Brüderle and Röttgen: CCS act an important step for a future technology

In Berlin today, Federal Economics Minister Rainer Brüderle and Federal Environment Minister Norbert Röttgen presented key elements of the joint draft act on the demonstration and application of technologies for the capture, transport and permanent storage of carbon dioxide (CO2). With this draft act, the German government has opted for a gradual approach to the further development of the respective technologies. For the time being, therefore, the draft act only permits testing and demonstration of storages. The state of development of the technologies will be thoroughly evaluated in 2017. With this approach, the German government takes into account the remaining open questions regarding the new technologies, and the many concerns of the public.

Environment Minister Röttgen commented: "The draft act sets a legal framework for testing CCS technology. This is an important contribution to ensuring better climate protection in Germany as an industrial location. We will proceed step by step and take the concerns of the public very seriously."

Economics Minister Brüderle stated: "Climate protection is a global task. Due to an increasing world population and rising energy demand, developing and newly industrialising countries will not abandon the use of fossil energy sources at any time soon. CCS is therefore a necessary technology, since billions of tonnes of CO2 will have to be permanently disposed of in the decades to come. By agreeing on the draft act, we are giving German industry the opportunity to swiftly develop this key technology and use new export opportunities worldwide."

Testing CCS systems opens up an important perspective for climate protection because throughout the world coal-fired power plants will continue to form the backbone of electricity production for decades. CCS also offers prospects for low-carbon industrial production, since steelworks and chemical plants will never be able to operate without emitting some CO2.

Based on the highest environmental standards, the draft act specifies requirements for exploration and storage, operator liability, protection of stakeholders and long-term aftercare. This allows for comprehensive testing of the technology while at the same time excluding risks or negative impacts on the environment.

After being suspended in summer 2009, the draft act has undergone a substantial revision. New provisions include:

• Restriction of storage to testing and demonstration purposes: Storage facilities may only be licensed if the application for the license is filed by the end of 2015 and the annual storage volume per facility does not exceed 3 million tonnes, and the overall volume nationwide does not exceed 8 million tonnes of CO2 per year.
• Evaluation: The act will be thoroughly evaluated in 2017. To this end, the federal government will prepare a report for the German Bundestag. If the report is positive, CCS may be used on a larger scale.
• Highest level of precaution: In all demonstration storage facilities, precautionary measures must be taken against negative impacts on human beings and the environment according to the state of the art in science and technology.
• Effective safeguards against potential long-term risks by the operator: Setting aside funds for aftercare from the first tonne stored.
• Other potential uses for underground sites, for example for geothermal energy production or as energy storage, are given even greater consideration.
• If land must be accessed or used for exploration, better protection of the rights of land owners is ensured.
• In line with constitutional provisions, municipalities affected are to receive financial compensation.

The draft act will now be deliberated within the federal government. The Länder and associations will also be involved in this process. The act will then be voted on by Parliament. The final decision is expected at the end of this year.