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Netherlands backs largest CCS project and commits millions to carbon removal

In a significant move to safeguard its environmental ambitions, the Dutch government has pledged €639 million ($726 million) to the Aramis carbon capture and storage (CCS) initiative—the Netherlands' largest project of its kind. The funding aims to fill a financial gap left by Shell and TotalEnergies, which recently scaled back their involvement in a key component of the infrastructure.

Netherlands backs largest CCS project with $726 million_Landscape view of the Rotterdam shoreline by the North Sea_visual 1Landscape view of the Rotterdam shoreline by the North Sea. AI generated picture.

Initially, Shell and TotalEnergies were set to co-finance a pipeline network linking industrial emitters to CO₂ storage sites beneath the North Sea. But both companies have since shifted their focus exclusively to developing those offshore storage facilities and related services, exiting the pipeline investment.

‘This takes away a large part of the risk in the project’, said Dutch Climate Minister Sophie Hermans, commenting on the government’s intervention to de-risk and keep the project on track.

Critical infrastructure for emission reductions

The Aramis project is designed to transport up to 22 million tonnes of CO₂ annually from industrial sources to depleted gas fields offshore, where it will be stored permanently. Expected to be operational by 2030, Aramis forms a central pillar in the Netherlands' strategy to reduce emissions by 55% by the end of the decade compared to 1990 levels. As of 2024, emissions are down by 37%, but experts caution that current policies may fall short without major infrastructure like Aramis.

With Shell and TotalEnergies stepping back, state-owned EBN and gas grid operator Gasunie will now jointly develop and manage the pipeline system. The two energy majors will remain involved in storage services, continuing to work with EBN and Gasunie on offshore components.

Building a national CCS network

Aramis will also be linked to CO₂next—a terminal under construction in Rotterdam by Gasunie, Vopak, Shell, and TotalEnergies. This terminal will enable the import and export of liquid CO₂ and serve industries not directly connected to the Aramis pipeline. Additionally, upgrades to the Porthos compression station will further strengthen the Netherlands' CCS infrastructure.

The Dutch government is also advancing clean energy through broader measures, including an €8 billion package supporting renewable energy and electric vehicles, and a new carbon removal subsidy program.

Read more: Bayfields: A commitment to care, innovation, and environmental responsibility

New €50 million boost for carbon removal innovation

As part of its 2026 nature bill, the government has earmarked €50 million ($57 million) to accelerate emerging carbon removal technologies. Subsidies will support a range of approaches—from biochar and carbon mineralisation to direct air capture—under a new incentive programme targeting innovation.

‘We make sure that we do not give too much subsidy. We carefully assess the investments based on the goals and criteria of the fund that are stated in the law’, said Minister Hermans.

This additional funding brings the total environmental innovation package to €105 million and is expected to support 75–80 projects.

As competition reshapes energy company strategies, government backing for projects like Aramis may prove pivotal—not just for the Netherlands’ environmental goals, but for Europe’s broader leadership in CCS technology.

Read more: From the ground up to space: seeing DGB’s impact in Uganda

As large-scale carbon capture infrastructure like Aramis advances Europe’s environmental goals, it’s clear that multiple solutions are needed to tackle emissions from all fronts. While CCS addresses hard-to-abate sectors, nature-based solutions remain vital for restoring balance—enhancing biodiversity, revitalising ecosystems, and supporting communities on the ground. DGB’s projects, from reforestation to clean cooking initiatives, complement industrial efforts by delivering high-integrity carbon units rooted in nature. If you're looking to make a nature-positive investment with lasting environmental and social impact, explore how our projects can align with your goals.

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