Germany eyes blue hydrogen as cabinet backs CCS

Draft law opens door to large-scale carbon capture and storage, and could unleash investment in gas-based hydrogen projects

Germany’s cabinet has adopted draft legislation allowing the widespread deployment of CCS and CCUS, in a move that could spur investment in blue hydrogen production. The draft law, which will need to be debated further before final adoption, also allows for CCS to abate gas-fired power plants, which the government accepts will continue to play a key role in the energy mix despite the rapid expansion of the country’s renewables sector. CCS for coal-fired power plants is ruled out. The draft law calls for the expansion at pace of a CO₂ pipeline network and allows for the development of onshore CO₂ storage, as well as offshore facilities. “This law has created the possibility of producing blue