Iberia's Carbon Capture and Storage Opportunity for Hard-to-Abate Industries

The article discusses the critical role of carbon capture, utilization, and storage (CCUS) in decarbonizing hard-to-abate (HtA) industries in Iberia, particularly Spain and Portugal.

• Iberia’s HtA industries (cement, steel, chemicals) contribute over 50% of industrial CO2 emissions and face rising EU ETS carbon prices (€60-€80/ton currently, potentially €110-€150/ton by 2030), increasing production costs significantly. Spain aims to reduce industrial emissions by 25% by 2030 but faces a gap that CCUS could help close. Key projects like TarraCO2-Storage have received €205 million EU funding.
• Three main CCS hubs in Iberia (Asturias, Barcelona–Tarragona, Cantabria–Basque Country) show varying cost-effectiveness, with Asturias being the most cost-efficient due to emission concentration. Total CCS project costs range from €10 billion to €17 billion over 25 years per hub. Regulatory and economic uncertainties, including permitting and carbon price volatility, challenge CCS deployment.

The article highlights the need for clear regulatory frameworks, effective incentives (e.g., Contracts for Difference), public involvement, and private sector coordination to realize CCS potential in Iberia and maintain industrial competitiveness amid EU decarbonization policies.