How CCS is Revolutionizing the Energy Transition: Projects, Technologies, and the Role of Eni and Other Industry Leaders

by Marco Arezio

The business of carbon capture and storage (CCS) represents one of the most advanced and promising technologies in the fight against climate change. Increasing regulatory and societal pressures to reduce CO₂ emissions have driven governments, companies, and financial institutions to invest heavily in these innovative solutions. According to projections, the global CCS market is expected to exceed €50 billion by 2030. In this context, Europe is emerging as a hub for technological development and implementation, thanks to pioneering projects and public-private partnerships aimed at integrating CCS into long-term decarbonization strategies.

How CCS Services Work

CCS technology is based on three main phases: capturing, transporting, and storing CO₂.

CO₂ Capture

Capture occurs primarily at industrial facilities and power plants, where CO₂ is separated from other emitted gases. The main techniques include:

- Post-combustion capture: separation of CO₂ from industrial flue gases.

- Pre-combustion capture: removal of carbon before combustion.

- Direct Air Capture (DAC): direct capture of CO₂ from the air using chemical filters.

Technologies developed by companies like Climeworks and Carbon Engineering are accelerating the efficiency and scalability of direct air carbon capture.

CO₂ Transportation

Once captured, CO₂ is compressed and transported via pipelines or ships to storage sites. Infrastructure networks are essential for connecting emission sources to storage facilities. Projects like Northern Lights, developed by Equinor, TotalEnergies, and Shell, envision a cross-border network to safely manage the transport of captured CO₂ across European countries. This approach helps reduce overall costs and optimize the use of existing infrastructure.

CO₂ Storage

CO₂ is injected into deep geological formations, such as depleted oil and gas fields or saline aquifers. These natural formations are chosen for their impermeability, which prevents gas leakage once stored. Before injection, detailed geological characterization studies are conducted using techniques such as 3D seismic imaging and laboratory analyses of rock samples to ensure the site is suitable and safe. Once injected, CO₂ is subjected to high pressures that promote its mineralization over time, a natural process that contributes to its stability. Continuous monitoring with geophysical and chemical sensors, integrated with satellite systems, ensures no leaks occur and the gas remains securely trapped for hundreds or thousands of years.

In addition to capture and storage, some players offer integrated services, such as emissions monitoring and consulting to improve industrial process efficiency. This holistic approach is making the sector increasingly attractive to companies seeking to reduce their carbon footprint.

Key Players in Europe

In Europe, the CCS market involves major energy companies, innovative startups, and public institutions. Among the key players are:

Equinor: The Norwegian company is a leader in CCS projects, with initiatives like Northern Lights, aimed at creating a European infrastructure for CO₂ storage.

Shell: Involved in projects such as Porthos in the Netherlands, Shell is investing heavily in capture and storage technologies to support the energy transition.

TotalEnergies: Active in CCS projects in France and the UK, TotalEnergies aims to integrate these technologies into its industrial operations.

Eni: Through the Plenitude and Enilive projects, Eni is developing advanced CCS solutions to reduce emissions in oil and industrial operations, with a focus on storage sites in the Adriatic Sea.

Technology startups: Companies like Climeworks (Switzerland) are developing direct air capture (DAC) solutions, capturing CO₂ directly from the air.

Public institutions also play a crucial role. The European Commission has financed several CCS projects through the Innovation Fund and the Horizon Europe program, fostering the development of new technologies.

How Economically Sustainable is CCS?

The economic sustainability of carbon capture and storage (CCS) is at the center of many debates. While CCS technologies represent an effective response to the climate crisis, they come with high costs. However, the integration of these solutions into the business models of large energy and industrial companies demonstrates their economic potential.

Performance of Companies Involved

Companies operating in the CCS sector are experiencing significant growth, driven by the rising demand for decarbonization solutions and government incentives. For example:

Equinor has reported increased investments in CCS projects, with a growing percentage of its budget allocated to sustainable technologies. Its pioneering projects, such as Northern Lights, have attracted both public and private funding.

Shell is developing an integrated CCS strategy, combining CO₂ transportation and storage with industrial process optimization. The Porthos project in the Netherlands has already secured long-term contracts with major European companies.

Eni, through Plenitude and Enilive, is diversifying its portfolio to include CCS solutions, achieving a competitive position in the European market. The company has also begun exploring CO₂ utilization for producing new industrial materials.

Climeworks, despite being a startup, has demonstrated that direct air capture can become profitable through partnerships with companies seeking to offset their emissions.

Emerging Business Models

Companies involved in CCS are adopting innovative business models to enhance the economic sustainability of this sector:

Long-term contracts: Companies like Shell and Equinor offer multi-year contracts to their clients, ensuring a steady revenue stream and mitigating risks associated with high initial investments.

Public-private partnerships: Governments provide initial funding and tax incentives to reduce costs, while companies contribute the technical expertise and infrastructure required.

Growth Potential and Challenges

While the CCS sector offers great opportunities, it still faces some challenges. Among them are the high costs of the technologies and the need for a stable and supportive regulatory framework. However, the growth potential is enormous, thanks to:

Increases in carbon taxes: The introduction of CO₂ emissions taxes is pushing many companies to invest in CCS to avoid additional costs.

Political support: European governments are introducing tax incentives and direct funding to accelerate CCS adoption.

Technological innovation: Startups are developing more cost-effective and efficient technologies, making CCS accessible to a growing number of companies.

New commercial opportunities: The utilization of captured CO₂ (CCU, Carbon Capture and Utilization) in sectors such as synthetic fuel production and building materials is opening new markets.

In addition, combining CCS with technologies like green or blue hydrogen could create synergies that further accelerate the decarbonization of the European economy.

Conclusions

The carbon capture and storage sector represents one of the most promising frontiers in the fight against climate change. With major players such as Eni, Equinor, and Shell, supported by innovative startups, Europe is in a strategic position to lead this transition. While challenges remain, growing investments and technological innovation are transforming CCS into a cornerstone for achieving carbon neutrality by 2050.

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