The content in this preview is based on the last saved version of your email - any changes made to your email that have not been saved will not be shown in this preview.
Newsletter - March 2022
Foreword by the Coordinator
Dear reader,
 
What a year it has been for climate action in Europe! Despite the difficult circumstances created by the pandemic, 2021 saw strong momentum for the development of CCS and CCU with several announcements on investment and collaboration and an ever-increasing number of market-ready projects. The latter supported by positive results from the first Innovation Fund awards and four new EU Projects of Common Interest.
 
The Commission spearheaded several positive initiatives during the year, from the many proposals in the Fit-for-55 package in July to the Communication on Sustainable Carbon Cycles in December – recognising the role for CCS and CCU to reach the EU’s climate goals. Here, we should also highlight the positive result of the TEN-E revision – the crucial inclusion of CO2 storage in the regulation.
 
It is clear that this decade is crucial for Europe’s path to net zero GHG emissions – it is urgent to deploy, make the technologies investable, and scale up. In October, the CCUS SET-Plan published its CCUS Roadmap for 2030, presenting an overview of status and progress for the technologies today and identifying and stressing the actions that will be needed for the development and large-scale deployment of CCS and CCU in the 2020s, giving clear information to policymakers.
 
To ensure a just transition to achieve the EU 2030 target and be on track for climate-neutrality by 2050 through a common, coherent European approach, an EU strategy for CCS and CCU is urgently needed. This was also clearly expressed at the European Commission’s first high-level CCUS Forum in October.
 
Finally, looking at the challenges facing us, let us not forget the positive work that is being done. This calls for a celebration – join us at our CCUS SET-Plan conference on 1 April, that marks the end of the current grant and looks at the crucial continuation of the work.
 
Enjoy the reading, stay safe, visit our website and reach out if you want to engage in our activities. I look forward to seeing you at our conference on 1 April.
 
CCUS Set-Plan conference
Grant farewell and future perspectives - Friday, 1 April 2022 (online)
10:00 - 13:00 CET
IMPACTS9, the EU grant operationalising the CCUS SET-Plan, is coming to an end after three years of operation. Join us on the 1st of April and have a closer look on:
  • How the EU Commission is supporting the deployment of CCS and CCU with policies, and funding instruments
  • The progress attained by some flagship CCS and CCU projects in Europe
  • The main achievements of the CCUS SET-Plan and future perspectives
Draft agenda and registration form can be found here.

News
EU Commission and Breakthrough Energy Catalyst announce new partnership
The partnership aims to mobilise new investment in the area of €1 billion to support accelerated deployment of clean technologies. The first call for proposals has been announced in January 2022. Read more here
New partnership working to deploy large-scale Direct Air Capture in Norway
Carbon Removal, Carbon Engineering and Oxy Low Carbon announced a collaboration and conceptual design for a Norwegian DAC facility capturing more than 0.5 million tons of CO2 from the air. Read more here
Liquid Wind secures €15 million for production of e-methanol
Through the Initiative Climate Leap, the Swedish Environmental Protection Agency grants financial support to the FlagshipONE facility in the north of Sweden. The facility is expected to be operational in 2024 and produce 50 ktons of CO2-based methanol from renewable energy. Read more here
UK announces first CCUS clusters
In October, the UK Government announced the results of the first phase of the CCUS Cluster Sequencing Competition. The successful clusters are the East Coast Cluster and they HyNet North West. Read more here
Launch of the Aramis CCS project
TotalEnergies, Shell Netherlands, EBN and Gasunie have formed a partnership for the official launch of ARAMIS, a full chain CCS project with a CO2 collection hub at the port of Rotterdam and an offshore transport pipeline for CO2 storage in the North Sea. Read more here
Climeworks begins operations of Orca, the world’s largest direct air capture and CO₂ storage plant
In September 2021, the first DACCS project started operation in Iceland. Climeworks together with Carbon and On Power operate this First-Of-A-Kind facility allowing permanent sequestration of 4.000 tons of CO2 annually. Read more here
Maersk secures green e-methanol for first container vessel operating on carbon neutral fuel
Maersk joins forces with REintegrate and European Energy to produce 10.000 tons of e-methanol from renewable energy and biogenic CO2 to fuel the first of the eight vessels planned to run on e-methanol. Read more here
Consortium agrees to back Greensand, carbon storage pilot project
Greensand was initiated in June 2021 and gathers companies and research entities aiming to establish a full value chain for CCS in Denmark by 2025. The project focuses on offshore transportation and storage, and collaborates with partners, who focus on onshore capture, transportation and port bunkering. Read more here
Insurance actors invest in carbon removals
Climeworks and Swiss Re signed a 10-year purchase agreement for DAC and CO2 storage (read here). Earlier this year Munich Re and ERGO have invested invest in EIT Climate-KIC carbon removal programme to accelerate start-up solutions (read here).
New resource for LCA and TEA of CCUS technologies
AccessCCUS, the new platform developed by the International CCU Assessment Harmonisation Group, gathers resources for life cycle and techno-economic assessment of CCUS technologies. Read more here
Investment in climate-neutral methanol production supported by the Swedish Energy Agency
A consortium comprised by Perstorp, Fortum and Uniper received support (approx. 29 M€) for a plant to produce climate-neutral methanol from CO2 and reduce emissions along the value chain by approximately 500 ktons per year. Read more here
Ørsted plans carbon capture at Avedøre Power Station as part of the Green Fuels for Denmark project
Ørsted has identified the 100 MW straw-fired unit at the Avedøre Power Station in Copenhagen as the best point source of sustainable CO2 for the next phases of the Green Fuels for Denmark Power-to-X facility in the Greater Copenhagen area. Read more here
Drax and MHI sign deal towards delivery of the world’s largest negative emissions project
The agreement aims at bringing BECCS technology closer to operationalization by using the capture technology of MHI at the biomass power plants of Drax in the UK. The first BECCS unit could be operational as of 2027. Read more here
A methanol-powered tugboat in the Port of Antwerp
The Port of Antwerp is converting a tug to methanol propulsion. The ‘methatug’ is part of the European Union-funded Fastwater project, which aims to demonstrate the feasibility of methanol as a sustainable marine fuel. The methatug is expected to be operational early 2022. Read more here
thyssenkrupp Steel, HKM and Port of Rotterdam jointly investigate setting up hydrogen supply chains
The partners will explore hydrogen import opportunities via Rotterdam and possible pipeline corridor between Rotterdam and the steelmakers’ sites in Duisburg. Such partnerships highlight the important role that cross-border hydrogen infrastructure will play in decarbonizing heavy industries. Read more here
Climeworks and Northern Lights to jointly explore direct air capture and CO2 storage in Norway
The companies have agreed to explore the development of a full chain CO2 capture and storage project in Norway to demonstrate carbon removal. Read more here.
Major Copenhagen energy utility companies form C4 consortium
The parties of the Copenhagen Carbon Capture Consortium (C4) have joined forces to examine and realise the vision of capturing, storing or using large amounts of CO2 in the Copenhagen Metropolitan area. CO2 reductions of more than 3 million tons can be achieved within the territory. Read more here
LEILAC2 pilot plant to be located in Hannover
Following good results from the first phase of the LEILAC project, HeidelbergCement’s plant in Hannover will host the new carbon capture demo installation that can capture up to 100.000 tons of CO2 per year and start operations by the end of 2023. Read more here
The Longship White Paper is available in English
The White Paper submitted by the Norwegian Government to the Norwegian Parliament for the approval of the flagship Carbon Capture & Storage project “Longship” is now available in English. The project was approved late December 2020. Read more here

Progress on work streams
CCUS Roadmap 2030
CCS and CCU technologies are among the low-carbon technologies promoted by the European SET-Plan and recognised as relevant solutions to meet the objective of climate neutrality by 2050. With the European Green Deal and European Climate Law, the EU has increased its climate ambitions and formalised its support for the target of climate neutrality by 2050 and an increased 2030 emissions reduction target of at least 55% compared to 1990 levels by 2030 within the EU.
The strongly increased EU ambition for GHG emissions reduction by 2030 will make the role of CCS and CCU even more important. To reach the climate targets in a cost-efficient way, this decade will be crucial: to support early deployment, establish the foundation for CCS and CCU as investible technologies and maturing the technologies at scale.
The CCUS SET-Plan Implementation Plan 2030 targets have been assessed and updated in line with the EU climate targets for 2030 and 2050. The updated targets have been endorsed by the IWG9 Plenary and presented for approval to the SET Plan Steering Group.
Based on the endorsed targets, the CCUS Roadmap 2030 is aimed to give as clear as possible information to the policymakers at EU and Member-state levels as well as projects, companies, and the finance community on what will be needed to reach these targets.
  • The role of CCS and CCU for a just and cost-efficient climate transition – delivering decarbonisation for Europe, safeguarding industrial competitiveness and welfare, creating new jobs while preserving existing ones and delivering climate benefits.
  • What will be needed to reach the CCS and CCU targets for 2030 and to set the trajectory towards 2050, referring to policy frameworks, business models, R&D&I needs, enablers and barriers to tackle.
  • Showcasing Europe as a global leader on low-carbon technologies and just transition.
  • A clear action plan for policymakers.
Recommendations to deliver CCUS SET-Plan R&I activities
A series of deliverables/recommendations to deliver the CCUS SET-Plan R&I activities and reach the revised targets of the CCUS SET-Plan for the entire value chain of CO2 capture, storage and utilisation will be delivered by the consortium early 2022. These deliverables look at the different segments of the CCUS value chain and explain the status of development and suggest actions to ensure an accelerated deployment of CCUS in Europe. They have formed the input basis for the development of the CCUS Roadmap 2030. 
SET-Plan Conference
Co-chairs William Christensen and Graeme Sweeney represented the IWG9 at the 2021 SET-Plan conference, which took place in November in Bled, Slovenia. IWG9 has prepared a snapshot video featuring the three IWG9 Co-chairs and showcasing the success stories of the IWG. The updated targets, as well as the narrative and ongoing work, were also highlighted in the video. The video was shown during the SET-Plan conference. The success stories were identified on the basis of the 2021 monitoring and reporting exercise.
Input on SETIS Annual Report
The IWG9 gave input to the SETIS Annual Report for 2021. The SET-Plan Secretariat also asked all IWGs for short snapshot videos – to be presented at the SET-Plan conference – of the IWGs work with a focus on the ongoing work and real-life, success stories. 

Events & CCUS SET-Plan Representation 
CCUS 2021 
The CCSA’s annual conference, CCUS 2021: Leading on net zero and clean growth, took place on the 12th-14th of October 2021. The conference brought together a range of delegates from across the CCUS sector, including policymakers, industry representatives, CCUS developers, technology providers, local authorities, and others. CCSA released its new CCUS animation, which can be viewed here. This animation introduces CCUS, its applications, and its vital role in contributing to net zero across the economy. The Conference included sessions on the role of CCUS in the net zero transition in the UK, European, and international contexts, as well as technical sessions about public perceptions on CCUS, deep dives into negative emissions technologies, discussions on R&D in CCUS, carbon capture as a service, and hydrogen.
5th CO2 Value Day
CO2 Value Europe’s annual event took place on the 25th and 26th of November at the port of Dunkirk. During the two days, the current status of CCU in the European context was reviewed along with the progress in the development of the CCU industry. Participants heard also about the progress of selected EU-funded projects on CCU, the views of the European Parliament on the importance of CCU in reaching climate goals and on the necessity to create a European CCU Roadmap. Participants were also able to visit the industrial complex of Dunkirk, where CCU projects are being planned and implemented.
R&I Opportunities for a fossil-free Europe
On the 29th of April 2021, CO2 Value Europe co-organised in the frame of the CCUS SET-Plan and with the support of SUNERGY a funding and brokerage event entitled: “R&I Opportunities for a fossil-free Europe”. Various funding opportunities were presented, including the relevant topics of Horizon Europe, the European Innovation Council, the Innovation Fund. Participants had the opportunity to pitch project proposals and e-meet to build project consortia.
CCUS SET-Plan at SET-Plan IWGs working seminar
IWGs that have updated their targets and/or Implementation Plans were invited to join a working seminar, organised by the SET-Plan secretariat, on 21 October 2021. Co-chairs Graeme Sweeney and William Christensen were in attendance and provided an update on behalf of the IWG9.
COP26
The CCUS Roadmap for 2030 was disseminated in EU side events during COP 26.
Co-chair Graeme Sweeney spoke at an EU Pavilion side event titled “Policy, business, and social challenges for carbon dioxide removals and carbon capture & storage” on the 1st of November 2021 at COP26 (recording available here). The focus of the event was on Carbon Capture and Storage (CCS) and Carbon Dioxide Removal (CDR), both critical on the path to climate neutrality. Expert speakers from research and industry contributed to the discussion, which explored potential for CCS and CDR in various sectors and discussed the social aspects, policies and business cases needed to scale up these technologies while managing risks. Co-chair Graeme Sweeney emphasised the importance of CCS in the context of a just transition and the need to include cross-border CO2 transport (including all modalities) and storage infrastructure in the EU legislation (e.g., TEN-E).
BGS was also present at COP26 and further disseminated the Roadmap. The side event “Accelerating along the transformative pathway to Net-Zero with large-scale carbon dioxide removal and storage” took place on the 6th of November 2021. The event discussed the rapid and transformative action needed to achieve net-zero GHG emissions, as well as the role of large-scale CO2 removal and storage for decarbonisation.
CCUS Forum
On the 11th of October 2011, the European Commission organised the first high level Forum on CCUS. The Forum stems from the Energy System Integration Strategy and the recognition of the role CCUS can play in the future clean energy systems. The Forum gathered many high-level experts along the CCUS value chain and hosted very interesting sessions on the development and role of CCUS in the transition to a sustainable economy. Per-Olof Granström, coordinator of the IMPACTS9/CCUS SET-Plan project and EU Director at the Zero Emissions Platform chaired a session on decarbonizing the industry. The Forum is expected to play an important role in designing the future EU CCUS strategy.

Further events
The CCUS SET-Plan was also disseminated and represented by consortium members in other events, indicatively:
  • EU Industry days 2022, “An EU strategy for CCS and CCU: Safeguarding European industrial competitiveness” 9 February 2022, online
  • Greener Manufacturing Show, 10 November 2021, Cologne, Germany
  • NCCS Consortium days, 10 November 2021, Trondheim, Norwa
  • Zero Emissions Platform, “Policy, business, and social challenges for carbon dioxide removals and carbon capture & storage”, 1 November 2021
  • 17th Carbon Dioxide Utilisation Summit, 27 October 2021, Brussels Belgium
  • EU Sustainable Energy days 2021, “Paving the way for decarbonised industry with Carbon Capture and Storage”, 26 October 2021
  • Carbon Capture Technology & Expo Europe, 20 October 2021, Bremen, Germany
  • CCUS 2021 Conference 12–14 October 2021, online
  • CCUS Forum, 11 October, online
  • CINEA workshop on CCUS & Alternative fuels projects, 23-24 September 23-24, online
  • Zero Emissions Platform Conference 2021, 22 September 2021, online
  • UKCCSRC Conference – Delivering on COP26 - CCS across the world, 7 September, online
  • Geodays, 24 June, online
  • eCOCO2 webinar, “From CO2 into fuels: A scientific, industrial, social and political perspective”, 8 June 2021, online
  • Carbon Pricing Conference, “Funding CCUS”, 3 June 2021, online
  • EU Green Week, “Supporting Europe’s 2050 climate targets through Carbon Capture and Storage”, 2 June 2021, online
  • ECCELERATE webinar, “Sustainable CCU technologies relevant for Europe and ECCSEL”, 28 April 2021, online
  • Zero Emissions Platform, “Cross-border, European CO2 transport and storage infrastructure: A real enabler for European decarbonisation”, 23 March 2021, online
  • Zero Emissions Platform, “Europe needs robust accounting for Carbon Dioxide Removal”, 10 March 2021, online
  • EU Industry days 2021, “Key CCUS projects delivering industrial decarbonisation” 24 February 2021, online
  • EU Industry days 2021, “The future of CCU deployment: A national and European perspective” 23 February 2021, online
Policy update
EU Taxonomy for Sustainable Finance
The Commission adopted the Delegated Regulation on climate mitigation and adaptation on 4 June 2021 and it was approved on 9 December 2021 and published in the EU Official Journal. While CCS is included as an economic activity, CCU is referred to a review due in three years. The European Taxonomy Complementary Delegated Act, that includes natural gas and nuclear, was adopted by the Commission on January 2022. Further Delegated Act, referring to other environmental objectives, such as water resources, circular economy, pollution prevention, and biodiversity, is currently under preparation.
Innovation Fund
The European Union is investing over €1.1 billion into seven large-scale innovative projects under the Innovation Fund. It is one of the world's largest programmes for the demonstration of innovative low-carbon technologies, financed by revenues from the auction of emission allowances from the EU's Emissions Trading System. The funded projects are located in Belgium, Italy, Finland, France, the Netherlands, Norway, Spain and Sweden and the majority of them include a CCUS element. The Commission has launched the second call for large-scale projects with a deadline on the 3rd of March. The Innovation Fund is expected to unlock around €25 billion over the period 2021-2030 (based on a carbon price of €50/tCO2).
Fit-for-55 package
In July 2021, the European Commission published the ‘Fit-for-55’ package, with the aim to support the EU’s trajectory towards a target of -55% GHG emission by 2030. A series of proposals within the package will influence the deployment of CCUS technologies. Below are some of them:

Revision of the Emissions Trading Scheme (ETS)
The proposed ETS revision contains the following basic elements:
  • CCU should be included for applications where CO2 is stored in a manner intended to be permanent.
  • Avoidance of double counting of emissions released from CCU fuels that have been originally produced by emissions from ETS installations.
  • All modalities – shipping – for CO2 transport are included.
  • The Commission did not propose to include the capture of biogenic CO2 in the ETS – thus, there are still no incentives in the EU ETS for carbon dioxide removals.
  • Inclusion of carbon contract for difference (CCfD) in the design of the Innovation Fund.

Revision of the Renewable Energy Directive
The proposed revision contains the following basic elements:
  • Increase of the share of RFNBO in the energy supplied in the transport sector.
  • Half of the hydrogen use in industry to be covered by RFNBO.
  • Development of the Union Database for the reporting of renewable fuels.
The delegated acts on the rules to access renewable electricity for RFNBO producers and on the methodologies for the calculation of GHG emission reductions for RFNBO are still pending.

ReFuel EU Aviation & Fuel EU Maritime
The basic elements of those new proposals the following:
  • In aviation we see the introduction of specific quotas for the share of synthetic aviation fuels (i.e., CCU fuels) in the fuels supplied to the airports.
  • In maritime transport, we see the setting of GHG emission reduction targets and the recognition of CCU fuels (among other options) as a fuel option that can help reach the target.
Sustainable Carbon Cycles
The European Commission released a communication on ‘Restoring Sustainable Carbon Cycles’ in December 2021, the first communication that focuses only on the role of CCU, CCS and CDR in achieving EU’s climate goals. While the Communication is not a legislative document, it clarifies the timeline for the upcoming legislative initiatives on Carbon Dioxide Removals (CDR) for 2022. Key elements of the communication of relevance for CCS, CCU, and CO2 infrastructure are highlighted below.
  • The focus of the Communication is on nature-based and technology-based solutions. CCS and CCU, DACCS and BECCS are highlighted among the technological solutions.
  • The Commission clarifies that by 2028, removed CO2 that will be captured, transported, used, and stored by industries should be reported and accounted by its origin (fossil, biogenic or atmospheric). Criteria such as the duration of the storage and the risk of reversal will also be considered when developing the certification framework.
  • Strong emphasis on CO2 infrastructure development as a key enabler for the upscale of industrial CDRs – the focus is on the creation of ‘CCUS hubs’, where many CO2 emitters can benefit from a common infrastructure. The development of cross-border CO2 infrastructure should be carried out in line with the Directive for geological storage of CO2 (also referred to as ‘CCS Directive’). The Commission sees the CO2 infrastructure as ‘open-access and cross-border transport network for CO2’ to ensure competition between different transport and storage operators.
  • 5Mt of CO2 should be annually removed from the atmosphere and permanently stored through frontrunner projects by 2030.
Timeline and key actions
  • A Commission proposal on certification for carbon removals will be presented in Q4 2022.
  • The guidance documents for the Directive on geological storage of CO2 covering risk management, monitoring, and financing will be updated.
  • A call for Evidence to strengthen the Commission’s understanding of carbon removals and key issues for their accounting and certification will be published in early 2022.
  • Launch of a study on the development of the CO2 transport networks.
Revision of the TEN-E regulation
The European Parliament and the Council reached a provisional agreement during inter-institutional (trilogue) negotiations on the proposal for a Regulation on the Trans-European Energy Network (TEN-E) guidelines on 14 December 2021. The key points for the category of CO2 infrastructure are:
  • CO2 storage is included in the regulation. CO2 storage will also be included for infrastructure developed between an EU member state and a non-EU country, which could receive the status of Projects of Mutual Interest (PMI).
  • CO2 transport modalities other than pipeline – such as ship, train, truck, barge – is included for recognition and studies in the regulation but not for funding
  • CO2 transport for utilisation will be allowed, given that the utilisation is ‘with a view to permanent neutralisation’ of the CO2. The sustainability of utilisation will be checked against the sustainability criteria included in the regulation.
  • There will be general sustainability criteria in the Regulation, however, it will not include a specific capture rate for industrial installations.
  • The focus of CO2 infrastructure will be on industrial CCS installations, not power installations.
Project of Common Interest
A 5th PCI list has been adopted by the Commission on 19 November. The European Parliament and the Council have two months to examine the measure. This period can be extended by two months. If within this timeframe neither the Parliament nor the Council rejects the list, it will enter into force.
Hydrogen and decarbonised gas package
On the 15th of December, the European Commission presented two legislative proposals (a Regulation and a Directive) to decarbonise the European gas market and energy system by facilitating the uptake of renewable and low-carbon gases, including hydrogen. These proposals are commonly referred to as the ‘Hydrogen and gas package’. The package does not mention CO2 infrastructure. For CCS/CCU, the only reference made is to the their role in abating the remaining emissions from fossil gas, which according to the Commission’s text will represent one-third of the gaseous fuels in the 2050 energy mix; this is based on the relevant scenarios used by the Climate Target Plan Impact Assessment. The package recognises the role of low-carbon hydrogen in the short and medium term (until 2030) to reduce emissions from existing hydrogen production and to support the uptake of renewable hydrogen in parallel.

Save the dates
The IMPACTS9/CCUS SET-Plan closing conference will take place on the 1st of April 2022, along with the IWG9 Plenary. Stay tuned to register at: https://www.ccus-setplan.eu/ 
Other important events:

The CCUS SET-Plan and the IMPACTS9 project
The European Strategic Energy Plan (SET-Plan) recognises Carbon Capture, Utilisation and Storage (CCUS) as one of the priorities towards climate-neutral energy systems. An Implementation Plan laying down specific targets for CCUS deployment by 2020 and associated R&I priorities for 2020 and 2030 has been developed and the Implementation Working Group (IWG9) has been mandated to follow-up the progress. To assist IWG9 with this work, the H2020 project IMPACTS9 has secured funding for three years, starting May 2019. IMPACTS9 is therefore the operational arm of IWG9 and organises a series of activities to reach the targets of the CCUS SET-Plan and accelerate deployment of CCUS technologies.
The team
  • Per-Olof Granström, EU Director
  • Murillo Salvador, Communications & Events Officer
  • Jonathan Pearce, Principle Geochemist
  • Karen Kirk, Geologist
  • Marie Bysveen, Vice President Research
  • Luca Riboldi, Research Scientist
  • Øyvind Langørgen, Research Scientist
  • Anastasios Perimenis, Secretary General
  • Lara Tottolo, Communications & Events Manager
  • Françoise Maon, Association Manager