The Dutch government has committed $726 million (639 million euros) to the Aramis carbon capture and storage (CCS) project, which stands as the largest of its kind in the Netherlands. This significant investment comes in the wake of energy giants Shell and TotalEnergies reducing their financial support for a crucial part of the project—the construction of a large pipeline system. Originally, both companies had planned to help fund this infrastructure, which would connect factories and industrial areas to underground storage sites in the North Sea. However, they have now opted to concentrate solely on developing carbon storage sites and providing carbon storage services, pulling out of the pipeline investment.
Without government intervention, the future of the Aramis project was uncertain. In a statement, Climate Minister Sophie Hermans emphasized the importance of this investment, saying, "This takes away a large part of the risk in the project." The government’s involvement is seen as essential to ensure that the Netherlands can meet its ambitious climate goals.
The Aramis project is designed to capture carbon dioxide (CO₂) from industrial emissions and transport it to underground storage locations in empty gas fields beneath the North Sea. Once stored, the CO₂ will remain underground permanently, preventing it from contributing to climate change. The project aims to transport up to 22 million tonnes of CO₂ annually, establishing an open-access system that allows various industrial companies to utilize it. Construction is expected to be completed by 2030, following a final investment decision set for 2026.
This initiative is a cornerstone of the Netherlands’ plan to cut emissions by 55% by 2030 compared to 1990 levels. As of 2024, emissions were already 37% lower than 1990 levels, but government experts caution that current policies are insufficient to meet the 2030 target. Projects like Aramis are deemed crucial for bridging that gap, particularly for hard-to-decarbonize sectors such as cement, chemicals, and steel.
The withdrawal of Shell and TotalEnergies from the pipeline aspect of Aramis reflects a broader trend among European energy companies. In recent years, many of these firms have set ambitious climate goals and promised significant investments in renewable energy. However, competition from American oil and gas companies, which have maintained a focus on fossil fuels, has made it increasingly challenging for European firms to keep pace financially. Shell, for instance, announced in 2023 that it would prioritize shareholder value over expanding its renewable energy investments.
Despite scaling back their funding, Shell and TotalEnergies remain involved in the Aramis project. They will collaborate with state-owned Energie Beheer Nederland (EBN) and gas grid operator Gasunie to develop two offshore CO₂ storage sites and plan to offer carbon storage and transport services once the system is operational. With the withdrawal of pipeline investment from these companies, EBN and Gasunie will assume greater control over the Aramis infrastructure, jointly owning and operating the pipeline system as a 50:50 partnership.
Aramis is not the only CCS project underway in the Netherlands; several related infrastructure projects are being developed to create a more extensive carbon capture network. One such initiative is CO₂next, a new terminal being constructed by Gasunie, Vopak, Shell, and TotalEnergies. Located in Rotterdam’s Maasvlakte area, this terminal will facilitate the import and export of liquid CO₂, connecting with the Aramis pipeline system to enable industries not directly linked to the pipeline to access CCS services. Additionally, the planned expansion of the Porthos compression station will assist in compressing CO₂ for safe storage beneath the sea.
To further bolster progress in carbon capture and renewable energy, the Dutch government recently announced an €8 billion ($8.6 billion) package to support renewable energy projects, electric vehicles, and other sustainable technologies. This funding aims to alleviate some of the financial burdens on industries facing high energy costs, which can hinder the transition to cleaner energy.
Carbon capture and storage is increasingly recognized as a vital tool in the global battle against climate change. Certain industries, particularly cement and steel, are notoriously difficult to decarbonize, and even with advancements in technology, they are likely to continue producing some emissions for the foreseeable future. CCS presents a solution by capturing these emissions before they enter the atmosphere. According to the International Energy Agency (IEA), achieving net-zero emissions by 2050 will necessitate capturing more than 7.6 billion tonnes of CO₂ globally each year. Currently, however, global CCS capacity is significantly lower, at around 50 million tonnes per year, indicating a pressing need for major expansion.
Several European nations are investing heavily in CCS technologies, with Norway’s Longship project and the United Kingdom’s East Coast Cluster serving as prominent examples of large CCS hubs under development. The Netherlands aims to position itself as a leader in carbon capture services across Europe by making early investments in projects like Aramis.
By backing the Aramis initiative, the Dutch government is not only striving to meet national climate objectives but also safeguarding its industrial economy and fostering new business opportunities for the future. If successful, the Aramis project could serve as a model for other countries, demonstrating how to balance economic growth with climate action. It also enhances Europe’s commitment to utilizing CCS technology. As the energy transition progresses, the collaboration between governments and businesses will be crucial. The Netherlands’ decisive move to support the Aramis CCS project underscores its commitment to finding practical solutions to the climate crisis, even as market dynamics shift and corporate strategies evolve.
