Legislation on Carbon Dioxide Storage in Germany expected to bolster exports of CO2 storage services

The German Federal Cabinet has approved a draft bill to amend the CO2 Storage Act, marking a significant step towards the industrial use and storage of carbon dioxide (CO2) in Germany. This legislative change is seen as laying the legal basis for the use of carbon capture and utilization, particularly in sectors like cement, lime, and waste incineration.

The proposed legislation does not allow for CO2 storage within marine protected areas in Germany. Instead, it authorizes storage sites for commercial offshore facilities for the geologic storage of CO2, excluding marine protected areas. This move aligns with Germany's commitment to sustainable practices and environmental protection.

One company set to benefit from these changes is Provaris Energy, which is involved in hydrogen and CO2 storage and transport projects, with a focus on supplying hydrogen to Germany. The law changes are "nicely timed" with Provaris Energy's Front-End Engineering Design (FEED) phase underway on a large-scale low-pressure Liquefied Carbon Dioxide (LCO2) tank. The tank project, supported by partner Yinson Production, targets demand for storage and injection in the Norway offshore sector, as well as the broader LCO2 shipping sector.

Another company that stands to gain from these legislative changes is Tree Energy Solutions (TES), a Green Energy company. TES and engineering firm Ramboll have completed a joint study for a planned CO2 export terminal at TES's Green Energy Hub in Wilhelmshaven, Germany. The CO2 export terminal at TES's Green Energy Hub is a planned project in Wilhelmshaven, and the joint study paves the way for pre-FEED work to begin later this year.

The proposed legislation in Germany facilitates exports and cross-border transport of CO2, particularly towards Norway. However, the search results do not provide specific information about which countries are being considered for CO2 transport and export under the planned amendment of the German CO2 Storage Framework Act.

Before the law comes into force, both the Bundestag and the Federal Council must approve it. The law initially facilitates export, but it remains to be seen how the establishment of CO2 pipelines and storage capacity within Germany will unfold. Nonetheless, these changes mark a significant stride towards a more sustainable future for Germany and its neighbours.