Porthos is developing a project in which CO2 is transported and stored in empty gas fields under the North Sea. The project aims to construct a pipeline in the Rotterdam port area, to which multiple companies can connect. The Porthos infrastructure is set up as an open access and non-discriminatory system.
Porthos has a process for making agreements with companies that are interested in supplying CO2: from an Expression of Interest, via a Joint Development Agreement to a transport and storage contract.
Expression of Interest
In the Spring of 2019, Porthos gauged the interest of industries in the project. This so-called Expression of Interest procedure showed that companies had sufficient interest to further develop the project. Porthos then started to focus on closing Joint Development Agreements with companies.
Joint Development Agreement
In the autumn of 2019, Porthos has signed Joint Development Agreements (JDA) with Air Liquide, Air Products, ExxonMobil and Shell. Those four companies are called the JDA partners.
With the JDA , Porthos and the companies agree to – in short – jointly work towards the conclusion of transport and storage contracts. Porthos commits to continue with the permit procedures and the technical preparation of the project. The companies commit to start with the permit procedures and the design of their capture installations.
Regular contacts are maintained on an informative basis with companies that are interested in Porthos, but were not yet able to conclude a Joint Development Agreement in the autumn of 2019.
Transport and storage contract
The next step is to sign transport and storage contracts. Important is that our JDA partners can apply for government SDE++ subsidies in the autumn of 2020.
SDE++ subsidy is necessary to bridge the difference in costs for ETS and the total costs for capture, transport and storage of CO2. This helps the companies to remain competitive while contributing to achieving the Dutch Climate Agreement objectives.