Air Liquide and Holcim have signed a strategic agreement to deploy a large-scale carbon capture system at Holcim’s Obourg cement plant in Belgium, advancing decarbonization in one of Europe’s most emissions-intensive sectors.

The project is designed to capture up to 1.1 million tons of CO₂ annually, positioning the Obourg facility among the most advanced cement plants in Europe in terms of emissions reduction. The agreement formalizes the next stage of collaboration between the two companies and integrates Air Liquide’s proprietary Cryocap OXY technology into Holcim’s oxyfuel-ready clinker production line. Air Liquide will also supply the oxygen required for the combustion process.

Technology Integration and Carbon Transport

At the core of the initiative is Cryocap OXY, a carbon capture technology tailored for oxy-combustion systems. By replacing air with oxygen during combustion, the process generates flue gases with higher CO₂ concentration, reducing separation complexity and improving capture efficiency.

Captured CO₂ is planned to be transported via pipeline to a CO₂ export hub, such as Antwerp@C. From there, the emissions would be shipped for permanent offshore storage in the North Sea. The structure reflects Europe’s growing focus on integrated capture, transport and storage networks rather than isolated site-level solutions.

However, the Final Investment Decision remains conditional. Both companies have emphasized the need for regulatory clarity around transport infrastructure, additional value chain partnerships and public-sector derisking mechanisms to support early-stage deployment.

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Cement Sector and Policy Context

Cement production accounts for approximately 7 to 8 percent of global CO₂ emissions, driven by fuel combustion and the chemical reaction inherent in clinker production. Electrification alone cannot eliminate these emissions, making carbon capture central to credible net-zero pathways for the sector.

The Obourg project forms part of Holcim’s broader GO4ZERO program, aimed at achieving carbon neutrality in Belgium by the end of the decade. At the policy level, the initiative aligns with the European Union’s climate objectives and tightening carbon pricing under the European Union Emissions Trading System.

For industrial operators, project economics depend heavily on carbon price trajectories, infrastructure availability and state-backed risk-sharing frameworks. Without coordinated regulatory and financial support, large-scale CCS remains capital intensive with long payback horizons.

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Executive Perspective and Strategic Implications

Émilie Mouren-Renouard, member of Air Liquide’s Executive Committee overseeing European operations, highlighted that industrial decarbonization requires sustained collaboration and public backing, particularly during early deployment phases.

The Obourg initiative illustrates how hard-to-abate industries are moving beyond feasibility studies toward infrastructure-linked execution. The integration of capture technology with regional CO₂ hubs and offshore storage suggests that Europe is building a cross-border carbon management backbone.

For executives and institutional investors, the critical variables are regulatory certainty, bankable storage capacity in the North Sea and structured public support mechanisms. As carbon pricing tightens and disclosure standards sharpen, projects like Obourg may become reference cases for balancing industrial competitiveness with long-term climate commitments.

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