Norway and Germany continue to face the dual challenge of enhancing competitiveness and self-reliance while advancing decarbonization in an increasingly uncertain global landscape. During the German-Norwegian Energy Dialogue on September 23rd, we will gather key stakeholders to discuss the challenges, opportunities and the way forward for the crucial bilateral relationship. In this blog post, we will take a quick look back at the year so far and highlight some key developments in the energy sector and in German-Norwegian energy cooperation.
Picture: AHK
Since the last Energy Dialogue, Germany has gone through an election and a change in government. In the lead-up to the February election, electricity prices and competitiveness were key energy issues. The coalition agreement between SPD and CDU reaffirms Germany’s commitment to its climate goals. It outlines a broad strategy, including carbon capture, offshore wind, and all forms of hydrogen. Highlighting the central role of the energy sector, the new government appointed former Westenergie Chair Katherina Reiche as Minister for Economic Affairs and Energy. Good conditions for the already successful German-Norwegian cooperation of the past.
Norwegian-German cooperation has proven highly successful in diversification and security of gas supply and offers significant opportunities for the expansion of offshore wind capacity and CCS development. Cross-border cooperation benefits our both countries.
Klaus Müller, President of Bundesnetzagentur (Federal Network Agency)
Breakthrough for carbon capture and storage (CCS)
Marking a breakthrough in climate technology, the Longship project officially launched in June. Carbon captured from Heidelberg Materials’ cement plant in Brevik is now being permanently stored beneath the Norwegian continental shelf. As Europe’s first full-scale carbon capture and storage (CCS) value chain the project offers a practical and scalable solution for decarbonizing European industry.
Norway has shown that CCS is a proven and safe technology. With Northern Lights as Europe’s first cross-border CO₂ transport and storage network, the project is a true market opener and is now scaling to store millions of tonnes more. The next step is to build on this backbone, drive down costs, and secure European industry’s competitiveness in a decarbonised world.
Nina Scholz, Country Manager Germany, Equinor
However, for Germany to fully seize the opportunities within the CCS sector, legislative changes are needed to allow for the export of captured carbon.
Slower development in the hydrogen sector
Carbon capture and storage (CCS) reached a major milestone, while hydrogen sector developments have been more subdued. The ambitious targets from earlier this decade are now widely seen as unrealistic. Several companies scale back their hydrogen portfolios. Despite setbacks, hydrogen solutions gain traction as technologies mature and regulations improve. The maritime sector shows rising interest in hydrogen-derived fuels like ammonia and methanol. This momentum is reinforced by the IMO’s revised greenhouse gas framework agreed at MEPC 83 in April.
We still anticipate significant demand from various German industries seeking to minimize their carbon footprint. Our ongoing work on a variety of hydrogen projects using different technologies, such as the German-Norwegian H2GE project in Rostock, demonstrates the willingness of industrial companies such as Equinor and VNG to further develop the infrastructure that is essential for a decarbonised world, provided the right framework conditions are in place.
Mike Diekmann, Senior Vice President and Head of Strategy at VNG AG
Progress in offshore wind
The offshore wind industry has seen progress in both Norway and Germany. Despite an ongoing discussion concerning the costs of offshore wind, Norway launched the long-anticipated Utsira Nord tender. This marked a major step forward for what will be the world’s largest floating wind project. Across the North Sea, Germany continues its regular offshore wind auctions, with many projects being developed in partnership with Norwegian offshore service providers.
Gas-fired power plants for flexibility
Germany’s renewable share has reached a record high, but reliance on wind and solar increases market volatility. This has sparked debate on how best to increase flexibility in the power system. The debate intensified after a challenging winter with high prices from low wind and solar output (“Dunkelflaute”). In June, the government announced plans to build 20 GW of gas plants for backup and price stability. The power plant issue is now under discussion, with all perspectives being considered.
These and other topics will be discussed on September 23rd when business leaders, policymakers, and civil society representatives meet to discuss the way forward for the crucial German-Norwegian Energy cooperation at the German-Norwegian Energy Dialogue 2025.