How CCS Opens New Opportunities for the Pipeline Industry

Carbon Capture and Storage (CCS) represents a widely debated methodology for managing CO₂ emissions across industrial sectors. While proponents view CO₂ capture and sequestration as a viable pathway toward decarbonization, critics point to the substantial costs and environmental risks inherent in the process. CCS is also relevant to the emerging hydrogen economy: "Blue" hydrogen is produced by capturing the CO₂ generated during conventional H₂ production. This approach aims to provide hydrogen not only cost-effectively but, more importantly, at scale and speed. However, how exactly does CO₂ arise during H₂ production, and how can it be transported and stored? For the pipeline industry, this question is of paramount importance, as CO₂ pipeline transport opens new market opportunities.

Fossil hydrogen production is extremely CO₂-intensive (© Yellow Boat – stock.adobe.com)

Conventional hydrogen production from natural gas generates approximately 9-10 tons of CO₂ per ton of hydrogen. This CO₂ must be captured, transported, and stored to transform "gray" hydrogen into "blue" hydrogen. Many experts characterize blue hydrogen as a transitional solution or bridge technology. The underlying concept: Until substantial capacities for renewable or "green" hydrogen production become available, blue hydrogen can be utilized to populate hydrogen transport infrastructure, such as the core network, at an early stage.

For certain stakeholders, its role extends beyond this transitional function: They envision blue hydrogen as an ideal baseload supplier for decarbonized industrial processes and thus as an integral component of the future energy system. Nina Scholz, Country Manager Germany at Equinor, stated at the BDEW Congress 2025: "Blue hydrogen is available 24 hours a day, 7 days a week. The CO₂ footprint is not zero, but most can be captured – we're talking about 95 to 98 percent capture rates, with only 2 to 5 percent remaining."

The significant interest in blue hydrogen amplifies the already substantial interest in CCS. The topic was previously addressed in an article published in early October (https://www.wire.de/de/Media_News/News/Themen/Dekarbonisierung_und_Wertsch%C3%B6pfung_Weichen_f%C3%BCr_CO2-Transport_sind_gestellt). The following analysis therefore focuses primarily on CCS's role in hydrogen scale-up.

Steam reforming with partial oxidation, CO conversion, and carbon dioxide absorption (© Wikipedia Creative Commons)

Technical Fundamentals: Where Does CO₂ Originate in Hydrogen Production?

Blue hydrogen production is based on steam reforming of natural gas, the globally dominant process for hydrogen generation. In this process, natural gas reacts with steam at high temperatures. The critical aspect: This process inevitably produces CO₂ – and in substantial quantities.

The advantage for CCS technology: The CO₂ is generated in highly concentrated form, which facilitates capture and makes it more economical than in many other industrial processes.

CO₂ can be transported more cost-effectively and rapidly through pipelines than in liquid tanks. (© Reinhard Tiburzy – stock.adobe.com)

CCS Integration: From Capture to Storage

Following hydrogen production, CO₂ exists in two primary streams: a concentrated stream from gas processing and a more diluted stream from combustion processes for heat generation. In modern hydrogen facilities, pressure swing adsorption (PSA) primarily handles CO₂ separation. PSA actually serves hydrogen purification, achieving H₂ purity of 99.9%. As a "byproduct," this creates a CO₂-rich exhaust stream.

For blue hydrogen production, CO₂ must be captured from both this exhaust gas and the flue gases generated during natural gas combustion. Various processes can be employed, utilizing specialized membranes or chemicals (amine washing). Following capture, the CO₂ is compressed and prepared for transport. The most common method is liquefaction, which dramatically reduces CO₂ volume.

Multiple transport options are then available – from tanker ships and rail cars to trucks. Alternatively, CO₂ can be compressed and transported in gaseous form through high-pressure pipelines. However, this approach remains uncommon for regulatory reasons, particularly in Germany, where legislation enabling CO₂ pipeline transport is still lacking.

Equinor's planned CO₂ Highway (© Equinor)

Pipelines as the "Gold Standard" for CO₂ Transport

A practical example illustrates the scale: An average cement plant produces 4,000 tons of CO₂ daily. Transporting this quantity by rail would require four complete freight trains daily, each with 36 tank cars. Truck transport would require 200 trips daily.

A pipeline transports the same quantity continuously and without interruption. The additional transport advantages are evident: Traffic is not additionally burdened, and no noise or pollutant emissions are generated. Furthermore, transport is more cost-effective and less susceptible to accidents.

Equinor is planning the "CO₂ Highway Europe," a pipeline connection from multiple European port cities directly to storage fields in the North Sea. The Norwegian corporation aims to transport and store up to 18 million tons of CO₂ annually from 2030.

Storage Beneath the North Sea

The CO₂ is subsequently injected into underground rock formations, typically at depths of 800-3,000 meters. Depleted natural gas fields beneath the North Sea surface are preferred, as these are considered particularly impermeable. Alternatively, saline aquifers may be utilized, which are also highly impermeable and possess substantial storage volume.

Two long-term processes then occur: The CO₂ dissolves in saltwater, becoming heavier than water and sinking downward. Over decades, it subsequently reacts with surrounding rock and gradually mineralizes. Impermeable cap rock layers, often several kilometers thick, are designed to prevent gas escape to the surface.

Northern Lights project plan (© Equinor)

Practical Example: Northern Lights – CO₂ Capture from Cement Production as a Model for Blue Hydrogen?

Northern Lights is scheduled to commence operations in summer 2025 as Europe's first commercial CO₂ storage system. The project's initial phase features a storage capacity of 1.5 million tons of CO₂ annually at 2,600 meters depth beneath the seabed. Transport occurs over a distance exceeding 100 kilometers from the coast to storage sites. A cement manufacturer has been secured as the first customer, whose facility produces 1.3 million tons of CO₂ annually.

The CO₂ will be captured and liquefied at minus 50°C and 7 bar, then transported in specialized tanker ships. A 160-kilometer pipeline will convey the CO₂ from the land terminal to injection wells and inject it into the sandstone formation. Continuous monitoring through seismic analysis, pressure measurements, and geochemical analysis will ensure secure long-term storage.

New Market Perspectives for CO₂ Infrastructure

Should pioneering ventures like Northern Lights prove successful, this would likely substantially increase interest in blue hydrogen. Indeed, the scale-up of European hydrogen infrastructure could be accompanied by the parallel development of Europe-wide CO₂ transport infrastructure. This opens entirely new market perspectives for the pipeline and plant construction industry, as the new pipeline networks require specialized piping, compressor stations, and measurement and control technology.

Unlike natural gas, CO₂ can form corrosive acid in contact with water. This necessitates the use of high-alloy steels and specialized internal coatings. Pipes must also be designed with thick walls to withstand operating pressures of 80 to 150 bar. Additionally, new control valves are required that can handle CO₂-specific phase transitions. Retrofitting – the conversion of existing gas networks – represents a particularly interesting field. Portions of existing natural gas infrastructure can be converted or upgraded for CO₂ transport.

Conclusion: Blue Hydrogen as Strategic Positioning

For the pipeline industry, blue hydrogen and associated CCS represent more than merely a technical challenge – they constitute strategic positioning. Companies should make early decisions regarding investments in expertise and capacity.

What remains absent for CO₂ capture and transport to gain momentum in Germany is a regulatory framework. While European neighboring countries are already developing CO₂ storage fields, Germany continues working on legal foundations: The previous coalition government had prepared a Carbon Management Strategy, which was not adopted due to the premature end of the coalition. The coming years will therefore determine whether German industry can still adequately capitalize on market opportunities. Implementation of the Carbon Management Strategy currently in development and the associated amendment to the Carbon Dioxide Storage Act represent initial steps.

Wire & Tube 2026 will illuminate these and many other developments. From April 13-17, 2026, leading companies in the pipeline and plant construction industry will present their solutions for future energy infrastructure in Düsseldorf. Further information available at: https://www.tube.de/

Sources and Additional Information

DIHK Fact Sheet Hydrogen: https://www.dihk.de/resource/blob/24872/fd2c89df9484cf912199041a9587a3d6/energie-dihk-faktenpapier-wasserstoff-data.pdf

Professional Association THE GAS AND HYDROGEN INDUSTRY - Hydrogen Production Methods: https://gas-h2.de/wasserstoff/herstellung-wasserstoff/

Federal Environment Agency: Carbon Capture and Storage: https://www.umweltbundesamt.de/themen/wasser/gewaesser/grundwasser/nutzung-belastungen/carbon-capture-storage

Equinor's CO₂ Highway: https://www.equinor.com/energy/co2highwayeurope

Northern Lights Project: https://norlights.com/what-we-do/

OGE CO₂ Network: https://oge.net/de/co2/co2-netz