Germany's energy-intensive industrial companies have warned against any "dilution" of the government's proposed carbon storage legislation, ahead of a debate this week in the country's upper house of parliament on proposed changes to the bill, which would restrict the use of carbon capture and storage (CCS) technology.
The bill on CO2 storage and transport drawn up by Germany's government will be read by the upper house of parliament, the Bundesrat, on Friday. The Bundesrat committees for economic affairs and the environment have argued that allowing CCS use for gas-fired power generation would create "massive" planning uncertainty for many hydrogen projects, and jeopardise the urgently needed hydrogen core network. They are recommending a focus on using CCS for unavoidable residual emissions from industries such as lime or waste incineration plants.
The environment committee also recommended axing the status of "overriding public interest" for CO2 pipelines. This would put them on a par with other energy transition projects such as offshore grid connection systems or hydrogen pipelines, which they may end up replacing, the committee warned.
But this proposed axing could lead to lengthy proceedings and delays, energy-intensive industry association VIK said on Tuesday.
The committee of economic affairs also called on the federal government to investigate the "most suitable" financing and regulatory models for rapidly establishing and expanding a CO2 transport infrastructure.
And it demanded that the government include in its expected carbon management strategy a clear definition of the industries and technologies to be assigned "difficult" and "unavoidable" greenhouse gas (GHG) emissions, to avoid fossil fuel lock-in. This would boost planning security for companies, the committee said.
Both committees recommended slashing the bill's provision for simplified permission procedures when a CO2 pipeline is to be built and operated near an existing or planned hydrogen pipeline, rejecting the assumption that this cannot result in any additional adverse effects.
The government bill had been welcomed by industry for including gas-fired power plants and industrial processes with "difficult-to-abate" GHG emissions.
Industry groups need the "freedom to decide" on the decarbonisation option that is most suitable for their location, VIK said. Excluding CCS for combined heat and power and hydrogen-ready gas-fired units would be a "grave mistake", it said.
The committee recommendations are an "important compass for further legislation", said lawyer Oliver Grundmann, who spearheaded an earlier iteration of the carbon storage law under the previous government as a member of the CDU/CSU alliance.
Grundmann commended the committees' emphasis on strong standards and a "clear focus on unavoidable industrial emissions".
Germany's new carbon storage and transport bill will enable the commercial deployment of CCS technology in Germany and will form the basis for the country's carbon management strategy.
The bill's last iteration failed mainly because of opposition from a number of then governing party deputies from the now opposition Green party and co-governing SPD party to allowing CCS for gas-fired generation.
