Netherlands to spend €185 million on salt firm Nobian’s rapid plan to zero emissions
The Dutch government closed its first-ever deal using a tailor-made approach to subsidize and incentivize a specific company to reduce greenhouse gas emissions. Salt and chemical manufacturer Nobian is eligible to receive up to 185 million euros in subsidies as part of a joint investment of 645 million euros by the company and the Dutch government intended to nearly eliminate the company’s carbon dioxide emissions by 2030.
The company produces about a half-million tons of carbon dioxide annually, using hundreds of millions of cubic meters of natural gas. The business will use the funding to switch its manufacturing operations from natural gas to electricity, and make its production processes more energy-efficient, said the Ministry of Climate and Green Growth on Thursday.
By hitting the 2030 target, Nobian would actually achieve their net-zero goal ten years faster than originally planned. The improvements will also lead to a reduction of nitrogen emissions by about 400 tons, bringing those figures closer to zero. The company will reduce its natural gas consumption by 300 million cubic meters compared to 2020 figures.
The ministry said that accounts for roughly 1 percent of all gas use in the Netherlands, “equivalent to the consumption of approximately 250,000 households.” This will be led by replacing gas-fired water evaporation facilities with industrial heat pumps at salt production sites in Hengelo and Delfzijl.
“In addition, Nobian is accelerating the replacement of the electrolysis capacity for chlorine production in Rotterdam for the latest technology. A circular project for the recovery of salt from residual flows is also part of the agreement,” the ministry said.
The changes in Rotterdam will reduce annual energy use by 135 gigawatt-hours compared to 2020, the same amount needed to power 50,000 households. This should create more space on the overcrowded energy grid, as a further benefit.
Additionally, water savings should equate to about 1.7 million cubic meters, and the company will see dissipation of heating fall by about 90 megawatts. The company’s executives said the first phase of upgrades should be online in 2027, suggesting it could not have been accomplished without government incentives.
The deal could be the first of many, said Climate Minister Sophie Hermans. Current and previous Cabinets have spent years trying to work out sustainability plans with the biggest emitters of greenhouse gasses in the Netherlands.
“With the tailor-made approach, we are encouraging companies to become more sustainable, to innovate and to” make green improvements faster,” she said. “This process has yielded valuable insights that will help with the agreements with other companies that are yet to follow.”
“As the largest producer of salt in Western Europe, Nobian sources 90 percent of its pure salt in the Netherlands, which plays a crucial role in the Dutch and European economy for the production of essential chemicals and materials,” said Nobian CEO Michael Koenig. “Today we emphasise our ambition to be one of the most sustainable chemical companies in Europe and to reduce our emissions to zero by 2030.”
