Netherlands awards €2bn Rotterdam CCS subsidy to Shell, Exxon

London (Quantum Commodity Intelligence) - The Netherlands has made a grant of around €2 billion in subsidies for what is planned to be the world's largest carbon capture and storage (CCS) project to a consortium including energy majors Royal Dutch Shell and Exxon, according to local media reports from NOS.

The two majors are joined by gas suppliers Air Liquide and Air Products for the project to capture carbon emissions from factories and refineries in and around Rotterdam port.

The carbon would then be stored in dormant Dutch gas fields in the North Sea.

The project is due to start operating in 2024 and will capture 2.5 megatons of CO2 per year, with nearly a quarter of Shell's Pernis refinery emissions, at 1.1 megatons, to be included within the project.

The four companies jointly applied for the subsidy in January and were told the applications were approved over the weekend, said NOS.

The funds will be allocated from a renewable energy pot that has until now been used mainly for solar and wind power generation.

The Dutch government aims to reduce emissions by 49% in 2030 and 95% in 2050, compared to a 1990 baseline.