The German government has adopted a new bill amending its Carbon Dioxide Storage Act to lay the legal groundwork for the use of carbon capture and storage (CCS), carbon capture and utilization (CCU) and cross-border transport of CO2.
The draft law enables the transport, storage and use of CO2. It enables the construction of CO2 storage facilities for commercial use on an industrial scale within the continental shelf and the exclusive economic zone (EEZ). Marine protected areas and the territorial sea are excluded from CO2 storage.
Since CO2 pipelines and storage capacity have not yet been established in Germany, the law initially facilitates export.
The Norwegian-German Chamber of Commerce is positive about the opportunities. Norway is a key player in Europe's new CO2 market, and the decision opens up major economic opportunities for Norwegian companies along the entire CCS value chain – from transport and storage to infrastructure development and operation. In particular, Norway's leading role in CO2 storage, for example through the Northern Lights project, positions the country as a natural partner for German industry.
Australian company Provaris also welcomed the news saying it is nicely timed with our FEED phase now underway on a large scale low-pressure LCO2 tank, supported by our partner Yinson Production, targeting the large scale required for storage and injection in the Norway offshore sector, while also supporting the demand for larger LCO₂ shipping.
Before the law comes into force, both the Bundestag and the Federal Council must approve it.
The German government has also moved to accelerate the expansion of renewable energies with a draft law implements the requirements of the EU Renewable Energy Directive (RED III) in the areas of offshore wind energy and electricity grids (offshore connecting lines, transmission grids and distribution grids) into national law.
The law provides for the introduction of acceleration areas for offshore wind energy and infrastructure areas for transmission grids, distribution grids and offshore connecting lines. It also streamlines approval procedures.