European Commission Approves €260 Million Belgian Support for Kairos@C Carbon Capture Project

The European Commission has approved a €260 million state aid measure proposed by Belgium to support a large-scale carbon capture and storage (CCS) initiative known as Kairos@C. The project is being developed jointly by Air Liquide Large Industry NV and BASF Antwerpen NV and aims to decarbonize key industrial processes in the region.

The initiative aligns with the objectives of the Clean Industrial Deal and is expected to support Belgium’s climate targets by establishing an integrated cross-border carbon capture and storage value chain.

Under the project, greenhouse gas emissions from existing industrial facilities operated by Air Liquide and BASF in Antwerp—which produce hydrogen, ammonia, and ethylene oxide—will be captured and transported for permanent underground storage in the North Sea. Over a period of 15 years, the project is expected to prevent approximately 20 million tonnes of net greenhouse gas emissions, while enabling the production of low-carbon hydrogen and low-carbon ammonia.

Kairos@C was previously selected as a beneficiary under the first large-scale call of the EU Innovation Fund in 2020, receiving a grant of more than €365 million. However, rising project costs driven by exceptional inflation in recent years created the need for additional financial support to enable implementation.

The newly approved Belgian support measure will be financed through the Flemish regional budget. It will include direct investment grants of €30 million for each beneficiary, along with additional support of €10 million per beneficiary annually over ten years, subject to the achievement of minimum greenhouse gas emission reduction targets.

The Commission assessed the measure under EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU) and the 2022 Guidelines on State Aid for Climate, Environmental Protection and Energy (CEEAG). According to the Commission, the aid facilitates the development of carbon capture, collection, and storage activities while supporting the decarbonization of key industrial processes.

The Commission concluded that the aid is necessary, proportionate, and limited to the minimum level required to enable the project. It also includes safeguards to prevent undue distortion of competition, such as restrictions preventing expansion of production capacity and mechanisms requiring the beneficiaries to return a portion of the aid if additional revenues are generated.

In addition, the project partners will share the technical knowledge developed through the initiative to help advance carbon capture technologies across Europe.

Based on this assessment, the European Commission approved the Belgian measure, concluding that the project’s environmental and climate benefits outweigh any potential impact on competition or trade within the European Union.