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The document explains that Section 45Q provides performance-based tax credits to industrial facilities and power plants that capture CO2 for geological storage or utilization. It highlights Department of Energy (DOE) modeling suggesting these incentives could reduce power sector emissions by 50 to 70 million tonnes annually by 2030-2040 and argues that CO2-enhanced oil recovery (EOR) results in net emission reductions by displacing other crude oil sources.

The document analyzes the life cycle emissions of CO2-EOR, citing IEA data to show that using anthropogenic CO2 for oil recovery results in a net emissions reduction of 63% per barrel produced. It argues that EOR is a critical market-based driver for CCUS technology and that the oil targeted for EOR would likely be produced via other, more carbon-intensive methods if CO2-EOR is not used.

The document analyzes the financial incentives for reducing carbon emissions in the US, comparing the implicit price of CO2 avoided via the Section 45 production tax credit (PTC) for renewables against the explicit credits proposed in the FUTURE Act and Carbon Capture Act for carbon capture and storage (CCS). Using NREL data, it calculates that the renewable PTC provides an implicit incentive of $48.76 per tonne of CO2 avoided, while the proposed 45Q credits for saline storage and enhanced oil recovery (EOR) would provide lower incentives of $45 and $31.5 per tonne, respectively, assuming a 90% capture rate.

The Inflation Reduction Act (IRA) of 2022 significantly increases the 45Q tax credit, raising incentives to $85/tonne for industrial and power generation facilities and $180/tonne for direct air capture (DAC) when stored in saline geologic formations. These updates lower the capture thresholds for credit eligibility—reducing the industrial requirement from 100,000 to 12,500 tonnes of CO2 per year and the DAC requirement to 1,000 tonnes per year—while extending the construction window to January 1, 2033. The document argues that these incentives make carbon capture more accessible for hard-to-abate sectors like steel, cement, and refineries. Additionally, it recommends that Germany develop a National Carbon Management Strategy, financial incentives such as carbon contracts for difference (CCfD), and a business case for negative emission technologies to ensure industrial decarbonization and global competitiveness.

The US Inflation Reduction Act (IRA) has significantly increased 45Q tax credits for carbon capture and storage (CCS) and direct air capture (DAC), lowering entry thresholds for industrial emitters and extending project start dates to January 1, 2033. The document suggests Germany should adopt a national carbon management strategy, financial incentives like Carbon Contracts for Difference (CCfDs), and business models for negative emission technologies to support its industrial decarbonization.

The document argues that large-scale deployment of carbon capture and storage (CCS) is essential for the EU to reach climate neutrality by 2050, with estimates suggesting a need to capture between 490 and 600 million tonnes of CO2 annually by that date. It highlights that current deployment is significantly below the required trajectory due to inadequate policies and a lack of storage sites outside the North Sea. The brief advocates for the development of shared CO2 transport and storage 'hubs' and cross-border networks to reduce costs for industrial emitters, particularly in Southern, Central, and Eastern Europe. It specifically urges EU Member States to use the 2023-2024 NECP revision process to detail funding commitments, deployment targets, and storage capacity to align with the Net Zero Industry Act's target of 50 million tonnes of annual injection capacity by 2030.

The Porthos project is a pioneer CCS initiative designed to transport and store CO2 from the Port of Rotterdam in depleted gas fields under the North Sea. It is presented as a critical component for the Netherlands to meet its target of reducing CO2 emissions by 55% by 2030, as the industrial sector must reduce emissions by 60% in that timeframe. Porthos is expected to provide approximately 17% of the total intended industrial CO2 reduction for 2030 and address 11% of the Port of Rotterdam's emissions. The project's infrastructure is designed for a capacity of 10 Mt CO2 per year, with a projected total storage of 37 million tonnes over 15 years. However, the project's commencement depends on a final decision by the Raad van State regarding nitrogen emission impacts on Natura 2000 areas.

The document argues that CCS is essential for the European cement sector because approximately two-thirds of its emissions are process-related and cannot be eliminated by energy switches. While the EU is emerging as a leader with numerous planned large-scale projects funded by the Innovation Fund, challenges remain regarding energy requirements for capture and the dispersed location of plants relative to CO2 infrastructure. The briefing recommends carbon contracts for difference, low-carbon public procurement, and the development of an EU-wide CO2 transport network to accelerate the transition.

The document argues that CCS is essential for decarbonising hard-to-abate industrial sectors like cement and steel and for achieving net-negative emissions after 2050. It details the technical process of capturing CO2 using amines or membranes and storing it in saline aquifers or depleted reservoirs at depths exceeding 800 metres. The text asserts that geological storage is permanent and safe, with projected annual leak rates as low as 0.0002% in regulated industries. While costs vary by source—ranging from under 90 euro per tonne for fertilisers to 700 euro for direct air capture—the document suggests that government support for shared infrastructure can drive down costs, similar to the trajectory of offshore wind. It highlights approximately 100 proposed projects in Europe, particularly around the North Sea, and notes that the EU may need to capture 300 to 600 million tonnes of CO2 annually by 2050.

Austria aims for climate neutrality by 2040, necessitating CCS for 'hard-to-abate' industrial sectors, particularly iron and steel which account for 50% of industrial emissions. While a 2011 ban on geological CO2 storage exists, the government recommends lifting it by mid-2025. A 2024 feasibility study suggests a national CO2 pipeline network could be operational by 2034 with an estimated capital investment of €12–18 billion. Due to limited domestic storage capacity (estimated effective capacity of 118–275 Mt CO2), Austria will likely need to export captured CO2 to other countries.

The fact sheet outlines the role of carbon capture and storage (CCS) in decarbonizing Bulgaria's industrial sectors, particularly cement, chemicals, and refining. It highlights Bulgaria's high emission intensity in the EU and identifies significant geological storage potential, including the Pleven saline aquifer. The document details the ANRAV project as a pioneering CCS initiative in Eastern Europe and recommends the development of a comprehensive national carbon management strategy and the creation of low-carbon industrial clusters.

Bulgaria, the EU's most carbon-intensive economy, can use carbon capture and storage (CCS) to decarbonise its chemical, refinery, and cement sectors. While the country lacks a cohesive deployment strategy, it has a legal foundation via the EU CCS Directive and significant estimated storage capacity of 2.6 Gt. The ANRAV project, supported by a €190 million EU Innovation Fund grant, aims to be Eastern Europe's first full value chain CCS project, targeting a 95% emissions reduction from the Devnya Cement Plant by 2028.

Croatia's industrial sector emits 2.76 MtCO2/yr, with cement production accounting for 62% of these emissions. The country has an estimated storage capacity of 4.2 GtCO2, primarily in saline aquifers and depleted hydrocarbon fields, which is sufficient to store 693 years of its annual point source emissions. Current initiatives include the Croatia Geothermal CCS project, which plans to store CO2 from the Našice cement plant and a plant in Beremend, Hungary, in the Drava saline aquifer. Other projects in development at Petrokemija Kutina, the Sisak Biorefinery, and a cement facility in Koromacno could collectively capture and store 1.3 million tons of CO2 per year. The document recommends streamlining permitting, developing a comprehensive carbon management strategy, and investing in storage site characterization to leverage Croatia's capacity for domestic and international CO2 storage.

Croatia aims for a 45% emission reduction by 2030 and climate neutrality by 2050, with the industrial sector contributing 2.76 MtCO2/year (16% of national emissions). The document highlights that cement production, accounting for 62% of industrial emissions, has no viable decarbonization path other than CCS. Croatia possesses a significant storage capacity of 4.2 GtCO2, primarily in saline aquifers (4 Gt) and depleted hydrocarbon fields (175 Mt), which is sufficient to store 693 years of the country's annual point-source emissions. To optimize deployment, the document proposes three industrial clusters: the Adriatic, Central, and Eastern clusters. Current initiatives include the Croatian Geothermal CCS project, which plans to store CO2 from the Našice cement plant and a plant in Beremend, Hungary, at the Bočkovci-1 site. Other projects in development include Petrokemija Kutina (190,000 tCO2/year), Biorafinerija Sisak (55,000 tCO2/year), and a cement plant in Koromač (400,000 tCO2/year). Collectively, these could capture 1.3 million tonnes of CO2 annually. Economically, implementing CCS in the Eastern cluster could save 1.2 billion euros in EU Emissions Trading System (ETS) costs. The document recommends simplifying permitting processes, developing a comprehensive carbon management strategy, and investing in storage site characterization and cross-border cooperation.

France aims to capture 30-50 Mt of annual CO2 by 2050, focusing on seven key industrial clusters and leveraging a conservative estimated storage resource of 4.8 Gt. The government has launched a national CCUS strategy and provided €5.6 billion for industrial decarbonisation, including 'carbon contracts for difference' for specific CO2 streams. Key projects include the Dkarbonation and GOCO2 initiatives, which focus on export terminals and pipeline infrastructure for hard-to-abate sectors like cement and steel.

The document outlines Poland's position as the EU's third-largest greenhouse gas emitter and advocates for the deployment of carbon capture and storage (CCS) to decarbonize energy-intensive industries. It highlights Poland's significant geological storage potential, exceeding 15 Gt of CO2, and discusses specific projects like GO4ECOPLANET and ECO2CEE. The text emphasizes that developing domestic storage and transport infrastructure is critical to reducing costs and avoiding high EU ETS emission fees.

The document argues that carbon capture and storage (CCS) is a cost-effective solution for Portugal to reach carbon neutrality by 2045, particularly for hard-to-abate industries like cement and pulp and paper. It highlights a theoretical geological storage capacity of 7.09 GtCO2 and proposes the development of industrial clusters, specifically in the Lusitanian Basin, to scale the technology.

Romania aims for climate neutrality by 2050 and a net greenhouse gas emissions reduction of 85% by 2030 compared to 1990 levels. To achieve this, the country can leverage an estimated storage capacity of 22.6 Gt in saline aquifers and depleted hydrocarbon fields, which is sufficient to store nearly 330 years of combined point source emissions from Romania, Hungary, and Bulgaria. Industrial sectors currently emit 10 million tons of fossil CO2 per year (Mtpa), representing 38% of total CO2 emissions, with power and heat (12.81 MtCO2/yr) and cement and lime (5.80 MtCO2/yr) being the largest point sources. Modelling indicates Romania will need storage capacity of 10 million tonnes annually by 2035, increasing to 15 million tonnes by 2050. Analysis of 92 emitters shows that over 50% are located within 10 km of potential storage resources. Under the Net Zero Industry Act, Romania's major oil and gas producers may be required to develop over 10 Mt of annual injection-ready CO2 storage capacity by 2030. The document recommends the rapid development of a dedicated CCS strategy, robust storage assessments, and the creation of funding mechanisms such as carbon contracts for difference to reduce investor risk.

Spain has a significant CO2 storage potential of 12 to 44 Gt, which could accommodate 121 to 445 years of its annual point source emissions. While industrial point sources account for 49 MtCO2/yr (20% of national total), the Spanish Government has not yet provided specific plans for CCS deployment. The document highlights the Ebro Basin as a prime location where CCS could mitigate 4.42 MtCO2/yr by 2050 and create up to 104,900 jobs. To avoid competitive vulnerability as EU ETS prices rise, the report recommends a national carbon management strategy, streamlined permitting, and the development of low-carbon industrial clusters in regions such as the Ebro Basin, Vasco-Cantabrica Basin, and Huelva.

Spain has a significant geological storage potential of 12 to 44 Gt of CO2, which could support the decarbonization of hard-to-abate industrial sectors such as chemicals, steel, and refineries. While the government's Long-Term Decarbonization Strategy acknowledges the need for CCS in sectors like cement production, the document argues that a lack of concrete national plans and regulatory frameworks creates a competitive vulnerability for Spanish industry as EU Emission Trading System prices rise. A detailed case study of the Ebro Basin indicates that CCS deployment there could mitigate 4.42 MtCO2/year by 2050 and create over 100,000 jobs. The document recommends that Spain prioritize funding for pilot projects, clarify permitting responsibilities between national and regional governments, and develop a comprehensive national carbon management strategy to foster low-carbon industrial clusters.