Port of Rotterdam as a key European hub for sustainable carbon

Promising carbon routes mapped out

The researchers have investigated what governments and the Port of Rotterdam can do to realize the transition to sustainable carbon sources. They have mapped out promising carbon routes and examined how these fit into the energy system. They looked at the possibilities with waste, biomass, and captured CO₂.
TNO's research shows that the following aspects are crucial for the transition to circular carbon routes in the chemical and fuel sector: stimulating market demand, utilizing synergy in this sector, increasing the availability of raw materials, and a robust government vision.

Strong starting position, but also challenges

Thanks to the strategic location of the Port of Rotterdam, with its well-developed infrastructure towards the hinterland and the ARRRA cluster (Antwerp-Rotterdam-Rhine-Ruhr Area), the Netherlands has a strong starting position to become a leader in a circular carbon economy. The region also offers a solid knowledge base and concrete opportunities in the field of CO₂ storage (CCS) and renewable energy projects.

There are also opportunities for synergy. The research shows that the chemical and fuel sector will increasingly want to use and produce the same circular molecules and raw materials in the future. This offers opportunities to join forces, leverage synergy benefits, and thereby produce circular carbon sources more efficiently and on a larger scale.

There are also major challenges. The market demand for sustainable circular products lags behind due to higher costs in the production and use of circular carbon sources compared to fossil sources, and consumers are only willing to pay more for circular products to a limited extent. There is also uncertainty about the future availability of promising circular carbon sources, such as bio-based materials and recycled plastic. Additionally, space constraints in the Port of Rotterdam and the long lead time of permit processes can lead to delays and discouragement in new investments.

Recommendations for acceleration

The report makes the following concrete recommendations to accelerate the transition to sustainable carbon.

Governments are called upon to make policy choices in the short term and remove uncertainties through a clear vision for the future of the chemical and fuel sector. Market demand for sustainable products can be stimulated by, for example, mandating a minimum share of circular raw materials in products, reducing excise duties or VAT on sustainable products, or including sustainability requirements in public procurement. Dutch governments, but certainly also the European Union (EU), play an important role in this.

To speed up permit processes, it is crucial that the competent authority is involved early on. Rules that promote circular innovations must be proactively established. Flexible regulations can support experiments and innovation, especially in innovation-oriented regions. Additionally, the availability of raw materials can be increased through more efficient and quality-oriented waste sorting and improved recycling processes.

It is also crucial to import a larger volume of sustainable biomass to the Netherlands so that the chemical and fuel sector can produce more sustainably on a large scale.

Finally, cooperation between industry, knowledge institutions, and governments is essential. The delivered system vision can better align policy and implementation, ensuring a targeted approach.