Kick-starting Carbon Capture and Storage

November 6^th marked a historical day at Holcim Belgium, where VOKA, AKT and the Minister Presidents of both Flanders and the Walloon Region signed the Joint Declaration to Kick-Start the Carbon Capture and Storage (CCS) Value Chain in Belgium. This declaration paves the way for support schemes and risk mitigation measures that enable viable CCS projects and thus can unlock a potential of up to 7.5 Mtpa of CO₂ reductions!

As Master of Ceremony of this ‘CCS Now!’ event, I enjoyed the privilege of hosting three sofa talk sessions. In the first panel, I had the opportunity to discuss the challenges that currently deter Final Investment Decisions on CCS projects with four Captains of Industry, representing the hard-to-abate sectors. The main messages voiced by the CEOs of ArcelorMittal, BASF, Holcim and Heidelberg read:

• To provide price certainty, we must tackle the funding gaps between CCS costs and ETS pricing through de-risking measures such as Carbon Contracts for Difference
• The double penalty risk that currently deters industrial investments must be addressed
• We should ensure competitive and predictable transport tariffs through coordinated infrastructure de-risking

The second panel addressed the latter point, focusing on the role of infrastructure and the need for volume aggregation. As an educated pipeline engineer, I enjoyed discussion the need for dense phase carbon dioxide transport pipelines to design a robust CO₂ backbone with Pascal De Buck, CEO of Fluxys. I could also pick the brain of Vincent Verbeke (CEO of Engie Belgium) on cross-border connections, spatial planning, and permitting. This sharp and concise discussion taught me that

• Investment in a strategic CO₂ infrastructure is a no-regret if Belgium wants to realize its ambition of becoming a CO₂ hub within Western Europe
• Speed is instrumental, and volume aggregation is key to unlock the benefits of an economy of scale, and
• We need regulatory alignment between the regions in order to kickstart the Belgian CCS market

During the closing political panel, I did not miss the opportunity to pass on these messages to Matthias Diependaele (MP of Flanders) and Adrien Dolimont (MP of Wallonia). Both leaders indicated that they support the industry in its choice to decarbonize by focussing on technologies such as CCU and CCS, also acknowledging the need for significant long-term investments in a high-risk environment. The governments of Flanders and the Walloon Region voiced their strong support for CCS, joining forces to position our regions as an indispensable CO₂ hub in North-West Europe.

The ‘CCS Now!’ event culminated in signing the Joint Declaration to kick-start the Carbon Capture and Storage value chain in Belgium, where 17 companies confirmed that CC(U)S will play a key role in decarbonizing the industry. These signatories are instrumental in the implementation of industrial CCS projects:

I wholeheartedly believe this Joint Declaration marks an important step towards meeting the European climate targets while safeguarding the industrial base, jobs, and future competitiveness of our Belgian industry.