Germany To Greenlight Carbon Capture & Storage From Gas Power Plants

Germany To Greenlight Carbon Capture & Storage From Gas Power Plants - Carbon Herald
Source: Brigitte Werner from Pixabay

This week, Germany unveiled a draft law that would allow the capture and storage of carbon emissions from gas-fired power plants. 

However, the law does not foresee subsidies for the use of this nascent technology specifically for gas power generation, and will also not permit the use of carbon capture and storage (CCS) solutions for coal-fired power plants. 

The idea behind the latter is to have the deadline for the phaseout of coal from the country’s overall energy mix pushed back from 2038 under current legislation to 2030.

On the flipside, Germany plans to introduce subsidies for the use of carbon capture and storage in the cement and lime industry, as the decarbonization of this notoriously hard-to-abate sector will be among the government’s main focuses in the coming years.

In the draft law, Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK) said: “Market conditions will determine whether CCS will be used in the electricity sector under these conditions at all. In particular, it will depend on the development of carbon certificate prices in the EU emissions trading scheme and the development of hydrogen prices.”

Robert Habeck, Germany’s Economic Affairs and Climate Action minister, praised the draft law and commented on the importance of CCS in achieving the nation’s climate targets and making its industry more competitive. 

Relevant: European Commission Gives Germany Green Light For $4.3 Billion Carbon CFDs

Another key point in the draft law is the mention of offshore versus onshore storage of CO2 emissions. Namely, the country’s energy ministry intends to only allow offshore storage and not permit carbon storage onshore.

With that said, Germany will need to collaborate with countries that have access to and are already exploring carbon storage opportunities in the North Sea, particularly such as Denmark and Norway. 

In order for the draft plan to come into force, it will need to be approved by the German government cabinet and the parliament.

Read more: Germany Votes To Increase Its Carbon Price By 50%

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