Can Europe’s Industrial Heartland Become a Carbon Valley?

Highlights

• Industrial clusters in Europe could become a future carbon valley, capturing and reusing CO2 instead of releasing it.
• 130 million tonnes of CO2 are expected to be emitted by industries in 2050, which creates challenges and opportunities for CCS and CO2 utilisation.
• Fertiliser, food, and chemical industries may rely on CO2, but current EU policies favour underground storage over reuse.

Europe’s industrial regions, particularly the Rhineland in Germany, are being considered as the future hub of a carbon valley.

This idea builds on the earlier hype around hydrogen valleys, where industries aimed to create hydrogen-based industrial clusters. However, as hydrogen projects have struggled to meet expectations, attention is shifting towards carbon capture and storage (CCS).

In this model, instead of releasing carbon dioxide into the atmosphere, industries would capture, store, or reuse carbon dioxide (CO2) as a resource.

The reason this concept is gaining momentum is that industrial processes such as cement, glass, paper, and chemical production will continue to emit large amounts of CO2 well beyond 2050.

Read More: UK Firm Turns Captured CO2 into Materials for Roads, Buildings

According to research by Frontier Economics, at least 130 million tonnes of CO2 will still be produced annually, and if emissions from biomass are included, the figure could rise to 660 million tonnes.

Since much of this CO2 will be concentrated in Europe’s industrial heartland, the region could serve as the ideal location for a future carbon valley.

For a carbon valley to work, there must be industries ready to utilise CO2. Several sectors already depend on it. The fertiliser industry needs CO2 to produce urea, while the food and beverage sector uses it for greenhouses and carbonated drinks.

Also, CO2 can be used in building materials and biotechnologies. Having a steady supply of CO2 from large emitters could make these industries more secure over the long term.

However, the biggest challenge lies in economics and policy. Current EU climate rules make permanent CO2 storage underground more cost-effective than reusing it for chemicals or fuels. This is because companies must buy carbon certificates to cover emissions, costing over €70 per tonne and likely to rise above €100.

Also Read: Global Airlines Invest in Direct Air CO2 Removal Technology

Storing CO2 helps companies avoid these costs and provides lasting climate benefits, whereas turning CO2 into fuels only delays emissions, since the carbon is eventually released when the fuel is burned.

In summary, the idea of Europe’s carbon valley is attracting interest as industries explore paths to manage emissions. But its success will depend on whether policy incentives and market demand make CO2 utilisation as appealing as permanent storage.

Ends/

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Source: Euractiv