Germany Approves CO2 Storage Law and Expands Hydrogen Infrastructure with Significant Investments

In November, the German Bundestag approved an amendment to the CO2 Storage Act, allowing the capture, transport, and storage of CO2 from industrial emissions in the North Sea continental shelf. The Industry Decarbonization Program, initiated by the BMWK, allocates €6 billion for industrial transition investments.

Germany plans to construct 3,000 to 4,000 kilometers of pipelines by 2035, with estimated costs ranging from €3 to €10 million per kilometer. The total investment could reach €30 billion. Additionally, the national hydrogen strategy includes a 400 km segment of a planned 9,040 km hydrogen network, transporting green hydrogen from the northeast to the south.

This project is expected to cost around €19 billion, with local consumers bearing the expenses through network charges. Concerns about the availability of hydrogen and the potential need for ongoing subsidies have been raised.