Germany Bioenergy Carbon Capture & Storage Market Research Report: Forecast (2024-2030)

Market Definition

Bioenergy carbon capture storage is a method of removing carbon dioxide emissions from the environment with the combination of combusting bio-energies, such as agriculture residue, forestry residue, energy crops, etc., and further capturing the carbon dioxide directly from the source and storing it in specialized storage spaces, such as deep underground in depleted oil & gas reservoirs, aquifers, etc. This technique helps mitigate carbon dioxide emissions in the atmosphere and the potential use of carbon energy post-refining the stored CO2 as a feedstock in quite a few industrial processes.

Market Insights & Analysis: Germany Bioenergy Carbon Capture & Storage Market (2024-30):

The Germany Bioenergy Carbon Capture & Storage Market is estimated to grow at a CAGR of around 14.25% during the forecast period, i.e., 2024-30. The factors attributing to the increase in demand for bioenergy carbon capture & storage are snowballing government funding programs to support the deployment of carbon capture & storage technologies, including BECCS, and rising focus on reducing carbon emissions. Germany has committed to ambitious climate goals, including significant reductions in greenhouse gas emissions. According to the Organization for Economic Co-operation and Development (OECD), the government of Germany has set an economy-wide emissions reduction target of at least 65% by 2030 and at least 88% by 2040.

Therefore, to attain these targets, the government of Germany is encouraging the adoption of BECCS technology, which removes carbon dioxide from the atmosphere, thereby helping the country transition to a low-carbon economy. Moreover, with its Climate Action Programme 2030, the Federal Government has agreed to the funding program ‘CO2-Vermeidung und -Nutzung in Grundstoffindustrien’, which further supports the use of CCS technologies in primary & secondary industries, driving market growth.

Furthermore, the country has a notable manufacturing sector that caters to both domestic as well as export demand and has presented itself as a key revenue-generating sector. Automobile, chemicals, pharmaceuticals, heavy engineering, etc., are the main industries that are also responsible for considerable amounts of carbon dioxide emissions.

Even though the industrial emissions have been continuously decreasing year-on-year, the average of about 15% is contributed by the sector to the overall Germany’s carbon emissions. Hence, indicating a long way for the sector to become carbon neutral. Nonetheless, the positive attitude of the country toward integrating low carbon emitting & mitigating technologies would further sustain the market development in the upcoming years.

Germany Bioenergy Carbon Capture & Storage Market Driver:

Rising Greenhouse Emissions & Climate Change Fostering Market Growth – Germany has been reliant on coal for a significant portion of its energy production. The country has several coal-fired power plants, like Bexbach Power Station, which play a notable role in the country's energy mix. These power plants emit carbon dioxide when coal is combusted for electricity generation. As a result, the energy sector is among the major contributors to increasing carbon emissions in the country. According to the Government of Germany, the emissions in the energy sector surged by 4.4% in 2022 compared to 2021.

In addition, the country has a strong industrial base, and industries, such as steel & chemicals contribute significantly to carbon emissions & climate change. Therefore, to mitigate climate change & reduce carbon emissions, the government of Germany is transitioning towards renewable resources & facilitating the adoption of Bioenergy Carbon Capture & Storage, driving market growth.

Germany Bioenergy Carbon Capture & Storage Market Opportunity:

Substantial Supply of Biomass Resources – Being the favorable geographical setting of the nation, Germany possesses almost one-third of forest land and nearly half of agricultural land, as per the International Energy Agency. Straw, stalks, animal manure, etc., have been the primary agricultural waste generated in Germany. Additionally, more than 50% of the renewable energy in the country comes from biomass. Along with this, the government’s National Biomass Strategy is expected to create passage for better use of biomass in supporting the carbon emission reduction targets of 2030 and 2045. Thus, the vast resources of biomass and a high inclination to use of biomass as a key energy source are predicted to enhance the market revenues in the forecast period as well.

Germany Bioenergy Carbon Capture & Storage Market Challenge:

Requirement for High Upfront Capital & Technical Complexity Hinders the Adoption of BECCS – The need for sizeable investments for the smooth synthesis of traditional energy use with BECCS at different manufacturing sites, and power plants has been an important factor delaying the adoption of BECCS. Since the BECCS is a critical infrastructure it necessitates both high capital cost and operational cost for regular maintenance and upkeep.

Germany Bioenergy Carbon Capture & Storage Market Trend:

Advances in Membrane Technologies for Separating Carbon Dioxide from Flue Gases Gaining Traction – Membrane Separation technology has been gaining traction in the carbon capture and sequestration process compared to traditional liquid amine absorption. Also, studies have been conducted and proved better efficiency membrane technology in iron & steel, cement, and pulp & paper industries. According to World Steel, Germany is amongst the top ten largest steel producers across the globe. Thus, indicating a growth prospects for membrane technology in the market.

Germany Bioenergy Carbon Capture & Storage Market (2024-30): Segmentation Analysis

The Germany Bioenergy Carbon Capture Storage Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the global level. In accordance to the analysis, the market has been further classified as:

Based on Feedstock:

• Energy Crops
• Industrial & Municipal Waste
• Agriculture Residues & Waste
• Forestry Residues

In Germany, Agricultural Residues & Waste are readily available in large quantities as byproducts of crop cultivation. These residues include materials like crop stalks, straws, husks, and other biomass waste generated after the harvest season. By using agricultural residues for bioenergy generation, the carbon dioxide released during combustion is captured and stored (BECCS). Thereby, helping in mitigating greenhouse gas emissions, as the captured carbon offsets the emissions produced during energy generation.

Based on End Users:

• Waste-to Energy Power Plants
• Biofuel & Bio-Hydrogen Production Facilities
• Bio-mass Fuelled Industries
  • Cement
  • Pulp & Paper
• Others

The government of Germany is strongly accentuating resource efficiency and waste management by implementing policies & regulations that prioritize recycling, waste reduction, and energy recovery from waste. As a result, there are a significant number of Waste-to-Energy (WtE) plants. Till 2017, Germany had a capacity of nearly 20 million tons through about 68 waste incineration units. Through these waste incineration facilities, the country has been able to only land a minimal share of the total municipal waste in landfills, which the government authorities are aiming to fully reduce in the coming years.

These plants typically emit carbon dioxide during the combustion of organic waste to generate electricity or heat. Owing to this, Bioenergy carbon capture and storage (BECCS) are integrated to capture and store a significant portion of the CO2 emissions from this combustion process, contributing to carbon mitigation efforts. This method also helps the nation in achieving its circular economy targets and simultaneously fostering the BECCS market growth too.

Germany Bioenergy Carbon Capture & Storage Industry Recent Development:

• 2023: Aker Carbon Capture was offered the feasibility study of CCS at a Biomass Combined Heat and Power facility in Germany, with the aim of capturing and storing about 250,000 tons of carbon dioxide per year.

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