07.02.2024
Source: Energy & Management Powernews
European industry will not be able to manage without fossil fuels for the foreseeable future. Brussels is considering how to deal with the resulting carbon dioxide.
From 2050, no more greenhouse gases are to be released into the atmosphere in the EU. However, this does not mean that industry or the energy sector will be able to completely dispense with the use of fossil fuels. According to the EU Commission, the resulting CO2 should be captured and stored or used in other industrial processes. CO2 that escapes into the atmosphere must be removed from it and stored permanently, according to a communication published by the Commission on February 6.
In it, the Commission outlines the development of a complete CO2 supply chain over the next few years: Carbon dioxide produced in chemical factories, cement or power plants would be captured using appropriate facilities, transported onwards via pipelines, by ship, rail or truck and either processed at the end or deposited in geologically suitable final storage sites.
In order to achieve its climate targets, the EU would need to be able to capture at least 50 million tons of CO2 per year by 2030. This capacity must be increased to 450 million tons by 2050, according to the communication. From 2040, at least 200 million tons of CO2 per year would have to be deposited in the European Economic Area (EEA: EU, Norway, Iceland, Liechtenstein).
Storage in geological formations
In the long term, the Commission expects that the EU will have to find compensation for at least 400 million tons of CO2 per year that are unavoidable in industry, agriculture, aviation and elsewhere. Natural" solutions (BioCCS) should also play a role in this. The Commission assumes that at least 100 million tons of CO2 will still be produced in power plants that use fossil fuels or biomass in 2050.
Somewhat more carbon dioxide will be produced in industrial processes, for example in the chemical industry. "100 to 200 million tons of CO2 must be removed directly from the atmosphere." Most of the captured CO2 is to be stored in geological formations that are suitable for this purpose. A growing proportion of the remaining CO2 could be used to manufacture new products. Brussels sees opportunities for this in the production of new building materials, synthetic fuels and chemicals.
To date, 20 EU member states are relying on the storage (CCS) and/or use (CCU) of carbon dioxide to achieve their climate targets. This includes Germany. The most advanced plans for storing CO2 are in Denmark and the Netherlands, which are also promoting the use of CCS by the state. There is also growing interest from industry in France, Germany and Austria, writes the Commission.
At European level, emissions trading (ETS) is an important incentive for the use of CCS and CCU. The Union's state aid rules allow member states to financially promote their use. According to the net-zero industry regulation, CCS and CCU are considered "strategic technologies" that are approved more quickly. According to the Commission, the technological solutions for capturing CO2 are available, but their industrial use is only just beginning.
Potential storage sites are known in principle, but still need to be developed into operational landfills. This would require considerable investment, including for the development of a transport infrastructure. In addition, the public must be convinced that CCS is a reliable solution for the climate.
Billions in investment required
The biggest challenge is the task of turning CO2 utilization and disposal into a business. After all, it costs between 13 and 103 euros to capture one tonne of industrial CO2. Added to this are transportation and storage.
Regulation is needed for the entire value chain that takes into account the special risks of the industry. Mentioned in this context are, for example, liability for leaks in pipelines and storage facilities or coordination for cross-border projects: "The capture and storage of CO2 must be recognized by all governments in the EU as a legitimate and necessary option for decarbonization."
The Commission's goal is a single market for CO2 with uniform regulation. However, the development of the CO2 supply chain requires billions of euros in investment, which will primarily be provided by industry. The Commission estimates investments of 3 billion euros for the landfills for 50 million tons of CO2 planned by 2030 alone. Added to this is 12.2 billion euros for the transportation infrastructure. A further 16 billion euros would be added by 2040.
The first projects could certainly not be realized without public start-up funding. However, 3.3 billion euros would be available for this in the EU's innovation fund. In the end, CCS, CCU and the transportation of carbon dioxide across Europe are set to become big business. Commission officials have calculated that the turnover of the future CO2 industry could be between 45 and 100 billion euros. This could be the basis for up to 170,000 new jobs
Author: Tom Weingärtner
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