The German government has approved two bills to accelerate the integration of hydrogen and carbon capture technologies into the country’s energy and industrial systems, reports Euractiv. These technologies are seen as crucial to Germany’s goal of achieving carbon neutrality by 2045 while maintaining its heavy industry.
Germany has had limited use of carbon capture and storage (CCS) but now estimates a need to capture 34 to 73 million tons annually by 2045. The new bill allows carbon-intensive industries, excluding coal-fired power plants, to utilize CCS. It also creates a legal framework for developing CO2 pipeline infrastructure. Companies can store carbon at the bottom of the North Sea or domestically, provided federal states permit it. Geologically, Germany has between 1.5 and 8.3 billion tons of CO2 storage capacity under its part of the North Sea and can store up to 20 million tons annually.
The hydrogen bill will fast-track the construction of infrastructure, import, and production facilities. This infrastructure will be granted the status of “overriding public interest,” prioritizing it in the approval process. Permitting procedures will be simplified and digitized, reducing court challenges to hydrogen projects and environmental impact assessments.
Germany aims to expand hydrogen use as a future energy source to reduce greenhouse gas emissions from highly polluting industrial sectors, such as steel and chemicals, which cannot be electrified. This shift should also reduce dependence on imported fossil fuels. In April 2024, the German government coalition agreed on a financing mechanism for the future hydrogen network, extending its construction period to 2037 and providing investor protection in case of bankruptcy.
