21/05/2026
Developing successful CCUS projects
Lessons from greenfield infrastructure finance
CCUS – capturing CO₂ at the source and storing or reusing it – is moving from pilot projects to large-scale deployment. Within a hydrogen strategy, CCUS raises economic value and supports decarbonization goals.
CCUS is gaining traction as a key technology for cutting emissions in industries where electrification alone won’t work. Yet, like many large-scale infrastructure builds, CCUS projects face real financing hurdles especially if good contracts are not in place: high upfront costs, uncertain revenues, shifting policy, and complex risk-sharing between multiple parties.
The principles that made renewable energy financeable apply here, too. Clear revenue streams, solid contract structures, and disciplined risk allocation form the foundation for any viable CCUS project. Biogenic CO₂ can be combined with hydrogen to produce e-fuels, which carry significantly higher value than hydrogen alone. CCUS, then, is not only a climate tool – it adds direct value to hydrogen.
Bankability comes down to converting the CCUS value chain into predictable cash flows, much like successful greenfield projects in renewables.
CCUS is capital-intensive
CCUS projects often require tens or hundreds of millions of euros to build capture plants, transport networks, and storage infrastructure. The technology exists; the real challenge is structuring the right agreements with reliable counterparties, particularly for offtake.
Bankability comes down to converting the CCUS value chain into predictable cash flows, much like successful greenfield projects in renewables. Risks should be allocated to the parties best placed to carry them. Some risks can also be reduced through design choices. For example, a CCU project (where captured CO₂ is put to use, such as in e-fuels) might keep CCS (permanent geological storage) as a fallback, mitigating risks related to CO₂ utilization.
Some key insights on successful financing
A solid project finance model is essential for optimizing leverage and securing good debt terms. Especially key metrics must be backed by real agreements. The offtake agreement is the most critical commercial factor, yet it’s often left too late, risking unnecessary development costs. Models should reflect conservative assumptions and account for policy and market shifts.
Public-sector instruments like grants can also unlock private capital and lower the cost of capital. Funding is available at both national and EU levels.
EU policy clarity is a catalyst for CCUS investment
Policy uncertainty is one of the biggest investment barriers in CCUS. Without visibility into future rules, long-term capital commitments are hard to justify. One open question is whether waste-to-energy facilities will be included in the EU Emissions Trading System. Currently they are not.
Long-term investments demand long-term policy clarity. That said, policy risk can be managed, at least in part. With the right contract structures, CCUS projects are viable today.
Risk allocation is where projects are won or lost
Doing things in the right order minimizes costs and risk for the project owner. That means allocating risks to the parties best placed to carry them, and securing key commercial agreements early, not late.
CCUS project finance works when it follows proven infrastructure principles: clear revenue frameworks, bankable agreements, and realistic financial models. These are what make projects happen. With the right foundations, CCUS has real growth potential in the Finnish market.
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Elron
Advisory services in the energy sector – Elron.
Do you need help with project development or acquisitions in the energy sector? Our subsidiary Elron is a leading expert in the field and can bring the expertise necessary for success to your wind power project, for example.
How to effectively finance your greenfield infrastructure project
Lenders typically regard established technologies, like those utilized in wind farms, as more reliable compared to cutting-edge innovations in the circular economy. However, well-structured offtake agreements can mitigate the risks associated with these novel technologies. In all cases, a realistic bank model is essential for optimizing debt terms.