The Dutch government has committed $726 million (639 million euros) to the Aramis carbon capture and storage (CCS) project, the largest of its kind in the Netherlands. This major investment comes after energy companies Shell and TotalEnergies decided to reduce their financial support for part of the project.
Shell and TotalEnergies had originally planned to help fund the construction of a large pipeline system. This pipeline would connect factories and industrial areas to underground storage sites in the North Sea.
However, both companies have now chosen to focus only on developing the carbon storage sites and offering carbon storage services. They pulled out of investing in the pipeline infrastructure.
Without government help, Aramis’s future was uncertain. In response, the government stepped in to cover the risk and keep the project moving forward. Climate Minister Sophie Hermans said that the decision would help ensure that the country could still meet its climate goals, saying:
“This takes away a large part of the risk in the project.”
How Aramis Will Trap Carbon and Cut Emissions
The Aramis project is designed to capture carbon dioxide (CO₂) from industries and transport it to underground storage locations. These sites are in empty gas fields deep under the North Sea. Once stored, the CO₂ will stay underground permanently, preventing it from entering the atmosphere and contributing to climate change.
Aramis plans to transport up to 22 million tonnes of CO₂ every year. The system will be open-access, meaning many different industrial companies can use it. The goal is for construction to finish by 2030, after a final investment decision in 2026.
The pipeline is a central part of the Netherlands’ plan to reduce its carbon emissions. The country wants to cut emissions by 55% by 2030 compared to 1990 levels.
Although emissions were 37% lower than 1990 levels as of 2024, government experts warn that current policies are not strong enough to meet the 2030 target. Projects like Aramis are seen as essential to closing that gap.
By capturing and storing carbon from hard-to-decarbonize sectors like cement, chemicals, and steel, Aramis will help industries reduce their impact without shutting down operations.
Shell and TotalEnergies Shift Gears: What It Means
Shell and TotalEnergies’ decision to back away from the pipeline part of Aramis reflects a larger shift happening among European energy companies. In recent years, many companies have set ambitious climate goals and promised large investments in renewable energy.
However, competition from American oil and gas companies, who stayed focused on fossil fuels, has made it harder for European firms to keep up financially.
Now, some European energy giants are slowing down their clean energy plans to focus again on their core oil and gas businesses. Shell, for example, announced in 2023 that it would focus more on delivering value to shareholders and less on expanding renewable energy investments.
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Despite reducing their funding, Shell and TotalEnergies are still involved in Aramis. They will work with Gasunie and Energie Beheer Nederland (EBN) to develop two offshore CO₂ storage sites. They also plan to offer carbon storage and transport services once the system is built.
With Shell and TotalEnergies pulling back on pipeline investment, state-owned EBN and gas grid operator Gasunie will take greater control of the Aramis infrastructure. They will jointly own and operate the pipeline system as a 50:50 partnership.
Building a Carbon Capture Superhighway
Aramis is not the only CCS project underway in the Netherlands. Several other infrastructure projects are linked to it, helping to build a broader carbon capture network.
One of these projects is CO₂next, a new terminal being built by Gasunie, Vopak, Shell, and TotalEnergies. Located in Rotterdam’s Maasvlakte area, the terminal will allow ships to bring in or ship out liquid CO₂. The CO₂next terminal will connect to the Aramis pipeline system, making it easier for industries not directly connected to the pipeline to use CCS services.
Another related project is the planned expansion of the Porthos compression station. This station will help compress CO₂ so that it can be safely pushed into storage sites under the sea.
In addition to these projects, the Dutch government announced a new €8 billion ($8.6 billion) package to support renewable energy, electric vehicles, and other sustainable technologies. Industries will also receive compensation to help deal with high energy prices, which can make the transition to cleaner energy harder.
Why CCS Matters More Than Ever
Carbon capture and storage is becoming an important tool in the global fight against climate change. Some industries, like cement and steel, are very hard to decarbonize.
Even with new technologies, they are likely to continue producing some emissions for years to come. CCS offers a way to deal with these emissions by capturing them before they enter the atmosphere.
According to the International Energy Agency (IEA), reaching net-zero emissions by 2050 will require capturing more than 7.6 billion tonnes of CO₂ globally each year. Right now, global CCS capacity is much smaller — only about 50 million tonnes per year — so major expansion is needed.
As of 2024, the following is the global CCS project trend per McKenzie’s data.
Several European countries are investing heavily in CCS. Norway’s Longship project and the United Kingdom’s East Coast Cluster are examples of large CCS hubs being developed. The Netherlands hopes that by investing early, it can become a leader in carbon capture services for Europe.
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By supporting Aramis, the Dutch government is not just working toward national climate goals. It is also protecting its industrial economy and creating new business opportunities for the future.
If it succeeds, the Aramis project could guide other countries. They can learn how to balance economic growth with climate action. It also boosts Europe’s efforts to use CCS technology.
As the energy transition continues, partnerships between governments and businesses will be crucial. The Netherlands’ bold move to back the Aramis CCS project shows a clear commitment to finding practical solutions to the climate crisis — even as market dynamics shift and corporate strategies evolve.
