Dutch CO2 storage project nearly three times over budget
The first large CO2 storage project under the North Sea is nearly three times over budget. The Porthos project launched in 2018 with a price estimate of 400 to 500 million euros. The costs have now risen to 1.3 billion euros, NRC reports after speaking to those involved. The project has also been delayed due to legal proceedings.
Porthos is one of the first projects for large-scale storage of the greenhouse gas CO2 in empty gas fields under the seabed, the North Sea in this case. Proponents see CO2 storage as an important way to reduce the emissions of this greenhouse gas and thus combat dangerous climate change. But there are also doubts whether the approach is technically and financially feasible on a large scale. Porthos is, therefore, being followed with great international interest.
According to the operators - Gasunie, Port of Rotterdam, and EBN - the cost increase is mainly due to the sharp rise in inflation, which has made materials more expensive. The global energy crisis also played a role. Due to the threatened energy insecurity in 2022, there was a rush on components like pipelines with which countries tried to secure their energy supply, making them harder and pricier to come by.
The project’s delay is mainly due to legal proceedings filed by Mobilization for the Environment (MOB). The environmental organization believed that too much nitrogen was emitted during the construction, endangering nature. The Council of State declared those concerns unfounded in August, but it caused a delay of several months. The delay further increased the costs, the operators said. Many materials and products became more expensive while they waited for legal clarity before ordering.
