• The European Commission approved $283 million (€260 million) in Belgian state aid to support the Kairos@C carbon capture and storage project led by Air Liquide and BASF in Antwerp.
• The project aims to prevent roughly 20 million tonnes of greenhouse gas emissions over 15 years by capturing CO2 from industrial hydrogen, ammonia and ethylene oxide production.
• Captured CO2 will be transported to permanent storage sites in the North Sea, helping establish a cross-border CCS value chain aligned with the EU’s Clean Industrial Deal.

The European Commission has approved $283 million (€260 million) in Belgian state aid to support a large-scale carbon capture and storage project designed to decarbonize heavy industry in Antwerp, one of Europe’s most concentrated industrial clusters.

The funding will support Kairos@C, a joint initiative by Air Liquide Large Industry NV and BASF Antwerpen NV. The project focuses on capturing carbon emissions from existing industrial facilities producing hydrogen, ammonia and ethylene oxide, before transporting the captured CO2 to permanent underground storage in the North Sea.

By connecting capture infrastructure to offshore storage, the project aims to build an integrated cross-border carbon capture value chain capable of operating at industrial scale.

European regulators say the project could prevent approximately 20 million tonnes of greenhouse gas emissions over a 15 year period while enabling the production of lower carbon hydrogen and ammonia. Both products are considered essential to the decarbonization of sectors such as chemicals, shipping, fertilizers and steel.

Financing Structure and Inflation Pressures

The Kairos@C project previously secured more than $398 million (€365 million) from the EU Innovation Fund under its first large-scale funding call in 2020. However, rising construction and infrastructure costs across Europe delayed final investment decisions.

Belgium notified the additional aid package after project developers warned that inflation and cost increases had made the original financing structure insufficient to launch the project.

Under the approved measure, the Flemish regional government will provide the funding through a mix of upfront grants and performance-based payments tied to emissions reductions.

Each beneficiary will receive a direct investment grant of $33 million (€30 million). This will be complemented by an additional $11 million (€10 million) per year paid in ten annual installments, provided the project achieves minimum greenhouse gas reduction targets.

The structure reflects a growing trend in European industrial policy where public funding is tied to measurable climate outcomes rather than simple capital support.

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Commission Review Under EU State Aid Rules

The European Commission evaluated the measure under Article 107(3)(c) of the Treaty on the Functioning of the European Union and the bloc’s 2022 Guidelines on State Aid for Climate, Environmental Protection and Energy.

After reviewing the project’s design and financing model, regulators concluded that the funding meets EU competition and environmental requirements.

According to the Commission, the measure supports “the development of an economic activity,” specifically the capture, collection and storage of CO2 alongside the decarbonization of ammonia, hydrogen and ethylene oxide production.

The Commission also determined that the project would not proceed without public support. The ruling notes that the aid has an “incentive effect,” meaning the investment would likely not occur under current market conditions without government backing.

Officials further concluded the aid is necessary and proportionate. The funding is limited to the minimum required to make the project viable and includes safeguards designed to prevent market distortion.

For example, the measure does not increase the production capacity of the participating companies. If the project generates additional net revenues beyond expectations, part of the public support must be returned to the Belgian government.

Another condition requires the companies to share technical knowledge developed through the project. This provision aims to accelerate wider adoption of carbon capture technologies across European industry.

Industrial Decarbonization and the Clean Industrial Deal

The approval aligns with the European Union’s broader effort to decarbonize energy intensive industries while maintaining global competitiveness.

Carbon capture and storage is increasingly viewed by policymakers as essential for sectors where direct electrification or fuel switching remains difficult. Hydrogen production, ammonia manufacturing and chemical processing fall squarely into that category.

The Kairos@C project fits within the EU’s Clean Industrial Deal framework, which seeks to combine climate policy with industrial strategy by supporting technologies capable of reducing emissions while preserving domestic manufacturing capacity.

For corporate leaders and investors, the decision highlights how state aid is becoming a central tool in Europe’s industrial decarbonization strategy. Governments are increasingly willing to underwrite early infrastructure for carbon capture networks, hydrogen production and other emerging climate technologies.

The Antwerp project may also serve as a template for cross-border carbon storage systems across the North Sea region, where multiple industrial hubs are exploring similar transport and storage partnerships.

As Europe accelerates climate targets for 2030 and beyond, projects that combine public funding, industrial partnerships and measurable emissions reductions are likely to define the next phase of large-scale decarbonization.

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