Dutch government allocates €6.7bn to CCS projects

LONDON (ICIS)–The Dutch government has announced a €12bn budget for support through the SDE++ scheme, the bulk of which is set to be allocated to carbon capture & storage (CCS) projects.

The budget for the SDE++ scheme, which provides subsidies for the use of techniques for the generation of renewable energy and the reduction of carbon emissions, has increased due to pricing on the EU ETS being higher than previously expected, up from the previous €8bn.

A total of €6.7bn will be allocated to CCS projects, specifically eight projects that use the Aramis project for the use of empty natural gas fields in the North Sea.

The Aramis project is set to store CO2 from hard-to-abate industries by using depleted gas fields in the North Sea, based near Maasvlatke in the Port of Rotterdam for industrial customers.

The Port of Rotterdam is seen as a key area to decarbonise due to its large number of industrial and chemical plants located close to the port, with renewable ammonia due to be imported into the facility in the coming years as well as hydrogen infrastructure investment occurring.

In addition, more than €3bn will be allocated to renewable and minimal CO2 heat projects (such as geothermal), with €1bn for renewable energy.