North Sea Carbon Capture Projects Showing Steady Progress

Carbon sequestration projects are beginning to make tangible progress, thanks largely to pioneering initiatives in Europe’s North Sea region. In this FactSet Insight, we will explore the key pathways in which companies and governments are transforming these large-scale projects from high-risk, exploratory ventures towards viable, impactful pathways for CO₂ emissions reduction. While challenges remain, particularly in securing public support and managing high project costs, the companies that are making progress on carbon storage ventures are helping lay the foundation for broader adoption.

North Sea Storage Leads the Way

Since the 1990s, the Sleipner Carbon Capture and Storage (CCS) project has proven that carbon storage is viable in the North Sea. This pioneering project scrubs CO₂ from extracted natural gas and injects it into the Utsira saline aquifer. Today, companies are still looking to the North Sea for CO₂ storage solutions, this time with the goal of reducing onshore industry emissions. To achieve this, companies typically negotiate long-term CO₂ offtake agreements to solidify revenue streams, while simultaneously working with various levels of governments to secure grants or loans that address funding gaps. While many projects in the region are still in early development, the following projects have taken strong initial steps, with most led by legacy natural gas producers:

Norway

• Northern Lights (Owners: TotalEnergies, Equinor, Shell; Capacity: 1.5–5 Mtpa): First CO₂ for Phase I was injected in August 2025. Phase II has reached FID, supported by EU grants and commercial agreements with Stockholm Exergi for CO₂ offtake from its Bioenergy-CCS facility. Phase II will include expanded CO₂ storage capacity and upgrades to infrastructure and transport.

United Kingdom

• Northern Endurance Partnership (Owners: BP, Equinor, TotalEnergies; Capacity: 4– 23 Mtpa): A lease for CO₂ storage was signed with the Crown Estate in January 2026, and consent for an appraisal well was given by the North Sea Transition Authority in March. Start-up is expected in 2028, and offtake agreements are targeting hydrogen and power producers in the Teesside and Humber industrial regions on the east coast of England.
• Project Poseidon (Owners: Perenco, Carbon Catalyst, Harbour Energy; Capacity: 1.5–40 Mtpa) and Bacton CCS (Owner: Eni; Capacity: 10–20 Mtpa): A successful CO₂ injection test began in March 2025 for Poseidon. Poseidon targets the Leman Gas Field with a planned 2029 launch. Bacton CCS drilled an appraisal well in October 2025 in the depleted Hewett Gas Field. Although separate projects, both are pursuing offtake agreements with emitters in the Greater London and East Anglia regions of England.

Denmark

• Greensand Future (Owners: INEOS, Harbour Energy, Nordsøfonden; Capacity: 400 ktpa–8 Mtpa): In late 2025, Denmark granted its first ever CO₂ storage permit for the Nini West field. Construction of CO₂ carrier vessels and onshore receiving terminals is underway, with injection scheduled for 2026.

Netherlands

• Porthos (Owners: Port of Rotterdam Authority, EBN, Gasunie; Capacity 2.5–10 Mtpa) and Aramis (Owners: TotalEnergies, Shell, EBN, Gasunie; Capacity: 7.5–22 Mtpa): Porthos will begin injection into the P18 cluster of gas fields from existing offshore platform P18-A in 2026. Aramis will target gas fields operated by Eni, Shell, and TotalEnergies. Porthos and Aramis will collaborate on CO₂ compression infrastructure and onshore facilities through the CO2TransPorts project. 

CO₂ Sources Around the North Sea

As North Sea CO₂ storage expands, associated capture projects are experiencing similar tailwinds. Currently, the Oil and Gas sector leads the pack of currently operational CO₂ capture projects, fueled by established efforts like the Sleipner CCS Project. However, in the coming years, the Power sector is expected to be the primary CO₂ supply source for storage projects in the North Sea. Carbon captured from these facilities would account for over half of CO₂ captured annually in the region, followed next by Cement & Lime, and then Hydrogen+ (facilities producing blue hydrogen or downstream products that incorporate blue hydrogen, such as ammonia or methanol). Notably, the Oil and Gas sector does not have a strong presence in planned capture project buildout, instead positioning themselves as key players in the storage and transportation portion of these initiatives.

Conclusion

The North Sea is shaping up to be an important location for European carbon storage, with several projects already making material progress and beginning to alleviate market uncertainty by developing frameworks for success that other projects can utilize. The next few years represent a critical juncture for the industry and will test whether early projects and government support can translate to a mature, self-sustaining industry. If these early storage projects do prove successful, then we anticipate increased investment and faster project development for CCS projects in the North Sea region, anchored by CO₂ sourced primarily from the Power, Cement & Lime, and Hydrogen+ sectors.