German Cabinet Approves Carbon Capture and Storage Draft Bill

German Cabinet Approves Carbon Capture and Storage Draft Bill

Germany's cabinet approved a draft bill on Wednesday to allow carbon dioxide capture and storage (CCS) for specific industrial sectors, aiming for carbon neutrality by 2045 while sustaining heavy industries.

Previously restricted, CCS technology will now be used to capture between 34 million and 73 million tons of CO2 annually by 2045. The bill permits CCS for industries that cannot be electrified, excluding coal-fired power plants, and establishes a legal framework for CO2 pipeline infrastructure.

Companies can store CO2 in the North Sea bed or inland with state approval. Germany's North Sea storage capacity is estimated at 1.5 to 8.3 billion tons, with an annual deposit capacity of up to 20 million tons.

The bill also allows CO2 exports, pending ratification of an amended clause in the London Protocol international treaty to enable cross-border CO2 transport for sub-seabed storage.