- Heidelberg Materials has paused its €191 million GeZero carbon capture project in Germany, citing weak commercial conditions.
- The company identified gaps in CO₂ transport, storage infrastructure and value chains as major barriers to development.
Heidelberg Materials has suspended its GeZero carbon capture project in Geseke, Germany. The cement producer said current market conditions do not support a viable business case for the project.
The company designed GeZero to become Germany’s first inland cement plant to deploy scalable carbon capture technology. The project aimed to support industrial decarbonisation by capturing carbon dioxide from cement production.
Heidelberg Materials cited underdeveloped CO₂ transport and storage infrastructure as key reasons for the suspension. The company also highlighted gaps across the value chain needed to support carbon capture operations.
Chief Executive Dominik von Achten said the company would only pursue carbon capture with a stable and sound business case. He told Reuters that Geseke did not yet meet that standard. He described the suspension as a “tough but right decision.”
The project has received €191 million in European Union funding, equivalent to approximately $214 million. However, that support has not resolved the commercial and infrastructure challenges facing the development.
Heidelberg Materials stressed that the decision applies only to GeZero. It will not immediately affect operations at the company’s Geseke cement plant.
The company plans to continue optimising the project’s design. However, it has not announced a timeline for resuming development.
The suspension highlights the challenges facing carbon capture projects in energy-intensive industries. Developers need reliable transport and storage networks, supportive market conditions and viable commercial arrangements to advance these projects.
For Germany’s industrial decarbonisation efforts, GeZero’s pause underscores the importance of developing the infrastructure and business models needed to support carbon capture at scale.