Germany plans for Carbon Capture in Industry: emissions, potentials, costs – GWC Mag

In the first article of this series, Simon Göss and Hendrik Schuldt at carboneer gave the background to Germany’s new drive for carbon capture, and summarised the industrial sectors that will be its focus. Here, the authors analyse the emission profiles of German industries (in particular: steel, cement, lime, chemicals, waste incineration) and the associated CCS potentials and costs. The first thing to note is that it’s the process emissions (from the carbon-containing materials in production) that need to be captured, around 25% of the total. The remaining 75% comes from energy use and are to be abated using renewable energy. The authors also describe the infrastructure needed to transport, store or re-use the carbon. The first large-scale CO2 transport infrastructures in Germany must be ready by 2030. They note that for decentralised sites such as lime and cement plants, the most efficient way to handle captured CO2 has yet to be identified. The later articles in this series will look in more detail at the individual sectors.

Focus on industrial emissions

The energy sector, specifically electricity generation in coal and gas power plants, will most likely be excluded from any CCUS activities as the Carbon Management Strategy (CMS) of Germany is geared towards residual (hard-to-abate) and process-related emissions in the industrial sector.

Still, the energy sector is the largest contributor to German CO₂ emissions: in 2021 the energy sector emitted 238 Mt of CO_2, accounting for 35% of total CO2 emissions. Most of the emissions from existing coal and gas power plants are however expected to be replaced by renewable sources or green hydrogen utilisation, therefore limiting the scope for CCUS applications. Some potential however remains, mostly through CCUS applications in waste and biomass power plants.

Industry: 25% of total CO₂ emissions

The focus for CCUS activities will thus be on the industrial sector, the second largest contributor to CO₂ emissions in Germany. In 2021, industrial facilities were responsible for 168 Mt of CO₂ emissions, accounting for 25% of total CO₂ emissions. The largest share of industrial emissions originates from large installations that are subject to the EU Emission Trading System as well as from waste incineration facilities. These installations emitted a total of 137.8 Mt CO₂ in 2021 (cf. Figure 1), with largest contributions from steel production (31.5 Mt), waste incineration (23.3 Mt), cement production (20.1 Mt), the production of chemicals (16.9 Mt), and lime (6.4 Mt).

Capturing the process emissions

Three quarters of emissions in the industry are related to energy use and are to be abated using renewable energy. Approximately one quarter of the industrial emissions are process-related and originate from the utilisation of carbon-containing materials in production. Process-related emissions are difficult to avoid and the five major climate neutrality studies for Germany (see part I) highlight the significant role of CCUS for emission mitigation or CO₂-recycling in industry.

When calculating the CCS potential, it is important to notice that not all process-related emissions can be captured. Depending on industry and the dispersion of emission sources, the share of capturable emissions ranges from 45% in the chemical industry to 90% for waste incineration facilities. Following this methodology, the amount of technically capturable CO2 emissions from large industrial and waste incineration facilities in Germany amounts to 44.2 Mt (cf. Figure 2).

Considering economic feasibility and alternative technological pathways for decarbonisation, the ultimately relevant CCUS potential shrinks even further. While lime, cement, and waste incineration will need to capture CO₂ due to a lack of technological alternatives, the use of green hydrogen may be the primary decarbonisation route for steel production. The chemical industry will continue to depend on carbon-containing materials to produce basic chemicals, but might shift from fossil to biogenic and atmospheric sources, or build on recycled carbon from other industrial sectors. A more detailed analysis of the different sectors and their CCUS readiness will follow in future articles of this series.

Infrastructure and costs

To enable the transport of captured CO₂ to potential storage sites or consumers, suitable infrastructure is necessary. The development of CO₂ transport infrastructure is critical for the success of carbon management, and the pace of its development can significantly influence the entire progress of CCUS applications.

By 2030, the first large-scale CO₂ transport infrastructures in Germany are necessary, where the mode of transport will depend on the scale and intended use of the CO₂. Rail, trucks, ships, and pipelines can all be viable options. A pipeline connection is particularly useful for large industrial sites and CCUS clusters that generate significant amounts of CO₂ to be transported over longer distances to storage facilities.

However, for decentralised sites such as lime and cement plants, the most efficient handling of captured CO₂ has yet to be identified. Local production of synthetic fuels is one of the possible options. A country-wide CO₂ pipeline system connecting all major point sources is unlikely to develop, but pipelines for large industrial clusters will be necessary in the medium to long term. Furthermore, some oil and gas companies are already working on developing pipelines for exporting CO₂ generated in Germany to storage sites in the North Sea.

While CCS costs (including capture, transportation, and storage) are relatively homogeneous across sectors, the current unavailability of storage capacity within Germany makes pure CCS implementation relatively expensive (cf. Figure 3) when compared to a country such as the United Kingdom, which has better access to storage sites (e.g. the North Sea). High costs of approximately 200 EUR/t CO2 for CCS applications in Germany already point at the need for incentive and support mechanisms to bring carbon management to an industrial scale.

Storage in Germany?

Policymakers in Germany have to make the decision whether depleted natural gas reservoirs and saline aquifers in northern Germany and under the German North Sea are suitable CO₂ storage sites, or if exporting CO₂ through international collaborations and storing it in the North Sea and Norwegian Sea is a more politically acceptable option.

In the upcoming articles of this series, we investigate the attractiveness and readiness of the above industrial sectors for CCS applications based on indicators such as the regulatory framework, competing decarbonisation options and other sector specific characteristics.

This article is based on a study by carboneer for the Trade Commissioner Service of the Canadian Embassy to Germany.

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Simon Göss is Co-Founder and Managing Director at carboneer

Hendrik Schuldt is Co-Founder and Managing Director at carboneer

This article is published with permission

 

Sources:

CATF (2022) The cost of carbon capture and storage in Europe. Available at: https://​www.catf.us​/​ccs-​cost-​tool/​ (Accessed: 27 March 2023).

DEHSt (2022) Treibhausgasemissionen 2021: Emissionshandelspflichtige stationäre Anlagen und Luftverkehr in Deutschland (VET-Bericht 2021). Available at: https://​www.dehst.de​/​SharedDocs/​downloads/​DE/​publikationen/​VET-​Bericht-​2021.pdf​?​__blob=​publicationFile&​v=​7 (Accessed: 27 March 2023).

EEA (2022) Industrial Reporting database, May 2022, 7 March. Available at: https://​www.eea.europa.eu​/​data-​and-​maps/​data/​industrial-​reporting-​under-​the-​industrial-​6 (Accessed: 27 March 2023).