Germany signs North Sea CO2 storage deals with Denmark and Netherlands

The German government has signed bilateral letters of intent with Denmark and the Netherlands to facilitate the export and storage of carbon dioxide (CO2) under the North Sea. This Carbon Capture and Storage (CCS) initiative aims to support industrial sectors with hard-to-abate emissions by capturing, compressing, and transporting CO2 via pipelines for permanent underground storage.

A key component of this plan is the proposed ‘Delta Rhine’ corridor, a cross-border pipeline system being planned by Open Grid Europe and Gasunie to transport CO2 from North Rhine-Westphalia to the Netherlands.

However, the strategy faces significant criticism from scientists and environmental groups. Experts from the Geostor research network argue that CCS could act as a ‘fig leaf’ for slowed climate protection by limiting the expansion of renewable energies. They also highlight economic and geological concerns, noting that CCS costs—estimated at 150 to 250 euros per tonne—far exceed current CO2 prices. Furthermore, recent calculations suggest that the available storage capacity in the German Exclusive Economic Zone may be significantly lower than previously estimated, dropping from 6 billion tonnes to between 0.5 and 1.5 billion tonnes due to competing uses like wind farms and nature reserves. Greenpeace has called for a revision of the national carbon management strategy, citing overinflated capacity projections.