Policy Impulse

Carbon Management as the 3rd pillar of decarbonization

CO2 is omnipresent — in the atmosphere, in political debates and in the future of our industries. The current OGE Policy Impulse is dedicated to this central topic. In order to achieve the German government’s goal of becoming CO2-neutral by 2045 and at the same time secure our economy, a flexible approach to this greenhouse gas is necessary.

Energy-intensive sectors, such as the basic chemicals, steel and cement industries, cause emissions that are difficult to avoid (“hard-to-abate”). This is where carbon management comes in: Carbon Capture and Storage (CCS) or Carbon Capture and Utilization (CCU) can be used to capture, store or reuse CO2.

As a gas network operator, OGE plays a key role in the transportation of CO2 for storage or use. With our experience in the construction and operation of gas infrastructures, we make an important contribution to the CO2 value chain. Politicians are creating the necessary framework conditions for this.

In a total of three issues, we shed light on various aspects of the carbon management value chain. This issue provides an insight into the CO2 network infrastructure: Martin Frings, Team Lead Carbon Management at OGE, talks about CO2 transportation by pipeline. We also discuss political measures to move from talk to action.

CO2 Pipeline Infrastructure creates the important connections for Carbon Management

A reliable and well-developed pipeline infra­structure is crucial for advancing carbon management. It is the basis for integrating hard-to-abate emissions from basic industries such as basic chemicals, iron and steel production or the cement industry into the CO2 cycle. A McKinsey analysis shows the potential of CCS/CCU technologies for Germany's climate targets: around 150 Mt of CO2 could be saved annually through capture in these industries — around a quarter of Germany's current emissions.

CO2 Capture

Capture of CO2 e.g. from plants in the cement, lime, chemical or steel industry as well as waste incineration or directly from the air.

CO2 Transport

The captured CO2 is transported safely and efficiently, for example by pipeline in a CO2 transport network to the place of use or storage.

CO2 Utilization

The captured CO2 is used as a resource or raw material for the manufacture of products.

CO2 Storage

The CO2 is safely stored permanently in deep layers of rock, e.g. under the sea.

The CO2 Transport Grid from OGE

OGE is involved in several CO2 transport projects in the carbon management value chain. These include the WHV CO2 Corridor, the Delta Rhine Corridor, the North Sea CO2 Corridor, the DK CO2 Corridor and the Elbe estuary cluster. The aim is to quickly develop export options in Wilhelmshaven, Rotterdam and Antwerp/Zeebrugge to the corresponding CO2 storage sources in neighboring countries.

A market survey of potential customers from the cement, lime and steel industries shows that the infrastructure needs to be completely rebuilt. Existing natural gas pipelines are not suitable for transporting CO2. We are therefore linking CO2 sources — for example from the cement and lime industries — with customers such as the chemical industry or export hubs at important port locations.

Policy and Carbon Management: hand in hand for compe­ti­tive­ness and resilience

The first projects are ready, but decisive legal foundations are still missing. These include the amendment of the Carbon Dioxide Storage Act (KSpG) and the ratification of the London Protocol to transport CO2 to storage sites in partner countries such as Belgium, Denmark, Norway or the Netherlands. These regulations are essential to efficiently implement decarbonization projects of companies such as Holcim, Lhoist, Heidelberg Materials and the steel, chemical and waste industries and to ensure the competitiveness of the German raw materials industry.

The next step is to define a suitable investment and funding framework. Currently, CCU/S projects must independently secure the entire value chain. A combination of private investment and government guarantees would be a possible way to drive the necessary infrastructure for carbon management — especially given the current budget situation.

The amendment to the KSpG must therefore be implemented quickly so that the industrial location remains competitive, and the raw materials industry can contribute to resilience!