With the Federal Climate Protection Act, Germany has demonstrated its commitment to the goal of net greenhouse gas neutrality by 2045. Carbon capture and storage (CCS) and carbon capture and utilisation (CCU) technologies are a key factor in achieving the German government’s ambitious climate targets. In this context, on 27 September 2024, the Bundestag debated the amendment to the Carbon Dioxide Storage Act (KSpG) at first reading, which is intended to significantly improve the framework conditions for CCS and CCU technologies in Germany. These technologies are of fundamental importance for the reduction of greenhouse gas emissions, particularly in industrial processes that are difficult to decarbonise.
What are CCS and CCU?
Carbon capture and storage (CCS) refers to the capture and permanent storage of carbon dioxide (CO₂) in geological formations. Carbon Capture and Utilisation (CCU), on the other hand, describes the use of captured CO₂ for industrial processes. Both technologies prevent the emission of carbon dioxide into the atmosphere and therefore contribute to the reduction of greenhouse gases. One successful example of CCS is Norway, where more than 19 million tonnes of CO₂ have been safely stored under the North Sea since 1996.
Significance for industry
In 2023, German industry produced around 144 million tonnes of CO₂, making it the country’s second-largest emitter. CCS and CCU are particularly important for the steel, chemical, cement and lime industries as well as glass and ceramics production to reduce emissions from production processes (so-called process emissions). Emissions of this type arise, for example, in cement production, where CO₂ is released as a by-product when limestone is processed into quicklime. CCS/CCU technology is intended to address emissions that are currently difficult or otherwise technically unavoidable. CCS and CCU also offer a temporary solution for industries where emission reduction technologies are not yet available or where the switch to green hydrogen and the electrification of production processes is not currently economically viable.
How does CO2 capture work?
Carbon dioxide is captured using various processes. The post-combustion process enables the filtering of CO₂ from exhaust gases, for example in cement works. In the oxyfuel process, on the other hand, CO₂-rich gas mixtures, essentially consisting of carbon dioxide and water vapour, are produced by combustion with pure oxygen. The water vapour is then condensed out and gaseous by-products are separated. Both methods have proven to be promising, with the oxyfuel process offering high efficiency due to the simple separation of the CO₂.
Transport and infrastructure for CO2
CO₂ can be transported via various transport routes, including pipelines, lorries, trains and ships. A comprehensive CO₂ infrastructure is essential for transporting CO₂ from the emission sources to the storage or utilisation facilities. No such infrastructure exists yet in Germany as the existing KSpG only covers transport to storage facilities. An extension of the law is therefore necessary to also support CCU projects. Pipelines are a particularly efficient transport option, as they can transport large quantities of CO₂ continuously. The construction of a pipeline network is a necessary step to meet the requirements of the industry and achieve the climate targets.
Storage and utilisation of CO2
Carbon dioxide (CO₂) is stored in deep geological formations, such as depleted natural gas reservoirs and saline aquifers. These rock layers offer safe conditions for the permanent storage of CO₂ due to their dense top layers. CCU also offers promising prospects: CO₂ can be used to produce chemicals such as methanol, which in turn is used to produce plastics. It can also be used to generate energy to produce synthetic fuels.
CCU/CCS hubs
Hubs are central locations where CO₂ is collected from various industrial companies and either stored or reused. The main advantage of such hubs is the shared use of infrastructure by several companies, for example in the form of shared pipelines and storage facilities. There are currently around 15 such hubs worldwide, the majority of which are in Europe and North America. It is predicted that the number of hubs will have to increase to up to 700 by 2050 to significantly reduce CO₂ emissions.
One example of the implementation of this technology is the Porthos project in the Netherlands, in which CO₂ from the port of Rotterdam is stored in empty gas fields under the North Sea. The shared use of infrastructure allows for accelerated expansion, as the first Carbon Capture, Utilisation and Storage (CCUS) hubs are expected to store 5-10 million tonnes of CO₂ per year by 2030, with potential for further growth. Furthermore, the shared use of infrastructure leads to a reduction in construction and operating costs as well as investment risks, while the likelihood of government support increases. Pioneering countries such as the UK, Norway and the Netherlands have already created political incentives to promote CCUS. However, the co-operation of numerous interest groups requires careful communication to manage the complexity.
Legal framework
The KSpG has formed the legal basis for the pipeline-based transport and storage of CO₂ since 2012, but the previous version of the law excluded carbon capture and utilisation (CCU). This loophole is to be closed with the upcoming amendment to increase legal certainty for CCU projects. In August 2024, the German government adopted the key points of a national carbon management strategy, which provides for the targeted promotion of CCS and CCU technologies in emission-intensive sectors. For the first time, large-scale underground CO₂ storage is also to be permitted in the German North Sea. In addition, each federal state is to be given the opportunity to decide on onshore storage in the respective state areas.
International role models and national projects
In the context of international climate policy, projects such as the large-scale storage of CO₂ under the North Sea serve as a model. With this project, Norway has demonstrated that large-scale CO₂ storage is technically feasible. In Germany, too, the commissioning of a CCU plant on an industrial scale is planned from 2025.
Outlook
The capture and storage/utilisation of carbon could become an important building block for the German energy transition. After all, not every industry can be decarbonised using green electricity and not every sector is suitable for the use of hydrogen. CCS and CCU are becoming increasingly interesting here and will become a serious alternative at the latest when CO₂ certificate prices rise.
The amendment of the KSpG and the expansion of a CO₂ infrastructure are necessary steps towards achieving a regulated ramp-up of CCS and CCU. By creating a clear legal framework and implementing targeted funding programmes, CCS and CCU technology can make an effective contribution to the decarbonisation of industry. Although the process of CO₂ capture, transport and storage is energy-intensive and costly, it remains relevant for certain industries such as cement and lime production.
