Reform UK leader Nigel Farage speaking in Aberdeen. Credit: Reform UK / YouTube
Nigel Farage’s party was told by Offshore Energies UK to rethink its plan to thwart clean energy.
LIVERPOOL – The UK’s largest oil and gas trade body has criticised Reform UK’s plans to “turn off the tap” on renewable energy.
Nigel Farage’s party has tried to present itself as the oil and gas industry’s closest ally, vowing to “drill, baby, drill” in the North Sea and scrap the windfall tax on excess profits, while meeting with oil executives, and courting donations from the sector.
However, on a panel at the Labour Party’s annual conference in Liverpool on Monday (29 September), a spokesperson for Offshore Energies UK (OEUK) criticised Reform’s plans to end state support for clean energy.
Natalie Coupar, communications and marketing director at OEUK – members of which include fossil fuel giants BP, Shell, ExxonMobil, TotalEnergies, and Equinor – said the group is “apolitical” but gives “hard truths to all parties”.
She said: “One of the things we’ve been saying to Reform very much is, you know, if you’re going to turn on the taps for oil and gas, there’s almost really no point if you’re just going to turn off the taps to renewables.
“That doesn’t help. We need to keep both those streams open.”
According to the Confederation of British Industry (CBI), the UK’s net zero economy grew by 10 percent in 2024, employing almost a million people in full-time jobs.
Coupar also said it was essential to “hold the consensus on tackling climate change and growing our energy future”.
A panel at 2025 Labour Party conference sponsored by Offshore Energies UK (OEUK). Credit: DeSmog
Reform’s Oil Campaign
Reform has vowed to stop all government subsidies for renewable energy, and has pledged to block solar and onshore wind farms in the local authorities it controls.
In May, the party’s deputy leader Richard Ticesaid: “Whether it’s planning blockages, whether it’s judicial reviews, whether it’s lawsuits, whether it’s health and safety notices, we will use every available legal measure to an extreme way in order to frustrate these people.”
Tice – who has said “there’s no evidence that man-made CO2 is going to change the climate” – met with senior oil executives in May and promised to approve new drilling licences “on day one” of a Reform government.
Last month, he pledged to overturn the UK’s ban on fracking for shale gas, which he calls “treasure beneath our feet”, and told the industry to “get ready”.
In April, Reform party treasurer and a billionaire property developer Nick Candy said he was trying to secure donations from oil and gas executives, claiming to have raised £100,000 from one, though this has yet to appear on Reform’s donations register.
As DeSmog has reported, 92 percent of Reform’s funding between the 2019 and 2024 general elections came from climate science deniers or those with highly polluting interests – a total of £2.3 million.
Since his election as an MP last year, Farage has spoken at a string of events in the U.S. organised by radical groups backing U.S. President Donald Trump’s pro-fossil fuel agenda. Last December, Farage launched the UK-EU branch of the Heartland Institute, a U.S. climate denial think tank.
Speaking at the Alliance for Responsible Citizenship conference in London in February, Farage claimed it was “absolutely nuts” for CO2 to be considered to a pollutant. However, he added: “I’m not a scientist. I can’t tell you whether CO2 is leading to warming or not, but there are so many other massive factors.”
Climate scientists at the UN’s Intergovernmental Panel on Climate Change (IPCC), the world’s leading climate science body, have stressed that “it is a statement of fact, we cannot be any more certain; it is unequivocal and indisputable that humans are warming the planet”.
Nigel Farage urges you to ignore facts and reality and be a climate science denier like him and his Deputy Richard Tice. He says that Reform UK has received £Millions and £Millions from the fossil fuel industry to promote climate denial and destroy the planet.Elon Musk urges you to be a Fascist like him, says that you can ignore facts and reality then.Nigel Farage reminds you that he’s the man that brought you Brexit and asks what could possibly go wrong.
Companies and states most responsible for climate change are also those working hardest to prevent climate action, new Carbon Majors report finds.
Half of the world’s carbon dioxide emissions in 2023 came from just three dozen companies, according to a new report released today by the Carbon Majors project, with the list dominated by coal, cement, and oil producers.
Saudi Arabia’s Saudi Aramco, the year’s worst offender, drove 4.4 percent of the world’s carbon dioxide pollution alone in 2023, the report found.
Five publicly-traded oil companies — ExxonMobil, Chevron, Shell, TotalEnergies, and BP — combined to produce an additional 4.9 percent of the year’s global carbon dioxide emissions from fossil fuels, the report adds.
The Carbon Majors database builds on the innovative work published by researcher Richard Heede of the Climate Accountability Institute (CAI) begun in 2013. For the first time, instead of attributing the build-up of industrial carbon dioxide and methane emissions to each of the world’s nations, Heede managed to trace those emissions to 90 specific “carbon major” companies. Last year, the nonprofit think tank InfluenceMap collaborated with CAI to produce major updates to the database — and today’s report marks the first annual update to that report, incorporating global data from 2023.
The year’s top carbon polluters were a mix of investor-owned and state-owned or national companies — but they have one thing in common.
“They’re some of the most obstructive actors towards climate policy,” Emmett Connaire, a senior analyst at the Carbon Majors project and one of the authors of the report, told DeSmog.
“I think it kind of kills the argument from industry that they’re not responsible for their CO2 emissions because we need fossil fuels to grow,” Connaire said, “when they’re the most obstructive and trying to keep up the demand for their products in the face of the overwhelming scientific opinion.”
Eight of the nine public companies most responsible for carbon emissions in 2023 were “highly active or strategic” in their climate lobbying, the report notes. And their lobbying efforts took aim at regulating climate-altering pollution or sought to impede the energy transition.“ Of these 9 companies, 5 score a D or below, indicating unsupportive positions on climate policy,” the new report finds, citing data from InfluenceMap’s LobbyMap database, which grades companies based on their alignment with the Paris Agreement. “The remaining 4 score only slightly higher at C-.”
InfluenceMap gave climate policy lobbying scores to the top 10 investor-owned companies, all oil, gas, and coal firms. Credit: Carbon Majors 2025 report
None of the five top oil companies named in the report immediately responded to a request for comment from DeSmog.
Investor-owned companies aren’t the only ones actively fighting to prevent climate action, the Carbon Majors report notes.
“State-owned companies are even more oppositional to climate regulation globally according to LobbyMap research,” the report finds, listing Saudi Aramco, Russia’s Gazprom, Mexico’s Pemex, and China’s CHN Energy among the worst actors.
“The ‘Carbon Majors’ are keeping the world hooked on fossil fuels with no plans to slow production,” former United Nations climate chief and Paris Agreement architect Christiana Figueres said in a response accompanying the report. “While states drag their heels on their Paris Agreement commitments, state-owned companies are dominating global emissions — ignoring the desperate needs of their citizens.”
A sizable majority — 80 percent — of the year’s 20 worst offenders are state-owned, the report found.
State-owned fossil fuel companies dominated global climate emissions in 2023, compared to public companies, the Carbon Majors report noted. Credit: Carbon Majors report 2025
Throughout history, responsibility for driving climate change is concentrated among a strikingly small number of corporations, the report suggests.
Two-thirds of all fossil fuel and cement emissions worldwide from 1750 through 2023 can be traced to just 181 entities, the report finds, adding that one-third of emissions came from just 26 companies.
These findings may have significant legal consequences. During 2024, New York state and Vermont both enacted “Climate Superfund” laws that aim to hold fossil fuel producers and oil refiners responsible for the damage done by their climate-altering products — and the Carbon Majors database is a proposed tool to assess companies’ relative liabilities, according to InfluenceMap. Its earlier findings have been cited in civil lawsuits brought by U.S. cities and counties against fossil fuel producers and an inquiry in the Philippines (which has seen some of the strongest typhoons in recorded history) into corporate responsibility for human rights violations.
The report approaches companies’ contributions to climate change based on production data — meaning that it focuses on the companies that do the drilling and mining (which helps avoid double-counting, Connaire told DeSmog). Those production figures are self-reported by companies but are widely used by governments to assess taxes and by investors in public companies. That methodology means that, for example, natural gas pipeline companies and natural gas utilities aren’t included in the report’s rankings.
Nonetheless, natural gas producers figure among the report’s list of all-time top polluters. That includes the former Chesapeake Energy, which first rose to prominence — and some notoriety — during the shale gas fracking boom only to implode into bankruptcy in 2020. Chesapeake later emerged from bankruptcy and has since merged into the newly formed Expand Energy.
As the Carbon Majors database traces emissions throughout history, it accounts for the effects of mergers and acquisitions in the tumultuous oil industry, known for its booms and busts. “For example, the multiple smaller companies into which the Standard Oil Trust was broken up have evolved to become some of the most recognizable companies in the database today,” the report notes. “Some are direct descendants of Standard Oil, like ExxonMobil, with both Exxon and Mobil as descendants separately, and Chevron. Others have resulted from mergers with descendants of Standard Oil, such as BP and ConocoPhillips.”
The Carbon Majors database traces the historical cumulative emissions of the top individual entities, such as Chevron or the former Soviet Union, from 1854 through 2023. Credit: Carbon Majors report 2025
It also calls attention to the importance of coal pollution — not just historically, but also in 2023.
“In 2023, coal remained the largest source of emissions, contributing 41.1 percent of emissions in the database,” the new report finds, “continuing a steady increase since 2016.”
Emissions from the cement industry — also a major driver of carbon pollution — increased significantly in 2023, rising 6.5 percent year-over-year, which the Carbon Majors report noted was “the largest relative rise” found. “Four of the five companies with the greatest relative increases in emissions in 2023 were cement companies — Holcim Group, Heidelberg Materials, UltraTech Cement, and CRH — with cement emissions seeing the largest relative rise among the four commodity types.”
Cement producers aren’t the only ones, however. In fact, emissions from most of the top emitters rose in 2023, the Carbon Majors report found.
“It is truly alarming that the largest fossil fuel companies continue to increase their emissions in the face of worsening natural disasters caused by climate change, disregarding scientific evidence that these emissions are harming us all,” said Tzeporah Berman, founder of the Fossil Fuel Non-Proliferation Treaty Initiative. “It is clearer than ever that dirty private companies, driven by profits and business as usual, will never choose to self-regulate. Governments around the world must use their power to end fossil fuel expansion and transition their economies before fossil fuel companies destroy the planet.”
Greenpeace activists display a billboard during a protest outside Shell headquarters on July 27, 2023 in London. (Photo: Handout/Chris J. Ratcliffe for Greenpeace via Getty Images)Neo-Fascist Climate Science Denier Donald Trump says Burn, Baby, Burn.
A small tax on just seven of the world’s biggest oil and gas companies could grow the UN Fund for Responding to Loss and Damage by more than 2000% and help address the costs of extreme weather events, according to new analysis published today by Greenpeace International and Stamp Out Poverty. The organisations are calling for a long term global tax on fossil fuel extraction, with year-on-year increases, combined with taxes on excess profits and other levies.
A ‘Climate Damages Tax’ would put a cost on every tonne of carbon emitted by the coal, oil and gas extracted – starting at $5 per tonne and rising each year thereafter. If it was imposed on ExxonMobil, Shell, Chevron, TotalEnergies, BP, Equinor and ENI it could raise $15 billion in the first year alone to help the world’s most climate-vulnerable countries pay for the escalating cost of damage caused by climate change. Currently, just $702 million has been pledged to the loss and damage fund, while the combined profits of those fossil fuel companies exceeds $148 billion.
Greenpeace activists display a billboard during a protest outside Shell headquarters on July 27, 2023 in London. (Photo: Handout/Chris J. Ratcliffe for Greenpeace via Getty Images)
Earlier this month, Barbados Prime Minister Mia Mottley, French President Emmanuel Macron and Kenyan President William Ruto stated their support for a Climate Damages Tax.
The briefing also highlights the financial costs of some of this year’s worst weather events that have been attributed to climate change, totalling over $64bn. These include Hurricane Beryl, Hurricane Helene, the heatwave in India in May, Typhoon Carina/Gaemi, the floods in Brazil in May, and the floods in Kenya and Tanzania in April. The costs of damage from the disasters surveyed range from US$2.9bn (Typhoon Carina) to US$ 25bn (heatwaves in India), and present just a fraction of the total cost of loss and damage globally over the last year.
A Climate Damages Tax imposed only on wealthy OECD countries could play an essential role in helping the poorest and most vulnerable to rebuild after climate-related disasters. Increasing annually by US$5 per tonne of CO2-equivalent based on the volumes of oil and gas extracted, the tax could raise an estimated US$900 billion by 2030 to support governments and communities around the world as they face growing climate impacts.
“While oil and gas giants keep raking in grotesque levels of profit from exploiting resources, the damages resulting from the industry’s operations are disproportionately borne by people who did not cause the crisis,” said David Hillman, Director of Stamp Out Poverty. “A climate damages tax – along with other levies on fossil fuels and high-emitting sectors – will make polluters pay for the cost of climate impacts, as well as supporting workers and affected communities in the transition to clean energy, jobs, and transport.”
“Who should pay? This is fundamentally an issue of climate justice and it is time to shift the financial burden for the climate crisis from its victims to the polluters behind it,” said Abdoulaye Diallo, Co-Head of Greenpeace International’s Stop Drilling Start Paying campaign. “Our analysis lays bare the scale of the challenge posed by climate loss and damage and the urgent need for innovative solutions to raise the funds to meet it. We reject Big Oil’s assault on people and democracy and call on governments worldwide to adopt the Climate Damages Tax and other mechanisms to extract revenue from the oil and gas industry.”
The Loss and Damage Fund was announced at COP27 in Egypt to help developing countries pay for impacts of natural disasters caused by climate change. Recently renamed the Fund for Responding to Loss and Damage (FRLD), it currently has US$702 million in pledged funds. According to Greenpeace International and Stamp Out Poverty’s calculations, a Climate Damages Tax levied on seven major international oil and gas companies would add in the first year alone US$15.02 billion, corresponding to over 21 times what is currently pledged to the fund.
Experienced climbers scale a rock face near the historic Dumbarton castle in Glasgow, releasing a banner that reads “Climate on a Cliff Edge.” One activist, dressed as a globe, symbolically looms near the edge, while another plays the bagpipes on the shores below. | Photo courtesy of Extinction Rebellion and Mark Richards
MetropolitanRepublic staff celebrating at the Silverback Awards, November 2023. (Credit: MetropolitanRepublic Uganda)
MetropolitanRepublic enlisted social media influencers to promote giant oil project as climate campaigners suffered beatings and arrests.
Last November, a beaming group of staff from MetropolitanRepublic collected their gorilla-shaped trophy at the Silverback Awards, Uganda’s top advertising and public relations gala.
The South African PR agency had won its prize for promoting the “sustainable development” of Uganda’s untapped oil reserves by French oil company TotalEnergies.
MetropolitanRepublic — which is part-owned by British communications giant WPP — described the brief for the award-winning “Action for Sustainability” campaign in its entry to the Silverback Awards: to devise an approach that “squashed all the negative PR” from protests against TotalEnergies’ plans for a 1,443-kilometre pipeline to export oil from Uganda’s Lake Albert via neighbouring Tanzania.
An accompanying video featured photographs of Ugandan anti-pipeline campaigners to illustrate this “backlash” and described them as “haters”.
“How do you launch a successful project off the back of this?” asks the narrator in the video. “Well, you develop a 360 PR campaign that retells your story the way it should be told.”
A screenshot from the award submission published on the Silverback Awards’ website. The Tilenga pipeline is a feeder pipeline under construction to carry oil from the Tilenga oilfields to the start of EACOP. (Credit: Silverback Awards)
Now, DeSmog can reveal that Ugandan police or military personnel have arrested, beaten, threatened, or harassed at least eight of the 15 campaigners pictured in MetropolitanRepublic’s award submission video.
These incidents — documented via video taken at protests, interviews with the campaigners, and police records — took place both before and after the video was published on the Silverback website in March.
There is no indication that MetropolitanRepublic’s campaign or the award submission led directly to any specific incidents affecting the activists. Nevertheless, DeSmog found that the agency engaged a network of social media influencers to post hundreds of times in support of TotalEnergies’ plans to mitigate the impact of the pipeline — even as protestors were being beaten and harassed.
“These PR firms are sponsoring our oppression,” said Hillary Innocent Taylor Seguya, one of the campaigners pictured in MetropolitanRepublic’s award submission video. “The more you push misinformation to the rest of the world, the more it means that you don’t care about our rights.”
Protestors from student human rights group Justice Movement Uganda opposing the East Africa Crude Oil Pipeline. (Credit: Bruce Nahabwe)
Since the pipeline project was first announced in 2017, advocacy groups have highlighted concerns over the displacement of communities in Uganda and Tanzania, damage to ecosystems and wildlife, and the climate impact of burning Uganda’s oil. The outcry has prompted some banks, insurers, and the PR company Edelman — which has represented oil companies for decades — to shun the project, known as the East Africa Crude Oil Pipeline, or EACOP.
In June this year, UN Secretary-General Antonio Guterres urged communications agencies to stop working for fossil fuel companies, saying PR campaigns run by “Mad Men fuelling the madness” were making the climate crisis harder to address.
MetropolitanRepublic, however, defended its role in promoting the pipeline — a joint venture between TotalEnergies and state oil companies from Uganda, Tanzania, and China.
One Saturday in April, Dutch engineers manoeuvred a giant drill into position in the reclaimed, industrial extension of the Port of Rotterdam, and began boring a hole under the seawall. Nearby, sections of metal pipe waited to be lowered into the breach.
The operation was a step forward for Europe’s most advanced scheme to capture carbon dioxide (CO2) from industry, then bury the planet-heating gas under the North Sea.
After years of delay, a joint venture known as Porthos, an acronym for Port of Rotterdam CO2 Transport Hub and Offshore Storage, is due to begin operating in 2026. It’s a 1.3-billion-euro joint venture between state-owned gas companies Energie Beheer Nederland (EBN) and Gasunie, and the Port of Rotterdam Authority. The CEOs of these organisations are due to join Sophie Hermans, the Netherlands’ minister of climate policy and green growth, and senior European Union officials, for a ceremony on Monday to toast the start of construction work at the site.
At full capacity, Porthos is expected to handle 2.5 million tonnes of CO2 captured annually from facilities operated by its four dedicated customers: Shell, ExxonMobil, and the hydrogen producers Air Liquide and Air Products. That total is equivalent to roughly 10 percent of the port’s emissions, and 1.5 percent of the Netherlands’ current CO2 output. Once captured, the gas will be pumped under the North Sea throughout a 15-year period, or until the storage space reaches a maximum estimated capacity of 37.5 million tonnes.
The cost to the Dutch taxpayer: up to 4 billion euros in subsidies.
Credit: Leon de Korte/Follow the Money.
Porthos relies on a technology known as carbon capture and storage, or CCS, which uses a chemical process to capture some of the CO2 that spews from a customer’s industrial chimneys. This trapped gas is then condensed and pumped through pipelines to underground storage sites, such as certain kinds of geological formations, or disused oil and gas wells.
Nevertheless, the backers of Porthos, and its much larger sister project Aramis — also being developed by EBN and Gasunie, along with Shell and French oil giant TotalEnergies — see them as the first nodes in a planned network of pan-European CCS infrastructure. The aim is to eventually funnel CO2 captured in the industrial heartlands of Germany, as well as throughout the Netherlands, to hundreds of storage sites under the seabed.
To its critics, however, Porthos is emblematic of the way oil and gas companies are securing subsidies for CCS schemes that present an appearance of climate action — but are never likely to attain the massive scale needed to make a dent in global emissions.
As Europe’s flagship project, Porthos is emerging as a litmus test for a critical question in the fight against climate change: Will carbon capture actually help reduce the emissions fuelling the crisis? Or will government backing for these technologies instead serve to preserve the fossil fuel business models that caused it?
Sections of pipe for the Porthos CO2 pipeline, intended to take captured carbon emissions and inject them under the North Sea, await burial at the Port of Rotterdam. Credit: Michael Buchsbaum.
Ambitious Plans
With intensifying heatwaves, floods and fires underscoring the threat the climate crisis poses to Europe, the EU has agreed to slash its carbon emissions to net zero by 2050, with an interim target of a 90-percent reduction relative to 1990 levels by 2040. Given the scale of that challenge, and in line with lobbying by the fossil fuel industry, policy-makers have assumed a major role for carbon capture projects in cleaning up industry.
“Reducing emissions is not enough,” reads a European Commission website on CCS. “To achieve our climate ambitions, we will also need to capture, utilise and store carbon.”
Climate campaigners argue, however, that the technology has secured official backing in large part because it helps governments persuade voters they are taking climate action, while stopping short of the kind of rapid, fundamental transformation of economies needed to end the use of fossil fuels.
In May, the EU adopted the Net Zero Industry Act, obligating oil and gas producers to develop 50 million tonnes of annual CO2 storage capacity across the continent by 2030 — roughly equivalent to today’s global total. More ambitiously, the act targets approximately 280 million tonnes of annual CO2 storage capacity by 2040, increasing to a staggering 450 million tonnes by 2050.
Environmental groups such as E3G, the Institute for Energy Economics and Financial Analysis and European Environmental Bureau doubt such targets are feasible, given the thousands of kilometres of pipelines that would have to be built, and the dozens of projects that would have to be designed. A lack of technical and geological know-how combined with potential local opposition could also slow fossil fuel companies’ plans.
“The industry needs to commit to genuinely helping the world meet its energy needs and climate goals —which means letting go of the illusion that implausibly large amounts of carbon capture are the solution,” said Fatih Birol, executive director of the Paris-based International Energy Agency (IEA), in the introduction to a report on clean energy transitions for oil companies published in November.
Despite the oil industry often citing scenarios from the Intergovernmental Panel on Climate Change that include significant deployments of CCS, the U.N.-backed body also considers the technology the least efficient, and one of the most expensive, climate tools. In their Sixth Assessment report, the IPCC’s scientists wrote that “even if implemented at its full potential, CCS will account for only 2,4% of the world’s carbon mitigation by 2030 due to its low effectiveness and high cost.”
And Europe is nowhere near close to meeting its carbon capture targets. Today, only 2.7 million tonnes of CO2 is being captured annually across the continent, including in Norway and Iceland, according to the IEA. Porthos’ backers are therefore hailing the project as a crucial step towards fulfilling the continent’s decarbonisation plans — starting with its largest port.
“If we want to reach our climate target, we will need CCS,” Willemien Terpstra, CEO of Gasunie, told DeSmog.
Still, even backers of the technology acknowledge that deployment is lagging. To meet the EU’s target of capturing 280 million tonnes of CO2 annually by 2040 would require 651 projects, said Chris Davies, director of industry group CCS Europe. Each would have to capture more than 400,000 tonnes per year, he told DeSmog.
To date, 50 years after the first CCS projects were started in a Texas oilfield, only about 40 projects are operating globally, with the combined potential to capture just over 50 million tonnes of CO2 per year. However, almost 80 per cent of the CO2 being captured is injected underground to pump more oil — which when refined and burned, adds more CO2 into the atmosphere.
While there is no estimate as to how long it would take to construct hundreds of projects, it is clear that time is running out, Davies said.
Capturing this amount by 2040 requires that construction on all these projects begin no later than early 2038: “So we have less than 5,000 days,” said Davies.
Since Porthos’ backers took a final investment decision last year, no other CCS project “has been given the green light to put a shovel in the ground”, he added.
Cleaning up the Quayside
With docks and quays stretching from its old town centre to the ocean over 40 kilometres away, the Port of Rotterdam covers an area almost twice the size of Manhattan, and handles nearly 440 million tonnes of freight each year, roughly the equivalent of more than 1,200 Empire State Buildings stacked on top of each other.
Not only is Rotterdam a massive cargo port, it’s also one of the largest hubs for energy in Europe, including oil. Counting oil, coal, and liquefied natural gas, the port boasts that some 13 per cent of all the energy used throughout Europe passes through it.
Most of the oil is destined for one of the port’s four refineries, including the giant Shell Pernis facility, as well as sites run by BP and Exxon. (Reducing emissions from the refineries is one of Porthos’ key aims).
All this activity generates tremendous amounts of carbon pollution: The port emitted 20.3 million tonnes of CO2 in 2023.
The port intends to slash its emissions by 55 per cent by 2030, then achieve climate neutrality by 2050.
The port argues that it can reduce its emissions to its target of 9.3 million tonnes by 2030 by:
Storing up to 5.8 million tonnes of emissions annually by the end of the decade through its Porthos and Aramis projects
Reducing emissions by another 5.7 million tonnes by shutting down, as legally required, itsremaining coal-fired power plants by 2030, building on savings made by previous coal plant closures
Greening its operations with electrification, and “green” hydrogen made with wind and solar
“Porthos and Aramis by far contribute the most to the Netherlands’ CO2 reduction targets…the Dutch goals cannot be met without those projects,” Hans Coenen, Executive Board member of energy company Gasunie, told Follow the Money, the Dutch investigative journalism platform that co-published this story with DeSmog.
The Port of Rotterdam’s only real CO2 reductions so far stem from the shuttering of several coal-fired power plants . Credit: Michael Buchsbaum.
Taxpayers Foot the Bill
Crucially, Porthos will not be capturing any CO2 itself, instead handling and storing CO2 captured by Shell, Exxon, Air Liquide and Air Products. Porthos itself consists of a new 30-kilometre pipeline system leading to a compression station. From there, CO2 will be pumped to a repurposed gas drilling platform 20 kilometres offshore, and injected into a depleting gas field for final storage.
To ensure emissions are captured, in 2021, the Dutch government allocated Shell, Exxon, Air Liquide and Air Products a combined 2.1 billion euros via its SDE++ scheme to subsidise company decarbonisation projects.
As it stands, under a long-running scheme known as the European Emissions Trading System (ETS), these companies are already required to buy credits for each tonne of CO2 they emit.
Although the credits currently trade at just under 69 euros per tonne, the price could almost triple by 2035, according to BloombergNEF.
By disposing of some of their emissions via Porthos, its customers save money by having to purchase fewer credits.
But, if buying ETS “emission certificates” is cheaper for them than storing the gas via Porthos, then the Dutch government will make up the cost difference using up to 2.1 billion euros allocated under the SDE++ scheme.
This means that whatever happens, the companies face limited risk, and potentially large savings, if they capture emitted CO2 instead.
The port says this arrangement enables the companies “to cut back their carbon emissions without weakening their respective competitive positions.”
Alternatively, without state support, “Porthos would not have gotten off the ground and this project would not have been able to contribute to achieving the climate objectives,” Ellen Ehmen, Exxon’s community relations manager in the Netherlands, told DeSmog.
Combining various other EU and Dutch government subsidies associated with the project, with the 1.3 billion euro cost to state-owned companies to build it, and up to 2.1 billion in carbon capture subsidies, the overall cost to the state could approach or even exceed 4 billion euros.
In other words, Dutch and European taxpayers are picking up the bill for cleaning up these highly profitable companies’ carbon pollution.
In March, the Netherlands Court of Audit warned in a report that the way the project has been structured means that the state has assumed a disproportionate level of risk relative to industry.
Coenen, of Gasunie, says that he wasn’t surprised by these findings: “We decided deliberately to accept a low return on investment on Porthos, because we find it important to kickstart the project.”
Experimental Projects
Many climate advocacy groups, academics and policy experts have long warned of the dangers of relying on carbon capture projects, arguing that they provide fossil fuel companies with a justification for pumping ever more oil and gas.
Seeking to allay those fears, the European Commission advised in February that carbon capture should only be used in sectors where industry argues that emissions are particularly difficult or costly to cut, for example steel, cement, aluminium, chemicals and waste-to-energy.
But Porthos’ customers are using carbon capture for very different purposes: they’re either developing never-before attempted “low-carbon” projects that may be deployed at some point in future, or capturing a portion of the emissions now being generated by producing hydrogen used in the port’s oil refineries.
Shell, the first company to agree to partner with Porthos, is slated to become the project’s largest single customer, having committed to deliver 1.2 million tonnes of CO2 annually — captured mainly from its sprawling Pernis refinery complex, Rotterdam’s biggest. Shell also pledged to capture 820,000 tonnes a year from its to-be constructed biofuels facility, which is designed to produce so-called sustainable aviation fuel, as well as renewable diesel made from waste oil.
This so-called HEFA (hydroprocessed esters and fatty acids) plant is “essentially where the Porthos project starts,” said Nico van Dooren, director new business, hydrogen infrastructure, transport and storage with the Port of Rotterdam, during a media tour of the Porthos project in May.
Carbon capture “is the low hanging fruit,” Shell spokesperson Marc Potma said during the tour. “We have always said we believe in CCS for the future, but it’s never going to be the only answer. One must also invest in renewable sources, which is why we invested in the biofuels factory.”
Fellow oil and gas major Exxon’s CCS plans at Porthos are also highly experimental. Exxon says it plans to capture CO2 from a pilot project to test a new technology known as carbonate fuel cells — which the company says could help capture CO2 from industry more efficiently than existing methods, while also generating electricity, heat and hydrogen. This technology has never been proved at scale.
Also the recipient of EU funds, Exxon’s pilot plant is expected to be constructed in 2025, and start operations in 2026. Unlike Shell, Exxon has not announced any plans to use Porthos to capture emissions from its own oil refinery at the port.
Porthos’ two other customers are both large-scale hydrogen manufacturers who are producing the gas for use in oil refining — today one of hydrogen’s main uses.
As part of its participation in Porthos, U.S.-based Air Products announced in November it would build a carbon capture project at its existing hydrogen production facility in Rotterdam. Billed as the largest such facility in Europe, the project aims to help the company more than halve its CO2 emissions within the Port, while supplying most of the resulting hydrogen (known as “blue” hydrogen since some of the CO2 generated during the production process will be captured) for use in the nearby Exxon refinery.
Just weeks later, in December 2023, French rival Air Liquide announced it would also retrofit the company’s existing hydrogen facility in Rotterdam with carbon capture, using a proprietary technology that has only been tested at a smaller facility in Port-Jérôme-sur-Seine, France.
Giant new wind turbines tower over Rotterdam’s oil refineries, holding out the promise of an emissions-free future as they replace coal-fired power. Credit: Michael Buchsbaum.
Aramis Following Porthos
As workers dig trenches and bury Porthos’ pipelines around Rotterdam’s port, Shell and TotalEnergies — together with Gasunie and EBN — are working on the larger Aramis project. They want to funnel and bury CO2 emissions captured in Germany, Europe’s biggest emitter, and send them via a yet-to-be-built pipeline project known as the Delta Rhine Corridor.
By 2028, two years after Porthos is due to come online, the first phase of Aramis is scheduled to transport up to 7.5 million tonnes of CO2 for storage — also thanks in part to EU subsidies.
To connect Rotterdam to Belgium, Gasunie is also working on a so-called Delta Schelde Corridor. “It’s going to be one interconnected system in order to help our industry,” Gasunie’s Coenen told Follow the Money.
Signalling EU support, in mid-June, the European Climate, Infrastructure and Environment Executive Agency, or CINEA, awarded Aramis 124 million euros in subsidies under the CEF Energy fund. CINEA also granted 33 million euros in funds to another planned Rotterdam CCS hub, known as CO2next.
The bigger question, however, is whether these projects will be completed on time.
At the end of June, the then Dutch Minister of economic affairs and climate policy, Rob Jetten, told parliament that the Delta Rhine Corridor pipelines wouldn’t be completed before 2032 — dealing a blow to the pace of CCS development.
In early July, Shell “temporarily” paused construction of its crucial biofuels plant that is supposed to produce 820,000 tonnes a year. Shell now says production will only begin “towards the end of the decade,” said Shell spokesperson Wendel Broere.
Sections of the Porthos CO2 pipeline are now being buried around Rotterdam’s industrial port. Credit: Michael Buchsbaum.
A Temporary Solution?
Regardless of when they come online, Porthos and the other planned Dutch CCS projects are generally presented as temporary solutions giving industry time to wean itself off fossil fuels — but how long that transformation will take remains unclear.
With billions of euros being invested, “you just have to count on a few decades,” Gasunie’s Coenen said.
Even as Porthos, Aramis and similar projects inch forward, further questions loom: Who will pay the enormous cost of rolling out the network of carbon capture facilities and pipelines needed to ferry CO2 from Europe’s industry to disposal sites in the North Sea via Rotterdam? And can such a project be completed in anything like the timeline demanded by the EU’s carbon capture targets?
Another unknown is how investing in these and other CCS projects will lead to a reduction in overall emissions — particularly since so many planned CCS projects involve building new fossil fuel infrastructure, such as gas-fired power stations or blue hydrogen facilities, rather than retrofitting existing industries. It is also unclear how subsidising industries to adopt CCS will compel fossil fuel companies to accelerate the shift to renewables.
Berte Simons, business unit director of CO2 transport and storage systems at EBN, the Dutch state-owned gas company, said that companies not only have to start capturing emissions, but stop producing them.
“There needs to be an end date to using CCS from fossil sources,” she said. “The sooner [fossil fuel companies] are able to green their portfolio, the quicker they can start with that, the better.”
For many climate advocates, the danger is that carbon capture will simply prolong business as usual — while soaking up billions of euros in subsidies.
Relying on CCS “isn’t a sensible climate mitigation strategy or even a proper carbon management strategy,” Lili Fuhr, deputy director of the Washington D.C.-based Center for International Environmental Law’s Climate and Energy Program, told DeSmog. “It’s really an escape hatch for an industry with its back against the wall faced with an energy transition that is gaining support and is becoming a reality because renewable energies are so cheap.”
This story was corrected on August 29, 2024 to clarify that the cost to taxpayers could be “up to” 4 billion euros (rather than “at least”), and show the various forms of subsidy included in that figure.
