France: Abandon of the Pycasso Project, a Contested Strategy for the Lacq Basin

The Pycasso project, aimed at storing CO2 to decarbonize industry in the Lacq Basin, has been abandoned. A lack of dialogue and risks to existing industries were key factors in this controversial decision.

Partagez:

The Lacq Basin in the Pyrénées-Atlantiques region was the focal point of an ambitious carbon dioxide (CO2) storage project, named Pycasso. Spearheaded by major industrial players like Teréga, Lafarge, ArcelorMittal, and Repsol, this project aimed to store five million tons of CO2 per year in the subsoil of the Pyrenean foothills, an initiative intended to decarbonize industries in southwestern France and northern Spain by 2030. However, due to increasing opposition from local elected officials, associations, and certain industrial groups, the project has officially been abandoned.

According to Dominique Mockly, CEO of Teréga, the abandonment was due to coactivity issues with pre-existing industrial infrastructure in the area. In a recent interview with *Sud Ouest*, he emphasized that the absence of dialogue between stakeholders was a significant barrier to the project’s progress. “That doesn’t mean there’s no solution, but for there to be solutions, there must be dialogue, and there is none. So, we decided to abandon the Lacq site,” he stated.

Challenges of Safety and Efficiency

Critics of the Pycasso project raised concerns about potential technological and natural risks posed by deep CO2 storage. Environmental associations and local industrial players highlighted the vulnerability of this technology, whose long-term effectiveness remains controversial. They argued that the project could jeopardize local industrial stability, particularly affecting the 7,500 direct jobs in the Lacq industrial basin.

Opponents labeled Pycasso as “madness,” arguing that the project placed undue pressure on the local economy while potentially exposing the population to poorly understood risks. They believe these risks significantly outweigh the anticipated decarbonization benefits. Carbon capture and storage (CCS) is a promising technology for reducing greenhouse gas emissions, but some view it as a temporary solution that mitigates environmental impacts without addressing the root sources of emissions.

A Challenge for France’s Decarbonization Strategy

The Ministry of Industry, in a report published in July, reiterated the importance of deploying CCS technologies as part of the national strategy to contain CO2 emissions. According to the report, France aims to capture between 4 and 8 million tons of CO2 by 2030, and to reach a target of 30 to 50 million tons by 2050. However, the case of Pycasso highlights the difficulties encountered in implementing such projects in densely occupied industrial areas, where balancing new decarbonization infrastructure with existing industries is complex.

Despite this setback, the consortium in charge of the Pycasso project has already identified ten other “promising” sites in the Occitanie and Nouvelle-Aquitaine regions to pursue its CO2 storage objectives. According to Dominique Mockly, the primary challenge remains finding consensus with local stakeholders to enable an energy transition without compromising regional industrial interests.

Alternatives for a Sustainable Transition

The cessation of the Pycasso project in the Lacq Basin opens a broader debate on how France can achieve its emission reduction goals without creating conflicts within industrial hubs. On one side, experts maintain that carbon storage is crucial to combating climate change; on the other, critics warn of the risk of this technology being used as a pretext to delay necessary structural transformations in industrial production processes.

The opposition that ultimately led to Pycasso’s abandonment demonstrates the importance of engaging with local stakeholders for a successful transition. As demand for decarbonization technologies increases, France will need to balance innovation and local acceptability to ensure the effectiveness and safety of its environmental initiatives.

Frontier Infrastructure Holdings has signed an offtake agreement with manager Wild Assets for up to 120 000 tonnes of BECCS credits, underscoring the voluntary market’s growing appetite for traceable, high-permanence carbon removals.
Global carbon capture and offset credit markets could exceed $1.35 trillion by 2050, driven by private investment, technological advances, and regulatory developments, according to analysis published by Wood Mackenzie.
The Australian carbon credit market is experiencing temporary price stabilization, while the emergence of new alternative financial instruments gradually attracts corporate attention, subtly altering the commercial and financial dynamics of the sector.
Norway has launched a major industrial project aimed at capturing, maritime transport, and geological storage of CO₂, mobilizing key energy players and significant public subsidies to ensure economic viability.
A €21mn European grant, managed by EIB Global, will fund Egyptian projects aimed at cutting industrial emissions and boosting recycling, while a related €135mn loan is expected to raise additional climate investments.
Stockholm Exergi begins construction of a CO₂ capture facility in Stockholm, integrated with the expansion of Northern Lights in Norway, reaching a total storage capacity of 5 million tonnes per year by 2028.
Global emissions coverage by carbon pricing systems reaches 28%, driven by expanding compliance markets, where demand nearly tripled within one year, according to a World Bank report.
Vietnam initiates a pilot carbon market targeting steel, cement, and thermal energy industries to prepare for nationwide regulation starting in 2029.
The U.S. Environmental Protection Agency (EPA) proposes granting Texas direct authority to issue carbon dioxide injection permits, potentially accelerating the commercial expansion of geological CO₂ storage projects.
Höegh Evi and Aker BP received Approval in Principle from DNV for a maritime carrier designed to transport liquefied CO₂ to offshore storage sites in Norway.
Norne and the Port of Aalborg begin construction of a 15 mn tonne per year CO2 terminal, supported by an EU grant.
The Lagos State government has launched a programme to deploy 80 million improved cookstoves, generating up to 1.2 billion tonnes of tradable carbon credits.
The US Department of Energy has cancelled 24 projects funded under the Biden administration, citing their lack of profitability and alignment with national energy priorities.
In the United States, the carbon black market faces unprecedented fluctuations in the first half of 2025, driven by declining industrial demand and persistent raw material volatility, casting doubts over the sector's future stability.
European and UK carbon markets paused this week as participants await clarity on future integration of both emissions trading systems.
A consortium led by European Energy has secured prequalification for a Danish carbon capture and storage project in Næstved, aiming to remove 150,000 tons of CO₂ per year under a national subsidy programme.
The joint project by Copenhagen Infrastructure Partners and Vestforbrænding is among ten initiatives selected by the Danish Energy Agency for public carbon capture and storage funding.
Canadian broker One Exchange partners with Stephen Avenue Marketing to create OX CO₂, a carbon trading platform combining digital technology and human expertise.
Russia has filed a complaint with the World Trade Organization (WTO) challenging the European Union's Carbon Border Adjustment Mechanism (CBAM), deeming it discriminatory and protectionist towards its strategic commodity exports.
BP recommends extending the UK emissions trading system through 2042 and calls for alignment with the European market while supporting the inclusion of carbon removals in the scheme.