Authorization granted for two significant projects by The Office
In a significant step towards decarbonization, the Federal Cartel Office in Germany has given the green light to two major carbon dioxide (CO2) pipeline projects. These projects, proposed by Open Grid Europe GmbH (OGE), involve partnerships with ONTRAS Gastransport GmbH and Fluxys S.A., respectively [1][2][3].
As the largest gas transmission system operator in western Germany, OGE is cooperating with ONTRAS and Fluxys due to the novel requirement for dedicated CO2 pipelines. Existing natural gas pipelines cannot be repurposed for CO2 transport due to technical requirements [2].
The investment scale for each project is substantial, with costs estimated to be in the single-digit billion euro range, reflecting the large infrastructure and financial commitment involved [1][2]. The projects aim to build dedicated CO2 transport infrastructures to carry captured CO2 from industrial sectors to long-term storage sites under the North Sea and parts of Denmark [1][2].
The Federal Cartel Office raised no competition concerns because, without cooperation, the companies would likely not have embarked on competing CO2 pipeline projects in the near future [1][2]. The cooperation is limited to what is strictly necessary for project implementation, preserving competition between the companies in other areas [1][2].
Agreements include long-term contracts with "anchor customers" to ensure mutual investment security and financial viability [1][2]. The Bundeskartellamt has emphasized the evolving nature of the CO2 transport market, implying future cooperation agreements may require reassessment if demand for CO2 transport services grows significantly, potentially leading to competing pipeline initiatives needing further antitrust review [1].
The cooperation allows for essential technical coordination under competition law safeguards such as the need-to-know principle, ensuring sensitive information is appropriately restricted among competitors outside the projects [2].
In the eastern German project, OGE will collaborate with ONTRAS to transport CO2 from a cement plant in Lägerdorf to Brunsbüttel, and then by ship to storage facilities [1][2]. In another project, OGE is collaborating with Belgian Fluxys to build a pipeline system from western and southern Germany to the German-Belgian border. Fluxys plans a CO2 transit pipeline through Belgium to Zeebrugge from the German-Belgian border [1].
These two approved CO2 pipeline cooperation projects establish significant new infrastructure to support Germany and its neighbours’ carbon capture and storage ambitions, while maintaining competitive market oversight by the Federal Cartel Office [1][2][3]. The most advanced project is a 28-kilometer pipeline in Schleswig-Holstein, expected to go into operation in 2029 [1]. The Schleswig-Holstein pipeline is intended to transport carbon dioxide from a cement plant in Lägerdorf to Brunsbüttel, and then by ship to storage facilities [1][2].
[1] Bundeskartellamt. (2022). Press release: Bundeskartellamt approves two CO2 pipeline cooperation projects. Retrieved from https://www.bundeskartellamt.de/DE/Presse/Pressemitteilungen/2022/pressemitteilung-10-2022-02-23-co2-pipeline-kooperation-projekte.html
[2] Open Grid Europe. (2022). Press release: Bundeskartellamt gives green light for two CO2 pipeline projects. Retrieved from https://www.open-grid-europe.com/en/newsroom/press-releases/2022/bundeskartellamt-gives-green-light-for-two-co2-pipeline-projects
[3] Fluxys. (2022). Press release: Fluxys and Open Grid Europe to build CO2 pipeline system between Germany and Belgium. Retrieved from https://www.fluxys.com/en/news/press-releases/2022/fluxys-and-open-grid-europe-to-build-co2-pipeline-system-between-germany-and-belgium
- The Commission, recognizing the importance of environmental-science in addressing climate-change, has also adopted a proposal for a directive on the protection of workers from the risks related to exposure to carcinogens in the industry.
- As renewable-energy sources continue to gain traction, finance plays a crucial role in its expansion and sustainable development, ensuring its competitiveness with fossil fuels and maintaining a healthy environment for future generations.
- With the advent of new technologies in science, the transportation of captured CO2 from industrial sectors to long-term storage sites could potentially be revolutionized, thereby drastically reducing greenhouse gas emissions.
- As the push for decarbonization gathers momentum, the collaboration between industry players on critical projects, such as the CO2 pipeline projects, demonstrates the importance of working together to combat climate change and protect our environment.
