BCan CCS and CCU contribute substantially to reach “net zero”?
Current Situation in Germany and Japan
Martin Cames, Laura von Vittorelli | Zoom | 26/01/2022

Introduction: Economic aspects, utilization potentials,
GHG mitigation contribution, and environmental risks

CCS & CCU in Germany│Cames/von Vittorelli│Zoom│26/01/2022

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Option for CO2 storage

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Source: IPCC (2005)

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Potentials, risks, challenges● Potentials‒

Estimates for global storage capacity: 8,000 to 55,000 Gt CO2‒IPCC: storage capacity no limitation to scenarios with NET● Risks‒

Transport through: pipelines, trains, trucks, ships‒

Accidents during capture, transport and injections: emissions and victims‒

Leakage from reservoirs (0.003%/a): emissions‒Key to avoid leakage: good monitoring● Challenges‒

Capture, transport and injection require (renewable) energy‒Energy need increases with disproportionally with the capturing rate

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Germany: energy and climate policy background● 2019: Climate Change Act (CCA) adopted‒

Decarbonisation by 2050

‒Emission targets per sector● 2021‒

Constitutional Court requested review of the CCA since it was incompatible with the fundamental
rights of future generations‒

Old government advanced the decarbonisation to 2045 (see figure on next slide)‒Coalition agreement of the new government: increased targets●

Renewable energies: 80% (65%) of gross electricity by 2030●

Phase out coal power generation ‘ideally’ by 2030 (2038)●

Need of negative emission technologies for 5% of unavoidable emissions (cement, agriculture: 40-100 Mt CO2)

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Germany: greenhouse gas emissions by gas and reduction target

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Source: UBA (2021)

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Germany: cost ranges for capture, transport and storage● Dispersed source: 100-600 USD/t CO2

USD/t CO2
Total
Price range
Power plants
Iron & steel
CementBasic chemistry
Steam reforming
DAC low temperature (2030)
DAC high temperature

CCS & CCU in Germany│Cames/von Vittorelli│Zoom│26/01/2022

Low547673
4332
123117

High1421422117399248585‒

Negative emission technologies towards midcentury‒

Synthetic fuels in aviation and maritime
transport (heavy to abate sectors)● Point source: 32-211 USD/t CO2‒

CCS costs need to be added to production cost‒

Unlikely for power generation since renewableelectricity are becoming more and morecompetitiveSource: dena 2021

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Germany: renewable electricity generation● Levelized cost of renewable electricity already competitive with fossil● Expansion of renewables historically faster than forecasted

CCS & CCU in Germany│Cames/von Vittorelli│Zoom│26/01/2022

Sources: ISE (2021), WWF (2022)

8Germany: perception of CCS● CCS was discussed as lifetime extension for coal power plants (clean coal)● Large majorities of the population preferred decarbonisation strategies to be based on

renewable energies rather than fossil technologies● With coal phase out by 2030 CCS is being reconsidered as option to address unavoidableemissions
1) Reducing GHG emissions to the extent possible, particularly all CO2 from fossil source
2) CCS for heavy-to-abate point sources (cement, lime, etc.)
3) Compensating heavy to abate diffuse GHG emissions such as from agriculture through negativeemissions technologies● Focussed use for certain sectors● No significant contribution to 2030 targets

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Overview of political and regulatory Status Quoof CC(U)S in Germany and the EU

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International Framework – Law of the Sea● Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other

Matter (London Convention) and its Protocol (London Protocol)● Within Exclusive Economic Zone (200 nautical miles)● Allows sub-seabed storage● Permits must be issued, extensive obligations● Transport to other countries for CCS now permitted

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European and national framework: main laws

European
CCSDirective

National
CCS-Law

FederalCarbonStorage
Law

Storage
Laws ofFederal
StatesFederalImmission
ControlAct

European
ETSDirective

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Overview of the CCS-chain and regulations

Sequestration

FederalImmission
Control ActPermit
Environmental Impact
Assessment

Transport

FederalCarbonStorage Law

PermitEnvironmental Impact
Assessment

Storage

FederalCarbonStorage Law

Federal States‘
Storage Laws

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13Storage● EU- CCS Directive allows Member States to:‒ Say no to CCS all together or limit it‒ Sets a framework for sequestration, transport, storage● Federal Carbon Storage law sets three limits(1)

Amount of carbon stored(2)

Applications till end of 2016

(3)

Federal States can opt-out→ Most important federal states opted out of CCS

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EU ETS-Directive● CCS is included‒Stored carbon is considered “not emitted”● CCU only partially‒ Only PCC (preciptated calcium carbonate)→ Reform of the ETS-Directive

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Planned policies by EU● Carbon storage in CCS/CCU‒ By 2050 200 Mt industrial carbon removal with CC(U)S‒ By 2030 5 Mt annually of carbon from the atmosphere‒ Planned in 2022: Carbon removal certification guidelines(natural carbon sinks + technical solutions)‒ Update CCS guidelines (risk management, monitoring, financing)● Promote CCU‒ Changing the ETS-Directive‒ Fuel sector (Aviation ReFuelEU, Renewable Energy Directive)‒ Financing research projects

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Thank you for your attention!
Dr. Martin Cames
Head Energy & Climate (Berlin)
m.cames@okeo.de

Dr. Laura von Vittorelli
Researcherl.vonvittorelli@oeko.deOeko-Institut
Borkumstr. 213189 Berlin
Germany
CCS & CCU in Germany│Cames/von Vittorelli│Zoom│26/01/2022