Progress through Persistence: this was the seventh Carbon Storage Dialogues

On Thursday 28 May, the seventh edition of the Carbon Storage Dialogues took place at the former subtropical swimming paradise Tropicana in Rotterdam. The theme: Progress through Persistence. Only by persevering can CO2 storage projects truly be realised. What is needed are frontrunners willing to do more than merely dip their toes in the water, said EBN’s CCS Director Joost Hooghiem, who opened the day for around 300 professionals, drawing a link with the venue. “We must move forward – it doesn’t have to be perfect, but it does have to be together.”

A setting such as a former swimming pool – now the circular hub BlueCity – where the temperature under the glass roof rose high due to the bright May sun, lends itself perfectly to all kinds of comparisons with the challenges facing the CCS sector. One comparison is with the Porthos project, where a former gas production platform has been successfully converted to enable CO2  to be injected into the depleted gas field. Much like the entirely new purpose given to the swimming pool. This is only possible by looking through a different lens. And by persistently believing in the idea. 

Different climate impact, different valuation 

That CO2 is a complex gas, is something Joseph Stemmler of the University of Oxford readily acknowledges. In a search for the value of CO2, the researcher concludes that CO2 can have greater or lesser climate impact depending on where it comes from and how it is used or stored. He therefore advocates a differentiated CO2 market in which that difference in impact is properly taken into account. According to Stemmler, particular attention should be paid to CCU, as the value of utilising CO₂ is more difficult to determine and therefore risks being undervalued. 

Porthos is first of a kind, Aramis in its wake
Gemmeke Groot is managing director of Porthos, to date the first CO2 transport and storage project of scale in the EU. What does Groot consider the most important factor in getting the project over the line? Is it the technology, the team, the business case or the regulatory framework? According to Groot, it is everything, and all at once. It was recently announced that the first injection of CO2 will not take place at the end of this year but has been pushed back by a year. There are still design challenges compounded by other uncertainties. “It is a ‘first of a kind’ project. Reliability and safety come first. That is why a revised schedule was necessary.”  

In the wake of Porthos, an investment decision will soon be made for Aramis, anticipated in 2027. Bram Herfkens is Manager Asset Management & JV Manager for Aramis at EBN. Drawing on lessons learned from Porthos, he says he first wants to take a so-called ‘conditional’ investment decision, ahead of the actual one. “In order to build confidence among all parties involved and to eliminate potential risks and bottlenecks ahead of their FID,” he explains. 

Developing a single value chain together 

The complexity of both Porthos and, to an even greater degree, Aramis lies in the number of different partners involved in the project. Groot is realistic: “Although ‘first of a kind’, the individual techniques are not necessarily new. It is merging them into a completely new value chain that makes these types of projects so challenging.” For Porthos, a partnership comprising four core partners, this remains fairly manageable. Aramis on the other hand, involves a much larger number of partners. Tom Eikmans of Air Liquide thinks it is time to set aside some of the mutual competition and to approach the creation of this new value chain as a shared endeavour. 

The demand for new technologies 

Various questions arise from the audience. One is whether new technologies in the field of CO2 capture and storage are needed. Although the initial response is cautious, – the number of inputs and participants is already challenging enough – a number of promising initiatives are pitched later in the afternoon that shed new light on the subject. Siemens Energy, for instance, has decarbonisation technologies and installations that are highly suited to industry in the port of Rotterdam area. And SCW Systems uses the fourth phase of water to convert residual streams into usable energy, thereby helping industry to decarbonise. Their large installation in Alkmaar is attracting considerable interest.  

Alongside the large and well-known projects in which public organisations such as EBN and Gasunie participate, an increasing number of private companies are also making their presence felt in the field of CO2 storage. Another question from the audience is whether there will be sufficient CO2 volume and enough emitters should all these private projects come to fruition. The conclusion from Eikmans, Groot and Herfkens is that all available capacity will be needed. 

Seeking certainty 

At present, the market dynamics are characterised by a degree of caution. Too many swimmers are eager to dive into the deep end, but for now stand on the poolside watching one another – and in particular watching for regulatory frameworks that offer the certainty to build upon. Uniper (energy), AEB (waste-to-energy) and Lhoist (lime producer) are companies with ambitions to further reduce CO2 emissions; given the origin of their CO2, this results in Carbon Dioxide Removal (CDR). Uniper and Lhoist are switching the fuel for their production processes from fossil to biofuels. According to Dyonne Rietveld of Uniper Benelux, what is crucial to actually investing in projects is the investment decision that must be taken for Aramis. The development of incentive schemes for industry is not progressing as quickly as necessary. Timing is critical. Fortunately, Rietveld notes that the importance of industry in the Netherlands is now being more explicitly recognised by the national government. Micha Hes of AEB calls otut: “We are in the starting blocks, give us regulatory certainty and, where needed, tailor-made solutions.”  

A thorny issue remains the absence of a uniform reward system for carbon removal, also known as negative emissions. The ETS system is regulated, which provides market certainty. The trading system for carbon removal is still voluntary and therefore volatile. “But it is important for the future, certainly for the next ten to fifteen years,” says Rietveld. 

Platform Carbon Management NL
To join forces for the development of complex value chains for CO2  utilisation, storage and removal projects, the Taskforce Negative Emissions and the CCU Alliance are initiating a new collaboration that will be officially launched the following day: Platform Carbon Management NL. Yolande Verbeek, COO of EBN and Chair of the platform: “This platform must bring together the individual initiatives to generate more knowledge and put the different pieces of the puzzle together.” 

Helping hand 

Michel Heijdra, Vice Minister of Climate Policy and Green Growth, finds himself, at the close of the Carbon Storage Dialogues, transported back to his childhood at this swimming pool – in his the most wonderful place to be in the eighties and nineties. His first intention to visit the swimming pool was cut short by unforeseen circumstances. His parallel with the CO2 storage sector: always be prepared for setbacks and for what happens in your immediate surroundings. When Heijdra visited Tropicana a few months later, he experienced the tremendous force at the bottom of the water slide. The plunge underwater was so deep that a helping hand was always needed to pull you out of the turbulent water. Another link: it is also important to lend each other a helping hand when developing a CCS market. 

Rewarding carbon removal is crucial 

The government’s position is that the capture, transport and storage of CO₂ are crucial to decarbonising industry. Secondly, he is resolute on one of the key priorities in the Dutch contribution to the revision of the ETS: carbon removal must be given a place within it. “Please, give real value to carbon removal. That is crucial for scaling up.” Globally, the target for carbon removal is 7 to 9 Gt by 2050, compared with the current level of 2 Gt. More storage capacity is needed — forests alone will not suffice. And yet Heijdra acknowledges that taking an investment decision remains challenging: parties are actively seeking their position in the game. He explicitly calls on emitters to clearly communicate what is needed to move one another towards an investment decision — and conversely calls on partners in the Aramis and Porthos consortia to listen carefully to the wishes and needs of the market. He offers all partners a realistic reminder: “We all want stable policy, but the world is not stable, so we must be able to adapt where necessary. And we want to hear from industry where adaptation is needed.” 

Support from Brussels and from the King 

The helping hand is there — not least through the SDE++ scheme, which now also supports technologies for CO₂ capture, storage, and CCU. Support is also coming from Brussels, as MEP Jeannette Baljeu reported via video link. She outlined the shifting tone of recent years: from being seen as too expensive and too complex, to the first real projects actually being realised. The Netherlands is showing itself to be a frontrunner. Baljeu looks forward to the CO₂ markets and infrastructure package that the European Commission will present later this year. “For the first time, CO₂ transport and storage will have its own European framework — not tucked away within other legislation, but with recognition as a market in its own right.” She also mentioned the Industrial Decarbonisation Bank as an important instrument for providing greater certainty to industry when investing in CCS. 

And there is yet another helping hand. Although Michel Heijdra modestly credits himself with some influence in further stimulating the CCS market, he believes there is a more influential ambassador for the CO₂ transport and storage sector: our King. “Our King was personally present in North Rhine-Westphalia for the signing of a Memorandum of Understanding between Germany and the Netherlands. And shortly he will receive the German Federal President for a visit on which CCS also features on the agenda. I am proud that we in the Netherlands have a King who is so committed to energy matters.” 

In closing 

At the end of a warm afternoon in the former Rotterdam swimming paradise, a cold drink, a fresh breeze, and a distant view across the Maas towards the port area — where progress in the field is clearly visible — beckon from the terrace outside. It was a day rich in concrete examples of progress, reflected EBN CCS Director Joost Hooghiem in his closing summary. Tomorrow we carry on — not with great breakthroughs or in seven-league boots, but steadily and persistently moving forward with courage. He emphasised that everyone in the room has a role to play, and held up a mirror to the audience: how will they themselves contribute to the theme of Progress through Persistence next week?