EU approves €260m state aid for CO2 capture project in Port of Antwerp

The European Commission has approved €260 million in state aid from the Flemish government for a major carbon capture project in the Port of Antwerp.

The funding will support Kairos@C, a joint venture between chemical company BASF and industrial gases group Air Liquide. The project aims to capture carbon dioxide produced at BASF’s site in Antwerp and store it beneath the seabed of the North Sea.

Under the plan, each company will receive a €30 million direct investment grant. They could also receive up to €10 million per year for ten years, depending on whether they meet agreed CO2-reduction targets.

The Commission said the aid complies with EU state-aid rules, calling it necessary, proportionate and beneficial for environmental protection. It added that the companies would not proceed with the investment without public support.

The project previously secured more than €365 million from the EU’s European Innovation Fund in 2020. However, rising costs and high inflation have made additional funding necessary.

Kairos@C aims to capture CO2 released during ammonia production and transport it by pipeline and ship for storage under the North Sea. Over 15 years, the project could prevent around 20 million tonnes of greenhouse gases from entering the atmosphere.

The initiative could also create infrastructure allowing other industrial companies in Antwerp to connect and store their emissions. A final investment decision has not yet been taken.

^{#FlandersNewsService | BASF in Antwerp © BELGA PHOTO LUC CLAESSEN}