EMISSIONS
Europe is eying several key CCUS projects expected to reach FID in 2025, with initiatives in the UK, Netherlands, Norway and Germany. Meanwhile, green steel agreements, particularly driven by the automotive sector, are set to jump 50% in 2025, according to data from BNEF.
- However, the pace at which these projects reach FID is contingent on avoiding unexpected delays from permitting or regulatory challenges.
- Europe aims to propose about 107 mn/t per year of CCUS by 2030, with an estimated 42 mn/t per year expected to be operational by the end of the decade, assuming timely FID within the next 2-3 years.
- The strong growth is due to increasing government support at both EU and member state levels, alongside rising carbon prices affecting heavy industrial sectors.
- The UK has committed £22bn to develop multiple CCUS projects, with initial successes seen in reaching financial close for some facilities.
- And projects such as LanzaTech and Eramet’s CCUS facility in Norway, and the Aramis project in the Netherlands, are also expected to advance to FID in 2025.
- Additionally, green steel offtake agreements are projected to rise to a total of 220 deals in 2025 from 146 recorded in October 2024.
- EU automakers, particularly Mercedes-Benz, BMW, and Volkswagen, are at the forefront of green steel adoption, signing procurement deals to decarbonise operations.
But rising emissions compliance costs and sluggish vehicle demand could dampen new agreements in the automotive sector.
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