CCS has long been considered politically sensitive and technologically “nice to have.” New laws, EU regulations and billion-dollar investment programs are now making it central to the European decarbonization strategy. We believe that few topics will become as relevant in 2026 as CCS.
Reasons for a CCS comeback
One: The EU makes CCS mandatory
By 2030, 50 million tons of CO₂ must be injectable annually across Europe and 250 million tons are expected by 2040. Oil and gas producers have already been required by the Net Zero Industry Act to help develop storage facilities. This creates predictability and sends investment signals.
Two: Germany opens the door
On November 28, 2025, the amendment to the Carbon Dioxide Storage Act came into force. With lead times of 7–10 years for transport and storage, the use of CCS is now possible beyond the previous research framework, but also necessitates early FIDs and accelerated approvals.
Three: Power plant strategy generates demand
8–10 GW of new H2-compatible gas-fired power plants are to be connected to the grid by the early 2030s. Technology-neutral tenders and a capacity mechanism increase the pressure to secure residual fossil emissions: via H2 conversion, blue hydrogen or post-combustion CCS.
Four: Industry sends clear signals
EU innovation funds and large-scale CO2 storage projects in Northern Europe (e.g., Northern Lights or Greensand) strengthen the business case. This reduces logistics and acceptance risks for German emitters with cross-border transport.
Five: Support programs create economic viability
For the first time, Germany is systematically supporting CCS through long-term contracts, auctions and an industry-oriented funding logic. This makes the business case calculable and realistically investable.
What does this mean for start-ups?
The market is opening up along the entire value chain: from CO2 capture and monitoring to digital infrastructure for transport and storage.
A window of innovation with market niches is emerging!
In our new series “Hydrogen Trends,” we show how technologies, markets and regulations will be realigned in the coming year – and what opportunities this will create for the H2 ecosystem.
Interested in deeper insights?
Get in touch with Alessandro Benassi.