Molecule Transition in Focus: Bundestag Adopts Key Steps for CCS and Hydrogen

• The carbon dioxide storage act lays the foundation for CCS and carbon management as climate protection technologies.
• The hydrogen acceleration act sets the pace, but projects and targets remain unclear.
• Kehler: “Both laws are crucial building blocks for a future-proof energy supply. Without the right framework conditions, however, the progress will fizzle out.”

The Bundestag yesterday passed the amendment to the Carbon Dioxide Storage Act (KSpG) and held the first reading of the Hydrogen Acceleration Act (WassBG). The Bundesrat still has to comment on both laws, but resistance is not expected. Even now, however, the German Association of the Gas and Hydrogen Industry sees these as pioneering steps for the role of molecules in the energy transition and as important framework conditions for German industry.

With today’s decision on the Carbon Dioxide Storage Act, the capture, transport, and storage of CO₂ in Germany has been legalized. Together with the Hydrogen Acceleration Act, this places molecules alongside electrons at the heart of energy legislation. “With the legalization of CCU/S and the Hydrogen Acceleration Act, the molecule transition is now also gaining momentum. These are key building blocks for a future-proof energy supply and the defossilization of industry,” explains Dr. Timm Kehler, Chairman of Die Gas- und Wasserstoffwirtschaft. “Now we must establish the right framework for infrastructure, financing, and market development — otherwise the progress will fizzle out.”

Carbon Dioxide Storage Act: Foundation Laid, but the Market Needs Guidance

The amendment to the Carbon Dioxide Storage Act creates the formal basis for Carbon Capture and Storage (CCS) in Germany. The association welcomes the fact that CCS will now also be permitted at gas-fired power plants — a demand particularly important for industrial power generation. “The political catch-up race is beginning: CCS was long taboo in Germany, but it is now being seen for what it is — a climate protection technology and a necessary complement for the climate-neutral transformation of our industry. Moreover, it is the foundation for low-carbon hydrogen,” says Kehler.

However, the real work starts now: “We need a pragmatic investment framework, swift adoption of the amendment to the Offshore Disposal Act, and ratification of the London Protocol so that CO₂ transport infrastructures for cross-border transport and storage can be approved and built. A carbon management strategy is also essential — one that supports the development of this new market without stifling it through overregulation. There is much to learn from our European neighbors in this regard.”

Hydrogen Acceleration Act: A Tool Without a Workpiece

The association also fundamentally welcomes the Hydrogen Acceleration Act. It establishes a framework to speed up the permitting process for hydrogen projects and new storage facilities. “The law is an important tool — but we still lack the workpiece. Due to missing funding instruments, investments in hydrogen facilities have stalled. It remains unclear which concrete projects can actually be accelerated by this law,” says Kehler.

The association also criticizes the fact that the previous target of 10 gigawatts of electrolysis capacity has been dropped without replacement. “Suppliers and project developers need clear perspectives. If lawmakers are serious about sector coupling, they must set new targets. Measures such as a green gas quota could also help stimulate demand,” Kehler adds.

European Framework for Investment Incentives Urgently Needed

Both laws demonstrate that the federal government recognizes the interplay between electrons and molecules as essential for achieving the energy transition cost-effectively. To turn these advances into a competitive advantage, Germany must also assert its interests actively at the EU level.

“We need investment-friendly regulations for CCU/S and low-carbon hydrogen at the European level. Only then will companies be willing to invest in infrastructure, storage, and facilities,” emphasizes Kehler. The association expresses its readiness to support policymakers in shaping the next steps and to contribute its expertise to the development of transport and storage infrastructure.