Introduction
Global carbon emissions have reached an all-time high in 2024, totalling 37.4 billion tonnes of CO2, a 0.8% increase from 2023 (Global Carbon Budget). This escalating figure threatens to push the world toward catastrophic climate change, with emissions projected to rise another 16% by 2030 without significant intervention (IPCC). The International Energy Agency (IEA) warns that to meet the Paris Agreement’s 2050 target, emissions must be cut by 43% by the decade’s end. Achieving this ambitious target requires a global effort and the widespread adoption of sustainable technologies.
At the forefront of this fight against climate change is Carbon Capture, Utilisation, and Storage (CCUS), a transformative technology that captures CO2 emissions at their source and either stores them or repurposes them into valuable products. The Northern Lights facility off Norway’s coast exemplifies how CCUS can decarbonise industries and support the transition to net-zero emissions.
What is CCUS technology?
CCUS technology captures carbon emissions directly from industrial plants, power generation facilities, and refineries, preventing them from entering the atmosphere (IEA). Once captured, CO2 can be safely stored underground in disused mine cavities or saline aquifers, or it can be utilised to produce beneficial products such as fertilisers or synthetic fuels (Econic Technologies). For sectors such as steel, cement, aviation, and chemicals—often referred to as “hard-to-abate” industries—CCUS is crucial. These sectors are experiencing growing demand, especially in rapidly industrialising regions like India, Africa, and South America (IEA). By adopting CCUS, these industries can meet increasingly stringent emissions regulations, including the European Union’s Carbon Border Adjustment Mechanism (CBAM), a tax on carbon emissions embedded in imported goods.
CCUS technology is particularly transformative for carbon-intensive sectors like cement and steel manufacturing, where emissions are inherent to the production process (IEA). For these industries, CCUS offers one of the few viable pathways to significant emissions reductions without overhauling operational frameworks. In cement production, where CO2 emissions are a byproduct of both energy use and the chemical process of limestone decomposition, CCUS is already proving effective. Heidelberg Materials’ Brevik facility in Norway captures approximately 400,000 tonnes of CO2 annually—about 50% of the plant’s emissions—using a two-step capture process. Exhaust gases pass through a solid particle removal system and then through an amine-based absorption process where CO2 is captured using a chemical solvent. The captured CO2 is then liquefied and stored through the Northern Lights network (Heidelberg Materials).
In the steel sector, ArcelorMittal is pioneering multiple CCUS methods. At their Hamburg plant, they employ pressure swing adsorption (PSA) technology, which separates CO2 from blast furnace gases with up to 95% efficiency. Meanwhile, their Dunkirk facility is developing a cryogenic carbon capture system, which freezes CO2 from exhaust gases into solid form for easier transport and storage (ArcelorMittal). These technologies allow steelmakers to capture CO2 while maintaining their existing blast furnace operations.
For investors, CCUS offers both financial and environmental advantages. Companies that integrate CCUS technology will be able to manage carbon risks, improve their ESG (Environmental, Social, and Governance) credentials, and position themselves as leaders in a low-carbon economy. As emissions regulations tighten globally, integrating CCUS is essential for maintaining competitiveness. By aligning with climate-related targets and mitigating emissions-based liabilities, companies can create long-term value for investors and stakeholders alike.
The Northern Lights CCUS Facility
The Northern Lights CCUS facility, located off Norway’s coast, stands as a pioneering project in Europe’s decarbonisation efforts. This facility is the world’s first open-source, cross-border CO2 transport and storage network, offering a scalable solution to help industries decarbonise. The facility is backed by substantial Norwegian government funding and industry giants Equinor, Shell, and Total Energies, which have helped develop the infrastructure to capture, transport, and store CO2 emissions in saline aquifers 2,600 meters below the North Sea. The first phase of the project is capable of storing 1.5 million tonnes of CO2 annually, with plans to expand to over 5 million tonnes per year (Northern Lights). Northern Lights demonstrates that scalable CCUS infrastructure can play a pivotal role in global decarbonisation efforts. Its open-source model allows multiple industrial partners to access its storage facilities, positioning Norway as a leader in the emerging CCUS market and offering a blueprint for similar projects worldwide.
Challenges to CCUS Adoption
Despite its potential, the path to widespread CCUS adoption faces several challenges. Initial infrastructure costs can exceed €100 million per facility, which poses a significant challenge for companies with tight margins (Global CCS Institute). Additionally, regulatory frameworks vary widely across regions, creating uncertainty for long-term investments. However, financing models are emerging to address these barriers. Public-private partnerships, such as the one behind Northern Lights, are making CCUS more accessible. Government incentives, carbon pricing mechanisms, and technology-sharing agreements are also helping to distribute financial risks and accelerate the adoption of CCUS technology.
References:
Global Carbon Project (2024) ‘Fossil fuel CO2 emissions increase again in 2024.’ Available at: https://globalcarbonbudget.org/fossil-fuel-co2-emissions-increase-again-in-2024/
IPPC Sixth Assessment Report (2022), ‘Climate Change 2022: Mitigation of Climate Change.’ Available at: https://www.ipcc.ch/report/ar6/wg3/
International Energy Agency, ‘Carbon Capture, Utilisation and Storage.’ Available at: https://www.iea.org/energy-system/carbon-capture-utilisation-and-storage
Econic, ‘What is carbon capture and utilization (CCU)?’ Available at: https://www.econic-technologies.com/what-is-carbon-capture-and-utilization-ccu/
Northern Lights, ‘Accelerating decarbonisation.’ Available at: https://norlights.com https://www.iea.org/reports/ccus-in-clean-energy-transitions
International Energy Agency, ‘CCUS in Clean Energy Transitions.’ Available at: https://www.heidelbergmaterials.com/en/sustainability/we-decarbonize-the-construction-industry/ccus
Heidelberg Materials, ‘CCUS: more future with less CO₂.’ Available at: https://corporate.arcelormittal.com/sustainability/climate-action-reports
Arcelor Mittal (2021), ‘Climate Action Report.’ Available at: https://www.globalccsinstitute.com/resources/publications-reports-research/global-status-of-ccs-2023-executive-summary/
Global CCS Institute, ‘Global Status of CCS 2023 – Report & Executive Summary.’ Available at: https://www.globalccsinstitute.com/resources/publications-reports-research/global-status-of-ccs-2023-executive-summary/