The German environmental and development organization Germanwatch has issued a stern warning against the growing political emphasis on carbon capture and storage (CCS) for gas-fired power generation, labeling it a “Costly Climate Mistake.”
In a new statement, the influential NGO argues that prioritizing natural gas plants equipped with CCS technology over the planned development of power stations ready for green hydrogen will incur greater long-term costs for the economy and the public. Germanwatch specifically condemns this policy shift for sacrificing the immense grid stability and decarbonization benefits that hydrogen-ready power can provide. The group asserts that the pivot risks embedding a more expensive and less flexible power infrastructure.
Instead, the government is advocating for a “technology-neutral” approach that includes investment support for carbon capture and storage (CCS) for natural gas-fired power generation.
Germanwatch argues:
The Germanwatch report directly challenges this pivot, labelling it a move that “will be a costly mistake” for Germany’s long-term interests.
The market reality:
Policy Shift: The new government is supporting a “technology-neutral” approach, which includes CCS investment in the power sector.
Insufficient Incentives: Germanwatch states that, given the current electricity market design and CO2 prices in Germany, market incentives are insufficient for the construction of either hydrogen-capable power plants or natural gas-fired power plants with CCS.
Subsidy Requirement: The NGO concludes that both pathways will require public subsidies in the foreseeable future.
Hidden Costs: Natural gas-fired power with CCS will come with hidden costs, making it economically less viable in the long run.
Missed Benefits: Germany will be missing out on the benefits of renewable H2 (green hydrogen) to back up the grid, a crucial element for a fully decarbonized energy system.
Fossil Fuel Extension: Germanwatch, in its broader critique of CO2 management policy, warns that a broad adoption of CCS for gas-fired power opens the door to a “permanent extension of fossil fuel business models”.
Energy Inefficiency: Historically, Germanwatch has highlighted that CCS is an “end-of-the-pipe technology” that diminishes a power plant’s energy efficiency, leading to higher fossil fuel consumption to produce the same net power output.
Germanwatch has urged the government to reconsider its approach, focusing instead on developing the infrastructure for renewable green hydrogen. This path, they argue, better aligns with a sustainable and resilient energy future.
