VDZ press release dated 18 March 2024:

When it comes to decarbonising the cement and lime industry as well as waste incineration, there is no way around CO₂ capture, storage and utilisation, given the high proportion of unavoidable CO₂ emissions. “The development of a CO₂ infrastructure in Germany is essential for these industries,” said Christian Knell, President of the German Cement Works Association (VDZ). And time is pressing: cement manufacturers and other industries in the EU emissions trading system must produce largely climate-neutrally by 2040. “For this, companies need a CO2 pipeline network by 2035 at the latest,” Knell continued. In a study, the VDZ examined what a German CO₂ pipeline network could look like and what requirements arise for the CO₂ infrastructure.

With the study published today, “Requirements for a CO₂ Infrastructure in Germany – Prerequisites for Climate Neutrality in the Cement, Lime and Waste Incineration Sectors”, the VDZ presents the expected unavoidable CO₂ emissions and analyses how the short-, medium- and long-term CO₂ transport needs in the three sectors will develop and how a CO₂ infrastructure should be designed.

Crucial for the transport demand is the timeline of CO₂ capture development. “Many cement manufacturers are ready to launch their CO₂ capture projects – what is missing is the national legal framework and a suitable transport infrastructure,” emphasises VDZ Director General Dr. Martin Schneider.

In the central scenario of the study, achieving climate neutrality in the three sectors under consideration results in an annual CO₂ transport demand of 6.5 million tonnes in 2030, approximately 13 million tonnes in 2035 and around 35 million tonnes in 2040. The total volume increases to 46 million tonnes by 2045, as the biogenic share of CO₂ will also be captured beyond that point, ultimately achieving even negative emissions. Additional volumes for transit from the neighbouring countries Austria, Switzerland and France must furthermore be taken into account from 2035, amounting to 15 to 20 million tonnes of CO₂ per year.

Through the rapid development of a CO₂ pipeline network by 2035 at the latest, cumulative CO₂ savings of around 500 million tonnes of CO₂ over 20 years are possible in the sectors under consideration. Notably, in the event of a significantly delayed start to pipeline transport, only cumulative savings of approximately 230 million tonnes of CO₂ could be realised. In this case, around 270 million tonnes of CO₂ would additionally be released into the atmosphere and climate neutrality by 2045 would not be achieved.

The analysis makes clear that in the medium and long term, the majority of CO₂ transport must be carried out by pipeline, given the volumes to be expected. “The early development of a CO₂ pipeline network is crucial for this. There are already initial project announcements from network operators, on the basis of which the present study outlines a perspective for a nationwide CO₂ network in Germany,” explains Manuel Mohr, project manager of the study at the VDZ. In certain cases, however, rail and possibly shipping will also play a relevant role, as the scenarios considered demonstrate.

Each of the transport options entails different technical requirements, which directly impact the economics of the transport chain. Another key factor is the timely connection of sites to the CO₂ infrastructure. Particularly for rail and shipping transport, considerable investments in loading infrastructure at the sites are also required.

For the rapid development of CO₂ capture over time, the required capacity of CO₂ sinks is a key factor alongside CO₂ transport. Currently, numerous storage projects are being planned and developed in other European countries, meaning that significant storage capacities can be expected from the 2030s onwards – provided these are implemented as planned. “Germany is also called upon to contribute to the development of a European storage infrastructure and to take responsibility for its own CO₂ emissions. The draft Carbon Dioxide Storage and Transport Act (KSpTG) is promising in this regard, as it is intended to enable offshore storage in Germany and pipeline transport,” said Schneider.

The VDZ study estimates the investment required for the development of the identified German CO₂ pipeline network, with a total length of 4,800 km, at around 14 billion euros. This results in calculated costs for pipeline transport of 25 to 35 euros per tonne of CO₂. For CO₂ transport by rail over distances of more than 500 km, costs of 35 to 60 euros per tonne of CO₂ are expected. For shorter transport distances, these costs may also be lower.

In addition to the development of the infrastructure, energy requirements are also considered. “CO₂ capture is generally very energy-intensive. As a result, the demand for renewable energy for climate-neutral cement and lime production will increase to almost four times the current level – from 4.7 TWh to around 17 TWh in 2045,” emphasises Schneider. The thermal energy demand in the three sectors will increase by just under 100,000 TJ, or 20%, compared to the current status quo.

“The development of a CO₂ infrastructure is not merely a technical challenge. The decisive prerequisites are above all societal and political support as well as the necessary legal framework for rapid implementation. This must be in place by the end of 2024 at the latest, if the CO₂ capture projects in the industries are to be implemented as planned,” emphasises VDZ President Knell.

The complete VDZ study “Requirements for a CO₂ Infrastructure in Germany” is available for free download at https://www.vdz-online.de/co2-infrastruktur.