The Flemish government is set to invest €1.2 billion in companies that want to capture their CO2 emissions rather than release them. Minister-President Matthias Diependaele announced the planned investment.

In February, the government announced a €2 billion investment in Flemish industry. These funds are intended to support struggling companies and make them future-proof.

One billion will go to carbon capture and storage (CCS) projects, focusing on energy-intensive industries covered by the European Emissions Trading System (ETS), where CO2 emissions are difficult to avoid. CCS is a complex undertaking that cannot succeed without subsidies; existing projects across Europe all require government backing.

Kairos

In addition, €800 million is allocated to technology-neutral decarbonization, including investments in electrification and process innovation. Finally, 200 million euros is going to the Kairos@C project, involving the chemical company BASF and the gas distributor Air Liquide at the Port of Antwerp. 

The project is named after Kairos (Ancient Greek: Καιρός), a figure in Greek mythology who personifies the right moment, the suitable occasion, and ultimate timing.

The aim is to capture, liquefy, ship, and store up to 14 million tons of CO₂ in an empty North Sea gas field over 10 years. The project is receiving support from the European Innovation Fund –amounting to over €350 million – and Flanders is prepared to contribute more than €260 million on top of that. The Kairos@C project is considered crucial for capturing CO₂ emissions in Flanders.

‘Largest level of support’

Minister of Energy and Climate Hans Bonte believes the support provides companies with the confidence to invest heavily in electrification and decarbonization.

“By sharing risks and linking support to effective CO₂ reduction, we are accelerating the climate transition and anchoring strategic industry and jobs in Flanders.”

“This is the largest level of support we have ever offered to Flemish industry,” says Minister-President Diependaele. “We are providing both our energy-intensive companies and businesses across the broader industrial sector with clarity and certainty to invest here in Flanders in the industry of tomorrow.”

Minister-President Matthias Diependaele (N-VA) hopes that his support will encourage companies to invest, as that would give him confidence that the chemical, steel, and cement industries will not be leaving Flanders anytime soon.