Europe’s industrial sector faces the dual challenge of cutting emissions and staying competitive. As climate goals tighten, innovative carbon utilisation technologies are emerging as a promising solution. This article explores their current state, and the hurdles and opportunities for scaling them across Europe.
Introduction
Decarbonizing the European industrial sector is no longer just an environmental goal — it is a strategic necessity. As the EU tightens its climate regulations and public demand for sustainable practices intensifies, industries across the continent are facing mounting pressure to transit towards lower carbon-based emissions scenarios.
Carbon Capture and Utilisation (CCU) offers a compelling approach to industrial decarbonisation by capturing CO₂ from flue gases or the atmosphere and transforming it into valuable products. Unlike Carbon Capture and Storage (CCS), which focuses on long-term Carbon (or CO2) isolation, CCU repurposes emissions into marketable goods—ranging from synthetic fuels and polymers to building materials and fertilisers.
However, realising the potential of CCU at scale will require overcoming technological, regulatory, and financial barriers. This article assesses the state of the art and what lies ahead on the path to mainstream adoption.
2. Understanding Carbon Utilisation Technologies
2.1 Definition and Scope
As Europe moves towards a climate-neutral economy, carbon utilisation technologies are gaining more recognition due to their dual role: reducing greenhouse gas emissions and creating new value streams from captured carbon. But what exactly do we understand by “carbon utilisation”, and what kind of technologies fall under this term?
CCU refers to a broad set of technologies and processes that capture carbon dioxide (CO₂) — from industrial flue gases, direct air capture, or other sources — and transform it into demanded platform products or services. Unlike traditional CCS, which focuses solely on isolation, CCU foresees CO₂ as a resource rather than treating it as waste (CO2 Value Europe, n.d.).
The scope of CCU extends across multiple sectors and disciplines, touching chemistry, materials science, biotechnology, and engineering. These technologies can contribute to circular economy goals by closing the carbon loop, turning emissions into resources for other industrial processes (Sankaran, 2023).
2.2 Types of Technologies
Carbon utilisation can be broadly categorized into several technological pathways, each with its own level of maturity, potential impact, and application areas:
Chemical Conversion
CO₂ is used as a feedstock to produce chemicals and fuels such as methanol, formic acid, urea, or synthetic hydrocarbons. This route often relies on catalytic and/or photocatalytic processes, which may be powered by renewable energy. Example: Power-to-methanol systems integrating captured CO₂ and green hydrogen.
Biological Conversion
Microorganisms such as algae or engineered bacteria are used to consume CO₂ and convert it into biofuels, proteins, or other biomass-derived products. These systems can be integrated with biorefineries or wastewater treatment plants. Example: Algae cultivation systems that turn flue gas CO₂ into biomass for bio-based materials.
Mineralisation and Building Materials
CO₂ is forced to react with industrial waste or natural minerals to form solid carbonates, which can be used in construction materials such as concrete or aggregates. This pathway offers a permanent form of carbon storage with added commercial value. Example: Carbonated concrete blocks or aggregates produced using captured CO₂.
Polymer and Material Production
Advanced technologies use CO₂ to produce polymers and plastics, replacing fossil-based raw materials in everyday products. Example: Polyurethane foams derived partly from CO₂-based feedstocks.
Synthetic Fuels (e-Fuels)
Combining captured CO₂ with green hydrogen (via electrolysis) enables the creation of synthetic fuels, suitable for sectors that are difficult to electrify, such as aviation or maritime transport. Example:
E-kerosene for sustainable aviation fuel (SAF).
3. Current State of Carbon Utilisation Technologies
Technology Readiness and Maturity
Many carbon utilisation solutions are currently situated between Technology Readiness Levels (TRL) 4–7, indicating that they have been validated in laboratory and pilot-scale environments but are not yet commercially widespread. The Global CCS Institute (2021) reported that 135 CCUS facilities exist globally, with 27 operational and 62 in development or construction. (Global CCS Institute, 2021). For instance, projects like LEILAC and CarbonCure demonstrate pilot-to-pre-commercial scale applications of CO₂ mineralisation in the construction sector. In Iceland, Carbon Recycling International operates the George Olah Plant, which converts geothermal CO₂ into methanol via its “Emissions to Liquids” (ETL) process.
Market Readiness: How Close Are We?
Most CCU technologies have their conceptual viability established in the pilot scale and the need to transform CO2 into products that, due to the immaturity of the current regulatory structure, cannot yet be available at the market. While some carbon utilisation pathways (e.g. urea or methanol production using industrial CO₂) are already technically and commercially proven, others — like direct air capture with fuel synthesis or biological CO₂ conversion — remain at the demonstration or early commercial stage (Dziejarski et al,, 2023).
A major factor influencing readiness is the availability of low-cost renewable electricity and green hydrogen, which are essential inputs for many CCU systems. Policy support, carbon pricing, and public procurement mechanisms will also determine how quickly these technologies scale.
Economic Viability and Scalability
Most Carbon Capture and Utilization (CCU) technologies continue to struggle with cost-competitiveness. Compared to traditional fossil-based production, carbon-derived fuels or materials still face a significant price premium. This is especially true for synthetic fuels, where the cost of green hydrogen and electrolyzers is still relatively high. Market penetration will depend on whether these technologies can scale without compromising efficiency or increasing emissions elsewhere in the value chain.
Additionally, the lack of standardized metrics to assess carbon reduction impacts creates market uncertainty. Life Cycle Assessment (LCA) methodologies vary widely, and without harmonised frameworks, it is difficult to certify, compare, or monetise the environmental benefits of CCU products (Müller et al., 2020) Significant efforts—including guidelines from academic groups and industry (e.g., ISO 14040/44, TU Berlin, Global CO₂ Initiative)—aim to harmonize methodologies and improve transparency.
Regulatory Uncertainty and Social Perception
The regulatory landscape for CCU in Europe remains fragmented, with diverging national interpretations of carbon accounting rules, product standards, and eligibility for incentives. For instance, questions remain on how CCU products will be treated under the EU Emissions Trading System (ETS) or whether they qualify under renewable energy targets.
There is also a public awareness gap. While carbon capture and storage (CCS) has seen rising public scrutiny, CCU’s profile among the general public is still low. Without clear communication of the environmental and economic benefits, these technologies risk being misunderstood or underutilised. Public perception will play a crucial role in shaping political and financial support.
Conclusion
Carbon utilisation technologies are set to play a vital role in achieving climate neutrality in Europe. By converting emissions into valuable products, CCU merges decarbonisation goals with circular economy principles. To realise its full potential, Europe must invest in technology development, harmonise regulation, develop enabling infrastructure, and create market incentives. Public engagement and education will also be essential to secure political and societal support. With the right strategic mix, CCU can evolve from a niche concept into a major pillar of Europe’s green industrial transformation.
References
CO2 Value Europe. (n.d.). What is CCU?
Dziejarski, B., Krzyżyńska, R., & Andersson, K. (2023). Current status of carbon capture, utilization, and storage technologies in the global economy: A survey of technical assessment. Fuel, 342, 127776.
Global CCS Institute. (2021). The Global Status of CCS Report 2021. Global CCS Institute.
Müller, L. J., Kätelhön, A., Bachmann, M., Zimmermann, A., Sternberg, A., & Bardow, A. (2020). A guideline for life cycle assessment of carbon capture and utilization. Frontiers in Energy Research, 8, 15.
Sankaran, K. (2023). Turning black to green: Circular economy of industrial carbon emissions. Energy for Sustainable Development, 74, 463–470.