Expert insight by Inke Looman • 4 min read

The European Union is increasingly investing in the development of carbon capture, transport and storage (CCS). This is also reflected in the Horizon Europe 2026–2027 programme, which makes nearly € 120 million available for new funding opportunities in Industrial Carbon Management. Notably, this funding focuses not only on technological innovation but also on reducing the risks that delay large-scale infrastructure investments. Horizon Europe therefore provides an important complement to the Connecting Europe Facility Energy (CEF Energy), with the combination of both programmes creating new opportunities for the development of CCS projects.

Nearly € 120 million for CCS and CCU development

Horizon Europe 2026–2027 provides funding for various parts of the CO₂ value chain:

• € 43.8 million for CO₂ capture, purification and utilisation;
• € 30 million for reducing risks associated with local and regional CCS/CCU hubs;
• € 25 million for research into CO₂ storage in deep saline aquifers;
• € 16 million for scaling up Direct Air Capture (DAC) technologies to pilot demonstrations;
• € 5 million for policy implementation and standards for cross-border CO₂ transport and storage.

This allocation shows that the European Commission is focusing on the preparatory steps needed to turn CCS infrastructure plans into reality. These include demonstrating storage capacity, connecting industrial emitters and developing common standards.

How do Horizon Europe and CEF Energy complement each other?

Horizon Europe and CEF Energy support different stages of CCS projects. While Horizon Europe focuses on innovation, feasibility and risk reduction, CEF Energy supports the development of cross-border CO₂ infrastructure. This connection is important. A CO₂ transport network only becomes attractive when sufficient industrial emitters can supply CO₂ and there is certainty about available storage capacity. At the same time, companies are less likely to invest in CO₂ capture if transport and storage options are not available.

The new Horizon Europe funding can help overcome this mutual dependency. By demonstrating technologies, assessing storage sites and further developing regional CCS clusters, projects can prepare for future infrastructure investments.

Why a funding strategy for CCS projects is becoming increasingly important

For project developers, the challenge lies not only in identifying suitable European funding opportunities but also in using and combining these instruments effectively. For example, a project could initially undertake CO₂ storage research through Horizon Europe and subsequently explore CEF Energy funding for infrastructure studies or works. The Innovation Fund may also be relevant for certain parts of the CCS value chain.

However, these programmes do not automatically provide access to funding in successive stages. Each instrument has its own conditions, objectives and eligible activities. The key conclusion is therefore that a successful funding strategy does not begin with a single call for proposals, but with long-term project planning. Organisations that identify which funding instruments are suitable for each development stage at an early stage can prepare their projects more effectively and avoid missing important funding opportunities.

Hezelburcht has extensive experience with European CCS projects

During the CEF Energy application round, which closed on 30 September 2026, our specialists supported a substantial number of applications, including projects involving CO₂ transport and storage infrastructure. They also assisted projects with applications for European Project of Common Interest (PCI) status.

Our experience shows that successful projects do not begin their preparations just months in advance, but often years ahead. Large-scale CCS projects involve lengthy development processes in which technical studies, international cooperation, permitting and financing must be closely aligned. Our specialists help organisations coordinate these different elements and make timely use of the most suitable funding opportunities. Hezelburcht has extensive experience in supporting European CCS projects and related studies.

New opportunities for your CCS project in 2027

The Horizon Europe calls offer concrete opportunities for organisations working on CO₂ storage, regional CCS/CCU hubs or innovative DAC technologies.

Are you developing a CCS project? Now is a good time to explore how Horizon Europe and CEF Energy could complement each other within your project. Our specialists would be pleased to help you develop a funding strategy that aligns with the different stages of your project’s development. Contact us at info@hezelburcht.com or call 088 495 20 00 to arrange an introduction and explore which call is the best fit for your project. You can also fill in the contact form.

Contact form

About the author:
Inke Looman, MSc, has been with Hezelburcht since 2021, where she supports various organisations within the chemical industry building a strong grant application for their innovation project. With her background in Chemistry and Science, Management & Innovation, she knows the market inside out and is well placed to provide organisations with the best possible support.