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Released on Monday, April 18, 2011

Power

Germany Turns to Carbon Storage Following Japanese Nuclear Disaster

Germany's government has revived plans to support carbon capture and storage (CCS) projects as the country prepares to hasten its exit from nuclear power.


Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Germany's government has revived plans to support carbon capture and storage (CCS) projects as the country prepares to hasten its exit from nuclear power.

The German Environment Ministry said that it has agreed a draft bill that will create the regulatory framework needed for German CCS demonstration projects to become eligible for vital funding from the European Union. The storage of carbon is a volatile topic in Germany, where previous attempts to introduce a bill have been hampered by objections from numerous German states that are concerned about potential carbon leakage from underground storage locations. The new draft bill has granted concessions that will allow states the power of veto over the final decision on plans to store carbon in their regions. The proposed regulatory framework will give confidence to German energy companies and investors looking to invest in CCS projects.

Industrial Info is currently tracking 14 key carbon capture and storage projects in Europe in its International Power Industry Project Database.

"Recent developments in energy policies have made it clear once again what efforts we need to ensure a sustainable, environmentally-friendly, safe and economical energy supply," commented Economy Minister, Rainer Bruderle. "Emerging technologies play a key role ... and I'm convinced that CCS offers significant future opportunities. CCS is an important part of the global carbon dioxide reduction strategy, so it is good that we facilitate the testing and demonstration of CCS, in order to demonstrate the economic viability and sustainability of this important technology."

In the wake of the ongoing disaster at the Japanese Fukushima Daiichi nuclear power plant, Germany's pro-nuclear government is looking increasingly like it will pull a U-turn on its decision last November to allow older nuclear plants to operate for up to 14 years longer than planned. Last month, following the explosions at Fukushima Dai-ichi, the government ordered the closure of the country's seven oldest nuclear plants for a period of three months in order to assess their safety. For additional information, see March 28, 2011, article - German Nuclear Plants Begin Shutdowns. However, the future of those plants remains in doubt, as the government is now leaning toward a faster-than-planned exit from nuclear power.

Today, Germany has 17 reactors, which supply approximately 25% of Germany electricity demand. Last November, the government overturned a previous government's long-standing decision to phase out nuclear power in Germany by 2022. For additional information, see November 2, 2010, article - German Parliament Backs Extending Lives of Nuclear Power Plants.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
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