German state approves gas drilling project in North Sea

The controversial extraction of natural gas in the North Sea near the German island of Borkum is moving closer to becoming a reality after a responsible authority gave its approval.

The Office for Mining, Energy and Geology (LBEG) in the northern German state of Lower Saxony said on Wednesday it granted the Dutch energy company ONE-Dyas an 18-year permit for drilling under the seabed.

Under the terms of the deal, the drilling and extraction would be halted if it was determined that Germany no longer needed natural gas as an energy source.

Europe's biggest economy is aiming to accelerate the use of renewable energies, such as solar and wind power, as part of a low-carbon future.

LBEG President Carsten Mühlenmeier said that gas extracted from domestic deposits is significantly less harmful to the climate than imported gas.

ONE-Dyas plans to start extraction from a field near the German island of Borkum and the Dutch island of Schiermonnikoog later this year.

Drilling is planned at depths of 1.5 kilometres to 3.5 kilometres.

The expected extractable amount of natural gas for the entire project ranges from 4.5 billion cubic metres to 13 billion cubic metres.

The Federal Network Agency, a German regulator, said around 81 billion cubic metres of gas were consumed in Germany last year.

Project still faces legal and diplomatic hurdles

Environmental protection groups and island residents in Germany and the Netherlands are opposed to the project. Fridays for Future protested recently on Borkum and in front of the Lower Saxony state parliament in Hanover.

Environmental Action Germany had promised to take legal action against the project should it receive approval from state authorities.

Apart from the climate concerns, they fear damage to the Wadden Sea marine national park. The UNESCO World Heritage Site spans the territory of Netherlands and Germany. It is the largest unbroken system of intertidal sand and mud flats in the world, UNESCO says.

Furthermore, an international agreement between Germany and the Netherlands is still needed before drilling can begin as the project affects the territory of both countries. The sides have been in talks since 2022 at the federal level.

"The main content of the agreement includes regulations on the division of the deposit, cross-border cooperation between the authorities and field and extraction taxes," a spokeswoman for the Economy Ministry in Berlin said.