€2 Billion in CCS Subsidies Granted by Dutch Government

A consortium of key players in the gas and oil sector including Royal Dutch Shell (RDSA.L) and ExxonMobil (XOM.N) was granted €2 billion ($2.4 billion) in subsidies by the Dutch government. According to the Port of Rotterdam, the subsidy is in line with one of the largest carbon capture and storage (CCS) projects in the world.

The project hopes to reduce emissions around Europe’s largest seaport by 10% through the capturing of CO2 emitted by factories and refineries in the Rotterdam port area and storing it in empty Dutch gas fields in the North Sea. This is set to be operational in 2024.

A total of €5 billion in subsidies is expected to be granted by the Dutch government in 2021 for relevant technologies that will allow it to realize its climate goals. It has already received applications with a sum amounting to €6.4 billion.

CCS subsidies are primarily geared to compensate companies for the additional costs of capturing greenhouse gasses instead of emitting them.

The Netherlands houses Europe’s main seaport along with many large industries, making it have one of the highest emissions of greenhouse gasses per capita in the region.

The country is determined to lower its emissions by 55% relative to 1990 levels by 2030. In the past year, its emissions were down by 24.5% from the levels reported in 1990.

Source: Reuters