PGE chief executive Tomasz Zadroga told Reuters that PGE will completely drop the CCS project if it does not receive more funds for the investment and after it becomes operational.
He also said that the project will not be completed in the absence of 100% financial aid.
The CCS project located in Belchatow, Poland, has earlier received EUR180m (255.89m) aid from the European Union, which is not sufficient to make the project economically viable, according to PGE.
Poland produces about 90% of its energy from highly polluting coal burned in outdated and inefficient power plants.
The nation is planning to build two nuclear plants with a total capacity of 6GW by 2030, in a bid to reduce its dependence on coal.