Industry association calls for a free ride for CO2 storage

24.09.2025

Source: E & M powernews

The industry needs a reliable legal framework for the storage of CO2 (CCS) quickly. This is what the industry association VIK is calling for on the occasion of the current legislation.

The German Energy and Power Industry Association (VIK) is urgently warning against a "watering down" of the cabinet's draft amendment to the Carbon Dioxide Storage Act (KSpG). The draft lays the legal foundations for the use of CCS and CCU technologies (Carbon Capture and Storage and Carbon Capture and Utilization) for the first time. This involves the capture of CO2 from industrial processes, its transportation and either its permanent storage in geological formations (CCS) or its use as a raw material in industry (CCU).

"Climate neutrality by 2045 cannot be achieved without CCS/CCU," explains VIK Managing Director Christian Seyfert. The cement, lime, waste, steel and chemical industries in particular produce emissions that are technically difficult to avoid. "Without a clear legal basis for capture, transportation and storage, we lack the central option to reduce these residual emissions," he points out.

Important cabinet draft

The draft KspG provides a clear legal basis for CO2 storage in the North Sea for the first time. These could be set up under the German seabed (exclusive economic zone or continental shelf). CO2 could also be exported to neighboring countries such as Norway, the Netherlands or Denmark, where subsea storage facilities are already being prepared. Onshore storage projects could also be used if countries decide to do so.

In terms of planning and investment security, the draft bill would provide legal certainty by classifying CO2 pipelines as being of "overriding public interest". This would speed up approvals, similar to the hydrogen infrastructure. "This would allow companies to invest billions without having to go abroad," Seyfert advertised.

According to industry figures, 60 million tons of CO2 emissions will remain in Germany every year even with the maximum expansion of renewable energies. If Germany wants to become climate-neutral by 2045, it must find a way to effectively reduce these residual emissions. According to the VIK, CCS/CCU is the only way to do this.

Problematic proposals from the Bundesrat

The committees of the Federal Council want to change key elements of the cabinet draft. From the VIK's point of view, this would be fatal: without the classification as "overriding public interest", there is a risk of lengthy procedures and delays that could jeopardize the achievement of climate targets.

The proposed prioritization of avoidance measures alone ignores the fact that there are emissions that are technically difficult to avoid. Industrial companies need room to decide which defossilization option - electrification, hydrogen or CCS/CCU - makes sense for their location.

"Excluding CCS for combined heat and power plants (CHP) or H2-ready gas-fired power plants would be a serious mistake," said the VIK CEO. CHP plants are among the most efficient technologies and provide electricity and heat at the same time. H2-ready power plants require CCS in the transition phase as long as the hydrogen infrastructure is not yet available. "A special German ban would prevent investment," warns Seyfert.

Appeal from the industry

"Germany is at an industrial policy crossroads," Seyfert continues. "Either we create the conditions for CCS/CCU now - or we risk losing entire branches of industry abroad." The cabinet draft provides the necessary legal and planning certainty. Any tightening of additional requirements would jeopardize investments, climate targets and the future of energy-intensive industry in Germany.

Author: Susanne Harmsen