragmented value chain: the Net Zero Industry Act mandates storage capacity but leaves capture and transport to develop on their own, creating a mismatch that delays final investment decisions. Project delays averaging 1.5 years and a lack of pipeline connections mean roughly 11 mtpa of planned capture capacity risks becoming stranded. Current EU ETS prices are too low to cover the levelized cost of CCS for projects nearing final investment. The report urges policymakers to treat capture, transport, and storage as a single integrated system, not separate industries, to avoid widespread asset stranding and meet the 2030 target.
