Netherlands Steps In with $726M for Aramis Carbon Capture after Shell, Total scale back

source: Unsplash

The Netherlands has pledged €639 million (~$726 million) to support the Aramis carbon capture and storage (CCS) initiative after Shell and TotalEnergies pulled out of financing its critical pipeline infrastructure.

The two energy giants, part of a wider trend among European firms retreating from aggressive renewable goals to prioritize oil and gas competitiveness, will continue to work on developing CO2 storage sites and offering CCS services despite withdrawing pipeline investment.

Climate Minister Sophie Hermans said the state’s intervention significantly de-risks the project, now led by state-owned energy company EBN and gas network operator Gasunie.

The pipeline network is central to the Aramis project, designed to link industrial CO2 emitters with undersea storage locations in the North Sea. 

Set to handle up to 22 million tonnes of carbon emissions annually, Aramis is a cornerstone of the Netherlands’ plan to reach its climate targets.

A final investment decision is scheduled for 2026, with operations slated to begin by 2030 — aligned with the Netherlands’ objective of reducing emissions 55% below 1990 levels within the decade. 

Emissions were down 37% as of last year, but government advisors have warned that current measures are not enough to meet the 2030 target.

To boost progress, officials also unveiled an €8 billion (~$9 billion) package aimed at expanding renewable energy projects and incentivizing electric vehicle adoption.

Industrial firms will receive financial support to help manage soaring energy costs.

source: carbon herald