The European Commission has enacted a pivotal decision under Article 23 of the Net‑Zero Industry Act (NZIA). It assigns binding CO₂ storage obligations to 44 oil and gas producers across the European Union, requiring at least 50 million tonnes of annual CO₂ injection capacity by 2030 and potentially 250 million tonnes by 2040, according to Clarksons's release.
While the directive remains under scrutiny by the European Parliament and Council, it directly links fossil fuel extraction to storage responsibilities and highlights the urgent need to expand the low‑carbon CO₂ (LCO₂) shipping market in Europe.
The affected companies must submit detailed plans by 30 June 2025. Given that many are not yet active in carbon capture and storage (CCS), collaborations with third‑party storage developers are expected to emerge.
“No time to waste,” said Kenneth Tveter, global head of green transition and LCO₂ at Clarksons. He added that shipping LCO₂ offers shorter lead times than pipelines, greater flexibility, and often better economic efficiency, making it the realistic transport option post‑NZIA.
Currently, only Northern Lights and Project Greensand have reached final investment decision. This leaves emitters with limited storage options.
The NZIA does not address transportation infrastructure, creating a critical bottleneck: CCS value chains typically require 6‑8 years to operationalise, yet only five years remain before 2030.
Vebjørn Kjerstad, LCO₂ shipping specialist at Clarksons, stated that shipyard capacity and technical know‑how are market‑dependent, and that projects not initiating a shipping strategy now risk falling behind.
Clarksons’ Green Transition and LCO₂ team are positioned to support companies in developing shipping strategies and executing project plans.
European Commission is the executive branch of the European Union responsible for proposing legislation, enforcing EU laws, and managing day‑to‑day operations. The Commission introduced Article 23 under the Net‑Zero Industry Act to enforce CO₂ storage obligations on fossil fuel producers.
Clarksons is a global maritime services group headquartered in London. It offers ship‑broking, research, financial services, port operations, and green‑transition advisory.
Northern Lights is Europe’s first cross‑border CO₂ shipping and storage project, located in Norway. It transports captured CO₂ from industrial sources in Norway, Denmark, and the Netherlands to a terminal in Øygarden for offshore injection.
Project Greensand is a Norwegian CCS initiative intended to store CO₂ in offshore sandstone formations.