The European Commission has approved €260 million in public funding for a large-scale carbon capture and storage project in Belgium aimed at reducing industrial emissions and building a cross-border carbon management infrastructure. The funding will support the Kairos@C initiative, a joint project involving Air Liquide Large Industry NV and BASF Antwerpen NV.

The approval allows Belgium to provide financial support under European Union state aid rules and forms part of broader efforts to decarbonise heavy industry while maintaining manufacturing capacity. The project focuses on capturing carbon dioxide emissions from industrial facilities in Antwerp and transporting the gas for permanent storage beneath the North Sea.

Developing an Industrial Carbon Capture System

The Kairos@C project is designed to capture emissions from existing industrial processes producing hydrogen, ammonia and ethylene oxide. These sectors are considered difficult to decarbonise because their production methods generate carbon dioxide through chemical reactions or require high-temperature industrial processes.

Under the project design, carbon dioxide will be captured at the industrial facilities, compressed and transported to geological storage sites in the North Sea. The gas will then be injected deep underground into suitable geological formations where it can be permanently contained and monitored.

By integrating capture, transport and storage infrastructure, the project aims to establish a complete carbon management chain linking industrial sites to offshore storage resources.

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Expected Emissions Reductions

Over a projected operating period of 15 years, the system is expected to prevent approximately 20 million tonnes of greenhouse gas emissions from entering the atmosphere. In addition to reducing emissions, the project is intended to support the production of lower-carbon hydrogen and ammonia for industrial use.

Carbon capture and storage technologies are increasingly being examined as part of climate strategies for sectors where electrification or fuel switching alone may not fully eliminate emissions.

Additional Funding Following Cost Increases

Kairos@C was previously selected for support through the European Union’s Innovation Fund in 2020, receiving a grant of more than €365 million. The Innovation Fund finances large-scale demonstration projects focused on low-carbon technologies across the energy and industrial sectors.

However, rising project costs in recent years, including inflation and higher infrastructure expenses, meant additional funding was required for the project to proceed.

The newly approved €260 million funding package will be financed through the budget of the Flemish regional government. Each participating company will receive an initial grant of €30 million, with further support distributed through ten annual payments of €10 million per beneficiary.

These annual payments will be linked to the project achieving specified greenhouse gas emission reduction targets.

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Role in Europe’s Industrial Decarbonisation

The project reflects the European Union’s growing focus on carbon capture technologies as part of its broader decarbonisation strategy. While renewable energy and electrification are central to reducing emissions, industrial sectors such as chemicals, cement and steel often require additional technologies to manage unavoidable emissions.

By supporting projects such as Kairos@C, European policymakers aim to demonstrate how carbon capture infrastructure can operate at industrial scale and support the transition toward lower-carbon manufacturing.

The initiative also contributes to the development of a regional carbon transport and storage network connecting industrial hubs with offshore storage sites in the North Sea, which is increasingly being positioned as a major carbon storage basin for European industry.

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