The European Commission has approved €260 million in Belgian state aid for a carbon capture and storage project to be run by Air Liquide and BASF at industrial sites in Antwerp where the two companies produce hydrogen, ammonia, and ethylene oxide.

In a statement released on 11 March, the Commission said the measure would contribute to Belgium’s climate targets by decarbonising the industry through an integrated cross-border CCS value chain, in line with the objectives of the Clean Industrial Deal. The value chain created will result in around 20 million tonnes of net greenhouse gas emissions avoided over 15 years. The CO₂ captured will be transported to a permanent underground storage site in the North Sea.

The Kairos@C project is a graduate of the first large-scale Innovation Fund call in 2020 and was awarded a grant of over €365 million at the time. However, due to issues including exceptional inflation over the past years, the project costs have significantly increased, resulting in the need for additional financing.

The aid will take the form of a direct investment grant of €30 million per beneficiary. The funds will be complemented by an additional grant to be paid out in ten annual instalments of €10 million per beneficiary, provided that minimum GHG emission reductions are achieved.