CO₂ Value Chains for E-Kerosene: Current Status and Challenges

How does CO₂ transform from an emission into a strategic resource? And what regulatory, technical, and economic conditions are necessary to establish a sustainable CO₂ value chain?

These questions were the focus of the event “CO2 Value Chains for E-Kerosene: Current Status and Challenges,” held on February 24, 2026, in Frankfurt am Main. Experts provided insights into current projects and challenges across the entire value chain.

It became clear that carbon is indispensable for industrial processes. To achieve climate goals, a conscious and strategic approach to this resource is crucial.

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Biogenic CO₂: Technical Potential Meets Growing Demand

The FNR research project Bio-CO₂ made it clear: CO₂ from biogas processing plants offers potential, but its utilization is complex. Trace gases such as sulfur compounds increase the demands on purification and processing. According to Dipl.-Ing. Michael Beil (Fraunhofer IEE), the potential available nationwide currently is at around 1.7 million tons of CO₂ per year. This contrasts with a projected market demand of approximately 4.5 million tons annually. To close this gap, viable business models and functioning biomethane markets are needed.

CCUS is indispensable in the cement industry: Oxyfuel as a key technology

Dr. Bernhard Drescher (Dyckerhoff) explains that even when all other decarbonization measures are implemented, some CO₂ emissions remain unavoidable. The “catch4climate” pilot project is therefore testing the so-called oxyfuel process: Combustion with pure oxygen increases the CO₂ concentration in the raw gas, which facilitates CO₂ capture. The technology shows great potential for use in the cement industry, but at the same time requires significant adjustments to the production process.

CO₂ capture is technically feasible - but regulatory aspects remains unclear

At the Höchst Industrial Park, a pilot project used amine scrubbing to capture CO₂ following sewage sludge incineration. Julia Börner (Infraserv Höchst) points out that there are no clear guidelines for crediting or utilizing CO₂ in CCU applications.

Scenarios for a multimodal CO₂ transport infrastructure in Germany

A CO₂ market requires functioning transport structures. Luna Lütz (Fraunhofer ISI) compared the potential of pipeline networks with that of multimodal solutions. While pipelines require high initial investments, they are cost-effective in the long term - provided that a sufficient number of stakeholders participate. Vehicle transport allows for a faster start with lower investment, but is less scalable in the long term.

CO₂ infrastructure requires financing certainty, de-risking, and political commitment

Stefanie Jakobi (Open Grid Europe) emphasized: “Building a European CO₂ transport network requires risk mitigation and support mechanisms, such as the Innovation Fund. Without clear political signals, long-term investment certainty, and financing strategies, a comprehensive transport network will not emerge.”

Quality Matters for E-Kerosene: CO₂ as a Strategic Asset

Alexander Irslinger (INERATEC) used the ERA ONE project to demonstrate that synthetic fuels (e-fuels) place high demands on CO₂ purity. At the same time, he called for a shift in perspective: CO₂ should not primarily be viewed merely as a cost factor, but as a strategic raw material that, when processed, can be an important part of a carbon-based circular economy.

Regulatory gaps are currently slowing down the ramp-up

Stephan Klingl (FutureCamp) pointed out existing regulatory gaps in the CCU sector: applications involving temporary carbon storage are still insufficiently regulated. Furthermore, the potential integration of EU ETS Phases 1 and 2, as well as the inclusion of negative emissions, remains unclear. The Carbon Removal and Carbon Farming Regulation (CRCF) could provide guidance in this area in the future.

The 2050 target requires concrete intermediate steps, viable business models, and lead markets

It became clear during the panel discussion: The goal of climate neutrality by 2050 has been set, but clear intermediate steps are lacking. During the panel discussion, Maike Schmidt (ZSW), Markus Semmler (Fritz Winter Eisengießerei), and Niels Hanaus (Indaver Group) emphasized that carbon management must be economically viable. Key factors include risk mitigation, investment safeguards, and the creation of “green lead markets.”

For Hessen, the importance of a coordinated, overarching body was emphasized to pool regional strengths and solve the classic “chicken-and-egg problem” in infrastructure development.

Building a CO₂ value chain will only succeed if technology, the market, and regulation work together

The overarching message of the day: CO₂ utilization is not a distant vision of the future, but it still poses significant challenges. For CO₂ to become a strategic resource, there must be synergy between infrastructure, market mechanisms, and reliable regulatory frameworks throughout the entire value chain.