The German Government Paves the Way for Carbon Capture and Storage
The German government has taken a significant step forward in the fight against climate change by adopting a new bill that amends the Carbon Dioxide Storage Act. This new legislation lays the legal groundwork for the use of carbon capture and storage (CCS), carbon capture and utilization (CCU), and the cross-border transport of CO2.
Facilitating Carbon Capture and Storage
The draft law enables the transport, storage, and use of CO2, allowing for the construction of CO2 storage facilities on an industrial scale within the continental shelf and the exclusive economic zone (EEZ). However, it excludes marine protected areas and the territorial sea from CO2 storage activities.
While CO2 pipelines and storage capacity are not yet established in Germany, the new law initially focuses on facilitating export opportunities.
Opportunities for Norwegian and Australian Companies
The Norwegian-German Chamber of Commerce sees great potential in the new legislation, especially for Norwegian companies that are key players in Europe’s CO2 market. Norway’s expertise in CO2 storage, exemplified by projects like the Northern Lights project, makes it a natural partner for German industry.
Australian company Provaris is also optimistic about the opportunities presented by the new law. They are currently in the FEED phase of a project targeting large-scale CO2 storage and injection in the Norway offshore sector, aligning with the demand for larger LCO₂ shipping.
Legislative Process and Renewable Energy Expansion
Before the new law can come into effect, it must be approved by both the Bundestag and the Federal Council. In addition to the CCS legislation, the German government is also focusing on accelerating the expansion of renewable energies.
A draft law is being introduced to implement the requirements of the EU Renewable Energy Directive (RED III) in the areas of offshore wind energy and electricity grids. This legislation includes the introduction of acceleration areas for offshore wind energy and infrastructure areas for transmission grids, distribution grids, and offshore connecting lines, streamlining approval procedures in these sectors.
Overall, the German government’s proactive approach to carbon capture and storage, coupled with efforts to expand renewable energy sources, demonstrates a commitment to sustainable development and combating climate change.