The Dutch government will be setting aside €2.1bn ($2.56bn) in grant money for Porthos’ four customers, Air Liquide, Air Products, ExxonMobil and Shell, bringing the realisation of CO2 capture and storage in Rotterdam another step closer.

Port of Rotterdam CO2 Transport Hub and Offshore Storage (Porthos) is a joint venture between the Port of Rotterdam Authority, Gasunie and EBN. The project is on schedule to store an annual amount of 2.5m tonnes of CO2 from the industry in empty gas fields beneath the North Sea from 2024.

The companies in question will be capturing CO2 at their facilities in Rotterdam’s port area, which will then be transported and stored offshore.

The awarded grants come from the sustainable energy transition subsidy scheme (SDE++), which was set up in support of projects that help reduce the collective carbon emissions of the Netherlands.

This funding is required to bridge the gap between the current rates for CO2 emission allowances (ETS) and the costs involved in carbon capture and storage (CCS).

The €2.1bn in funding concerns a budget reservation. It constitutes the maximum amount that may be paid to eligible recipients over a term of 15 years. The actual total is expected to be significantly lower since the ETS rate is expected to rise further in the years ahead.

The signatories to the Dutch Climate Agreement have agreed that half of the reduction in carbon emissions achieved by 2030 will be realised via CCS, with the Porthos project expected to cover more than one third.

The final investment decision for the Porthos project will be taken in the first quarter of 2022.