Establishing a Framework for the CO₂ Economy
Utilizing CO₂ as a Raw Material Requires Infrastructure and Regulations – the Course that Policymakers Need to Set Now
The development of CO₂ cycles in Germany and Europe remains in its nascent stages. Alongside industrial advancements and investments in new facilities, the establishment of technical infrastructure and regulatory frameworks is pivotal for successful progress. Political decisions play a central role in determining the trajectory of the CO₂ economy.
Efforts are underway at various levels of governance – federal, state, and EU – to set the stage for utilizing CO₂ as a raw material. The European Commission has drawn up a draft, called "Industrial Carbon Management" strategy aimed at laying the groundwork for a European CO₂ internal market, including plans for CO₂ transport infrastructure. The German government is formulating a "Carbon Management Strategy" to promote carbon capture and storage (CCS) or utilization (CCU). The state government in Schleswig-Holstein, where Lägerdorf is located, advocates for further CCU and CCS development in its Climate Protection Program 2030.
Policymakers across all levels acknowledge the necessity of these technologies in achieving climate protection objectives. Holcim applauds and supports these political initiatives. These are developing the framework for the CO₂ market in Germany and Europe, which we at Holcim also need in order to be able to produce climate-neutral cement in our plants. Such large-scale technological innovation projects demand years of effort, substantial investments, and thus require dependable framework conditions alongside the readiness to translate new ideas into practical applications through updated regulations.
The significant groundwork remains. Legal certainty for CO₂ trading and transport, as well as the requisite infrastructure for CO₂ transport, interim storage, distribution, and processing, are currently lacking. There is also a lack of the necessary infrastructure for the transport, intermediate storage, distribution and processing of CO₂. This also requires a regulatory framework as well as fast, targeted procedures and authorisations for the respective infrastructure projects.
Ship terminals, pipelines, regulations
Establishing these prerequisites swiftly is imperative to promptly achieve ambitious climate targets. Schleswig-Holstein aims to be the first federal state to achieve climate neutrality by 2040, the German government is aiming for climate neutrality by 2045, the EU by 2050.
At first glance, this looks like a long time horizon. the development of technologies. But technologies must be developed, projects planned, approved and built – in order to achieve the long-term goals, accelerating the pace now is essential.
For the utilization of CO₂ as a raw material and the establishment of a CO₂ market with closed-loop CO₂ cycles, it is paramount to establish the necessary legal framework for CO₂ transport.
CO₂ hubs will serve as the cornerstone of the technical infrastructure. According to projections from the EU Commission, significant quantities of CO₂ will need to be utilized in the long term – amounting to several hundred million tons per year.
Given the scale of these quantities, maritime transport will be indispensable, offering greater efficiency compared to road or rail transport. To facilitate this, CO₂ terminals will be essential along the coast, enabling ships to load CO₂ and dock at designated ports of call. These terminals are akin to LNG terminals used for the transportation of liquefied natural gas.
Intermediate storage facilities will be imperative at the hubs to manage supply fluctuations and securely store CO₂ until it is transported to the end user. For swift and environmentally sustainable transport, pipelines connecting to the hubs present a viable solution.