The global energy sector is transitioning, with major oilfield service companies under pressure to cut emissions while staying profitable. Baker Hughes, Halliburton, and Schlumberger (SLB) recently reported their earnings.

However, here we reveal how each company is balancing investments in oil, gas, and low-carbon initiatives. Thus, beyond financials, their sustainability goals and net-zero targets set them apart.

Let’s dive in.

Baker Hughes Reports Mixed Q1 2025 Results

Baker Hughes reported $6.43 billion in revenue for the first quarter of 2025. This marked a 13% drop from the previous quarter but a slight increase of $9 million compared to a year ago. The year-over-year growth was mainly due to stronger performance in Industrial & Energy Technology (IET), partially offset by weaker results in Oilfield Services & Equipment (OFSE).

Net income under U.S. GAAP was $402 million, down $777 million from the previous quarter and $53 million lower year-over-year. However, adjusted net income, which excludes certain items, stood at $509 million. This was also down 27% from the previous quarter but up 19% compared to last year.

Advances in Pipeline Compression and Data Center Power

It also secured a major pipeline project in North America, supplying two compression stations with 10 Frame 5/2E turbines and compressors.

Additionally, in data centers, the company won contracts for over 350 MW of NovaLT™ turbines. It partnered with Frontier Infrastructure to deliver large-scale carbon capture and clean power solutions using its full technology suite.

Lorenzo Simonelli, Baker Hughes chairman and chief executive officer, said,

“Baker Hughes started the year strong, building on the positive momentum from 2024 and setting multiple first-quarter records. Our continued transformation initiatives and strong execution continue to drive structural margin improvement across both segments. The operational transformation and streamlining efforts have created a solid foundation to optimize margins and enhance returns, even in a challenging environment.”

Driving Sustainability Forward: Baker Hughes’ 2024 Progress

Baker Hughes continues to lead the energy transition by striving to become a sustainable pioneer across all its operations. It aims to reduce Scope 1 and 2 emissions by 50% by 2030 compared to 2019 levels.

Major Progress on Emissions Reduction

The company reported strong environmental achievements this year:

• Scope 1 and 2 emissions dropped 29.3 percent compared to the 2019 base year, reaching 564,728 metric tons of CO2e.
• Scope 1 emissions, covering fleet, field activities, and facilities, declined by 22.6 percent to 386,367 metric tons of CO2e.
• Scope 2 emissions from purchased electricity decreased by 40.6 percent (market-based) and 30.7 percent (location-based).

Despite these achievements, it recorded a 16.5% increase in Scope 3 emissions intensity, mainly due to higher demand for high-efficiency gas turbines and electric motors.

Hands-On Approach to Emissions Reduction

Baker Hughes prioritizes direct emissions reduction over carbon offsets or virtual power purchase agreements. It improves energy efficiency, integrates renewable electricity across facilities, and deploys low-carbon technologies.

Additionally, it supports ecosystem projects through the Baker Hughes Foundation. However, these initiatives are not used for carbon credits. This hands-on approach ensures tangible, measurable progress and strengthens the company’s commitment to sustainability.

Carbon-Free Clean Energy

• In 2024, Baker Hughes advanced clean energy adoption using renewable or zero-carbon electricity. Its use rose from 13.5% in 2019 to 34.2% in 2024.
• On-site solar has expanded to 15 sites, and renewable and nuclear energy use has cut emissions by 89,734 metric tons of CO2e since 2019.

Key Highlights:

• The Woodlands, Texas, and Broussard, Louisiana, sites fully transitioned to 100% renewable electricity.
• In Thailand, the partnership with Cleantech enabled on-site solar panels to generate about 18% of the site’s annual electricity.

Nuclear energy plays a huge role in the company’s low-carbon future. It supports conventional nuclear power and small modular reactors. It emphasizes safety, community involvement, and efficient waste management while ensuring reliable operations.

Thus, the strategic use of renewable energy credits, Zero-Emission Certificates, and local certificates supported these improvements.

Halliburton Posts Lower Q1 2025 Earnings as North America Revenue Falls

Halliburton Company reported a net income of $204 million, or $0.24 per diluted share, for the first quarter of 2025. This marked a sharp decline from $606 million, or $0.68 per share, in the same period last year.

When adjusted for impairments and other charges, Q1 2025 net income came in at $517 million, or $0.60 per share, down from $679 million, or $0.76 per share, in Q1 2024.

Total revenue for the quarter dropped to $5.4 billion from $5.8 billion last year. Operating income was $431 million, down from $987 million a year ago.

Geographical Revenue Highlights

In North America, revenue dropped 12% to $2.2 billion due to lower stimulation activity in the US Land and fewer tool sales in the Gulf.

International revenue dipped 2% to $3.2 billion. Latin America revenue fell 19% to $896 million from slower activity in Mexico and lower tool sales. However, Europe/Africa revenue rose 6% to $775 million, driven by stronger activity in Norway, Namibia, and the Caspian.

Jeff Miller, Chairman, President, and CEO, said,

“I am pleased with our performance in the first quarter. We delivered total company revenue of $5.4 billion and adjusted operating margin of 14.5%. Our first quarter international tender activity was strong, Halliburton won meaningful integrated offshore work extending through 2026 and beyond. Customers awarded Halliburton several contracts that demonstrate the strength of our value proposition and the power of our service quality execution.”

Halliburton’s Emissions and Clean Energy Progress

Halliburton is committed to reducing emissions to help the oil and gas industry become cleaner.

It aims to:

• Cut Scope 1 and 2 emissions by 40% by 2035 from 2018 levels
• Work with top suppliers to track and reduce Scope 3 emissions

Low-Carbon Electric Fracturing Fleets

Hydraulic fracturing made up 80% of its emissions. As demand in North America rose, total Scope 1 and 2 emissions increased by 2% from the previous year. However, since 2018, it has lowered its emissions per operating hour by 16% by investing in electric fracturing fleets.

The company now uses smarter fracturing tools that give customers more power options and better efficiency. It’s also reusing older equipment in smarter ways to lower emissions and boost returns.

Strong Climate Commitments

Last year, the company focused on three areas to lower its carbon footprint. They were:

• Helping oil and gas customers lower their emissions
• Using its skills for low-carbon projects like carbon capture and geothermal
• Backing startups through Halliburton Labs to support new energy ideas

Notably, they are also using the carbon assessment tool on big projects in Mexico, Norway, Iraq, and Namibia. It identified possible emissions from equipment, transport, and its products. This helps customers plan cleaner operations from the start.

Growing in Low-Carbon Solutions

Halliburton has invested largely in carbon capture, geothermal, and other low-carbon energy projects. Some notable projects in these fields include:

Carbon Capture (CCUS)

As said before, it works with customers to offer full CCUS solutions. These include tools like the NeoStar™ CS safety valve and CorrosaLock™ cement, built for harsh CO₂ storage conditions. Halliburton is also teaming up with other energy players to develop more CCUS options.

Geothermal Energy

Being a pioneer in geothermal, it supports every stage of a geothermal project from testing and drilling to production. In 2024, it offered tools like GeoESP® pumps and Thermalock™ cement for hot, tough environments. It also provided strong drill bits, smart drilling fluids, and custom well designs for deep, complex projects.

Schlumberger (SLB) Q1 Update: Revenue Drops, But Digital and Cash Flow Stay Strong

SLB reported $8.49 billion in revenue for the quarter, down 3% compared to last year. Net income also dropped 25%, landing at $797 million.

• GAAP earnings per share (EPS) came in at $0.58, down 22%.
• Adjusted EPS, excluding one-time items, was $0.72, a 4% decrease.
• Adjusted EBITDA stood at $2.02 billion, down 2%.

However, cash flow from operations surged to $660 million, up $333 million year on year. The board also approved a $0.285 per share quarterly dividend.

SLB Chief Executive Officer, Olivier Le Peuch, commented,

“First-quarter adjusted EBITDA margin was slightly up year on year despite softer revenue as we continued to navigate the evolving market dynamics.

It was a subdued start to the year as revenue declined 3% year on year. Higher activity in parts of the Middle East, North Africa, Argentina and offshore U.S., along with strong growth in our data center infrastructure solutions and digital businesses in North America, were more than offset by a sharper-than-expected slowdown in Mexico, a slow start to the year in Saudi Arabia and offshore Africa, and steep decline in Russia.”

Core Business Shows Bright Spots Amid Slowdown

While overall revenue in SLB’s core divisions slipped 4%, some segments performed well.

• Production Systems revenue rose 4% with growing demand for surface production systems, completions, and artificial lift.
• Margins improved by nearly 2 percentage points.
• Reservoir Performance benefited from strong international stimulation and intervention work, though lower evaluation activity held it back.

CEO Olivier Le Peuch noted that despite lower rig activity, SLB’s diverse portfolio helped soften the blow.

Digital and AI Business Keeps Gaining Momentum

SLB’s digital division continued to grow strongly, separate from the usual ups and downs of the oil and gas cycle.

• Digital revenue jumped 17% year on year.
• Overall, Digital & Integration revenue rose 6%.

Le Peuch said more energy companies are investing in digital tools and AI to boost performance and unlock value from their data. SLB plans to keep expanding its offerings in AI, cloud, and digital operations.

Shareholder Returns Set to Rise in 2025

Looking ahead, SLB promised to return at least $4 billion to shareholders in 2025 through dividends and buybacks.

• The company plans to give back more than half of its free cash flow.

Even with market uncertainties, such as shifting economic conditions and oil price changes, SLB remains focused on protecting margins, maintaining strong cash flow, and delivering steady value.

SLB’s Clear Climate Goals with Measurable Progress

SLB is firmly committed to achieving net-zero emissions by 2050 and has laid out clear targets to guide its journey. The company aims to cut its Scope 1 and 2 emissions by 30% by 2025 and by 50% by 2030. It also targets a 30% reduction in Scope 3 emissions by the end of the decade.

Progress Highlights in 2024:

• Scope 1 and 2 market-based emissions intensity dropped by 11%. They stood at 990 thousand metric tons and 373 thousand metric tons, respectively.
• Scope 3 emissions intensity reduced by 18%. They were 34,855 thousand metric tons.
• 38% of the electricity used at SLB’s global sites came from renewable sources

Cleaner Operations, Smarter Tools

In 2024, SLB cut Scope 1 emissions by rolling out its Field Fuel Playbook. This guide helped teams monitor fuel use, cut idling, and choose cleaner fuels. Employees used it to improve planning and reduce waste across operations.

For example, PumpIRIS™ was rolled out to cut pump idling in field jobs. The pilot avoided over 3,000 metric tons of CO₂e and saved nearly $1 million annually.

The company also helped clients avoid more than 950,000 metric tons of CO₂e in 2024. Its new Digital Sustainability tools support climate action in industries that are hard to decarbonize

Building the Future with Clean Tech

The company’s New Energy business moved forward in 2024, focusing on key technologies that support the energy transition:

• SLB Capturi, a joint venture with Aker Carbon Capture, launched to scale up carbon capture using modular systems. Three projects are underway, and two sites near Norway’s Northern Lights carbon storage hub are already using SLB services.
• In Nevada, a lithium demo plant showed how to make battery-grade lithium carbonate with 96% recovery from brine, using 90% less land and far less water. The plant combines direct lithium extraction with advanced processing, and it’s now ready to scale up.
• New modeling tools were launched to help clients manage lithium-brine resources more efficiently and sustainably.

Boosting Geothermal in the Philippines

Using CoilTools™, SLB revived five geothermal wells in Leyte without drilling. This added 14 MW of power and supports the Philippines’ 2030 target of 3,200 MW.

These goals reflect SLB’s long-term strategy to lower its carbon footprint and support the global transition to clean energy.

We can see that scope 3 emissions are a major concern for the oilfield service companies, and their sustainability approach is significantly strong. Even though their revenues are moderately down, we expect the top oilfield giants like Baker Hughes, Halliburton, and Schlumberger to drive a sustainable change in this sector.

• MUST READ: Big Oil’s Showdown: How Shell, Chevron & ExxonMobil Balance Big Profits with Net Zero?

The post Oilfield Giants Walk a Tightrope: Q1 Profits, Emissions & the Race to Net Zero appeared first on Carbon Credits.

On April 29, 2025, Mark Carney led Canada’s Liberal Party to a narrow electoral victory, securing a fourth consecutive term for the party. Carney, a former central banker and UN Special Envoy for Climate Action and Finance, now leads Canada’s climate policy. 

Carney is now tasked with an urgent balancing act: easing economic pressures while advancing ambitious climate goals — at a time when both inflation and demand for climate action are rising.

Reforming Carbon Pricing: From Consumer Tax to Industrial Focus

One of Carney’s first actions as Prime Minister was to scrap the consumer carbon tax. This tax, introduced in 2019, grew unpopular as living costs rose. The tax, which was set to reach $170 per tonne by 2030, was repealed in an effort to alleviate financial burdens on households.

After its removal, gasoline prices in Canada fell sharply. Average gasoline prices dropped by 8–12 cents per liter nationwide. Some provinces saw drops of more than 10 cents per liter. Many Canadians welcomed this immediate relief. This was especially true in areas where energy costs make up a large part of household expenses.

• READ MORE: Carney Scraps Carbon Tax—Can Canada Reduce Emissions Without It?

Carney suggests replacing the consumer tax. He wants to encourage greener choices for consumers and improve carbon pricing for industries. This plan maintains output-based pricing for big polluters. It also adds subsidies for electric vehicles and home upgrades.

The output-based pricing system (OBPS) aims to hold high-emission industries accountable. It also gives flexibility to sectors that face international competition or are trade-exposed.

It uses the same carbon price as the old consumer tax — $65 per tonne of CO₂ now, rising to $170 per tonne by 2030. Instead of charging companies for every tonne of emissions, the government sets performance targets based on how much pollution is normal for their industry.

If a company pollutes more than its target, it must buy carbon credits or pay the carbon price. If it pollutes less, it earns credits that it can sell. This system lets industries avoid paying the full carbon price on all their emissions, but still pushes them to be more efficient.

The government is targeting industrial emitters. This plan focuses on the biggest sources of greenhouse gases. It also reduces the financial burden on everyday Canadians.

Carney’s plan also includes robust support for green technology adoption. Subsidies for electric vehicles help speed up the shift to cleaner transport. Incentives for home retrofits promote energy efficiency and reduce emissions in homes. These efforts include public awareness campaigns. They aim to help Canadians make smart choices about energy use and their carbon footprint.

Carney’s shift to industrial carbon pricing is complemented by a new international trade tool — the Carbon Border Adjustment Mechanism (CBAM).

Introducing the Carbon Border Adjustment Mechanism 

Carney wants to tackle carbon leakage and stay competitive, and thus, he plans to implement the CBAM. This policy would set tariffs on imports from countries with weaker carbon rules. Thus, it encourages global emission cuts and helps protect local industries.

The CBAM helps Canadian manufacturers compete better. Without it, they may have higher costs from local climate policies than their international rivals.

The introduction of the CBAM marks a significant shift in Canada’s approach to climate policy. Carney’s government wants to align trade policy with climate goals. This way, it can encourage other countries to improve their carbon rules. This approach shows global trends. The European Union and other regions are moving toward similar systems.

However, implementing the CBAM needs careful coordination with trading partners. It must also follow World Trade Organization rules to prevent disputes.

Balancing Energy Development and Environmental Goals

Carney envisions Canada as a leader in both clean and conventional energy sectors. His administration wants to create a national energy corridor to help share energy resources across the country. It will also cut dependence on the United States and boost energy security.

The new corridor will help move electricity, oil, and natural gas more efficiently. This way, provinces can share resources and take advantage of their strengths in energy production.

While promoting clean energy investments, Carney also acknowledges the role of traditional energy sources in Canada’s economy. Oil and gas are key to GDP and jobs, especially in Alberta and Saskatchewan.

Carney stresses the need to work together with provinces, territories, and Indigenous communities. This teamwork is key for energy projects that support both environmental and economic goals. This involves helping to build renewable energy systems like wind and solar. It also ensures that current industries can shift to lower-carbon operations.

• RELATED: National Bank of Canada Targets $20 Billion in Renewable Energy Lending by 2030

The government’s approach is practical. It knows that quickly moving away from fossil fuels might hurt the economy. Instead, Carney advocates for a gradual transition, supported by investment in innovation and skills development to prepare workers for the jobs of the future. 

The Global Stage Awaits — Can Canada Deliver?

Although Canada accounts for roughly 1.5% of global emissions, its advanced economy and resource wealth position it as a key player in shaping international climate policy.

Carney has extensive experience in global finance and climate advocacy. This enables him to play a significant role in international climate discussions. As a former Governor of the Bank of England and the Bank of Canada, he brings credibility and expertise to the global stage.

Canada will play a bigger role in groups like the UNFCCC and the G7. It will push for teamwork on carbon pricing, sustainable finance, and climate adaptation.

However, Carney faces challenges at home. He must work with a minority government and tackle regional gaps in support for climate policies. Provinces that depend on fossil fuels might oppose federal plans. This means they need to negotiate carefully and design policies that help everyone meet emission reduction goals.

Canada has promised to cut its greenhouse gas emissions by 40–45% below 2005 levels by 2030 as part of the Paris Agreement. The country also aims to reach net-zero emissions by 2050. 

The Canadian Climate Institute estimated that the carbon tax would have helped lower emissions by 8–9% by 2030. The carbon tax applies to emissions from transportation and buildings. On the other hand, the industrial carbon pricing systems could cut around 20-48% of emissions by 2030, as shown below.

Even though the tax on consumers is gone, government rebates for electric vehicles and home upgrades will still help reduce emissions in these areas. Without the tax, Canada will need new policies to stay on track, and Carney’s administration will be on it. 

Carney’s Climate Balancing Act

Public opinion remains divided. Some Canadians prioritize economic growth and energy affordability; others demand more ambitious climate action.

Prime Minister Mark Carney’s challenge will be to bridge these divides. He needs to show that environmental responsibility and economic prosperity can go hand in hand.

Carney’s climate strategy reflects a pragmatic approach: balancing the need for economic stability with environmental responsibility. Carney wants to shift Canada from consumer-based carbon pricing to industrial regulation and international methods like the CBAM. This change aims to make the country a strong and innovative leader in global climate efforts.

As Canada works to reach its climate goals, the world will be watching. If successful, Carney’s balanced approach could offer a model for nations seeking both economic resilience and climate leadership.

• FURTHER READING: Canada’s $16.5 Billion Bet on Carbon Capture: Could It Cut Oil Sands Emissions?

The post Mark Carney’s Climate Strategy: Balancing Carbon Policy, Trade, and Energy Security appeared first on Carbon Credits.

The global nickel market started 2025 with an oversupply dilemma. According to the International Nickel Study Group (INSG), the market is expected to face a supply surplus of 198,000 metric tons (mt) this year. That’s higher than the surplus of 179,000 mt recorded in 2024 and 170,000 mt in 2023.

INSG also predicted that production of primary nickel is projected to reach 3.735 million mt in 2025, while global usage is forecast at just 3.537 million mt. This imbalance continues to weigh down prices and investor sentiment, especially across Asia.

In China, the share of NMC batteries dropped to 19% of total production in January and February 2025, according to the China Automotive Battery Innovation Alliance. This shift has put downward pressure on nickel sulfate prices, despite expectations of higher consumption in 2025.

• S&P Global highlighted that global nickel demand from batteries was around 384,000 mt Ni in 2024 and is forecast to grow to 543,000 mt Ni in 2025.

Yet, the market remains underutilized due to excess production capacity and preference for alternative battery chemistries. Thus, on the demand side, the market remains sluggish.

        2025 Chinese NMC Production Further Declines to 19%

Oversupply Weighs on Nickel Prices Despite Early-Year Momentum

Nickel prices showed a brief uptick at the start of 2025, but the momentum quickly faded due to ongoing supply pressure and sluggish demand. Prices opened the year at $15,040 per metric ton on January 2, rising to $16,080 mid-month before dipping again.

As per S&P Global,

• The LME 3M closing nickel price dropped to a near-five-year low of $14,084/t on April 9 from $16,107/t on April 1.
• By the end of Q1, prices had settled around $15,545/t.

                        What happened to the nickel price in Q1?

However, on April 15, the U.S. government began a probe into imports of processed critical minerals like nickel under Section 232 of the Trade Expansion Act. The Commerce Secretary must submit a report to the President within 180 days.

Trump earlier used Section 232 to impose 25% tariffs on steel and aluminum. Refined Class 1 nickel was not hit by the April 2 tariffs, but that might change after the new review.

A recent copper probe caused copper stocks to shift to the U.S., pushing up prices on the London Metal Exchange (LME). If the same happens, nickel stocks might drop, and nickel prices could also rise soon.

• MUST READ: Nickel Prices Plunge in 2025: Can Demand Revive the Market by 2030? 

Asia’s Nickel Market Strain in Q1

Indonesia and China are making more value-added nickel products like nickel sulfate and nickel cathodes. These are used in electric vehicles (EVs) and batteries.

Thus, Asia continues to lead global nickel supply growth.

• Indonesia is set to boost its production from 1.6 million metric tons in 2024 to 1.7 million metric tons in 2025, keeping its spot as the world’s top producer.
• China comes next, with output rising from 1.035 million metric tons in 2024 to 1.085 million metric tons in 2025.
• The Philippines shipped 54 million metric tons of nickel ore in 2024, with 43.5 million metric tons going to China.

However, the Indonesian government is delaying permits (RKABs), making the supply of nickel ore significantly tight. Yet, the country still produces a large amount of refined nickel.

Furthermore, Manila is now considering a ban on raw nickel exports. If that happens, China’s nickel supply chain could take a major hit.

• RELATED: Philippines’ Nickel Export Ban and U.S. Tariffs: What’s Happening in the Nickel Market Now? 

Jason Sappor, metals and mining research senior analyst at S&P Global Commodity Insights, has revealed his insights by noting,

“Amid an unstable global macroeconomic backdrop, we expect the global primary nickel market to remain oversupplied in 2025, with production from Indonesia forecast to expand further this year, despite challenges like tight nickel ore availability and a potential royalty rate hike on nickel products by the government.” 

             Feb 2025 China Nickel Ore Imports Down 6.3% y-o-y

Tax Hike and Shrinking Profits

Indonesia recently raised mining royalties from 10% to as high as 19%, based on nickel prices. These new rates aim to fund government programs under President Prabowo Subianto. Still, low-grade nickel used for EV batteries will see a lower 2% royalty.

These tax hikes have pushed production costs higher and caused nickel prices to rise in March. But the future remains uncertain. Miners warn of shrinking profits due to rising expenses and limited ore supply.

Meanwhile, Chinese companies are pulling back. Nickel giant CNGR has paused its South Korea project, showing investors are growing cautious in a volatile nickel market.

Conclusion: Surplus to Persist, Prices Likely to Stay Low

Looking ahead, the nickel market is expected to remain oversupplied throughout 2025. INSG forecasts a 3.8% increase in global nickel production this year, after a 4.6% rise in 2024.

Lastly, as we can see, policy-driven price volatility due to new royalties, trade tariffs, and battery chemistry shifts will continue to keep nickel prices low.

• FURTHER READING: Nickel’s Wild Ride: What’s Driving Prices and Future Demand?

The post Will the Nickel Oversupply Continue to Crush Prices in 2025? appeared first on Carbon Credits.

The Dutch government has committed $726 million (639 million euros) to the Aramis carbon capture and storage (CCS) project, the largest of its kind in the Netherlands. This major investment comes after energy companies Shell and TotalEnergies decided to reduce their financial support for part of the project.

Shell and TotalEnergies had originally planned to help fund the construction of a large pipeline system. This pipeline would connect factories and industrial areas to underground storage sites in the North Sea.

However, both companies have now chosen to focus only on developing the carbon storage sites and offering carbon storage services. They pulled out of investing in the pipeline infrastructure.

Without government help, Aramis’s future was uncertain. In response, the government stepped in to cover the risk and keep the project moving forward. Climate Minister Sophie Hermans said that the decision would help ensure that the country could still meet its climate goals, saying:

“This takes away a large part of the risk in the project.”

How Aramis Will Trap Carbon and Cut Emissions

The Aramis project is designed to capture carbon dioxide (CO₂) from industries and transport it to underground storage locations. These sites are in empty gas fields deep under the North Sea. Once stored, the CO₂ will stay underground permanently, preventing it from entering the atmosphere and contributing to climate change.

Aramis plans to transport up to 22 million tonnes of CO₂ every year. The system will be open-access, meaning many different industrial companies can use it. The goal is for construction to finish by 2030, after a final investment decision in 2026.

The pipeline is a central part of the Netherlands’ plan to reduce its carbon emissions. The country wants to cut emissions by 55% by 2030 compared to 1990 levels. 

Although emissions were 37% lower than 1990 levels as of 2024, government experts warn that current policies are not strong enough to meet the 2030 target. Projects like Aramis are seen as essential to closing that gap.

By capturing and storing carbon from hard-to-decarbonize sectors like cement, chemicals, and steel, Aramis will help industries reduce their impact without shutting down operations.

Shell and TotalEnergies Shift Gears: What It Means

Shell and TotalEnergies’ decision to back away from the pipeline part of Aramis reflects a larger shift happening among European energy companies. In recent years, many companies have set ambitious climate goals and promised large investments in renewable energy. 

However, competition from American oil and gas companies, who stayed focused on fossil fuels, has made it harder for European firms to keep up financially.

Now, some European energy giants are slowing down their clean energy plans to focus again on their core oil and gas businesses. Shell, for example, announced in 2023 that it would focus more on delivering value to shareholders and less on expanding renewable energy investments.

• RELATED: Shell and Microsoft Are The Biggest Carbon Credit Buyers in 2024: What Projects Do They Support?

Despite reducing their funding, Shell and TotalEnergies are still involved in Aramis. They will work with Gasunie and Energie Beheer Nederland (EBN) to develop two offshore CO₂ storage sites. They also plan to offer carbon storage and transport services once the system is built.

With Shell and TotalEnergies pulling back on pipeline investment, state-owned EBN and gas grid operator Gasunie will take greater control of the Aramis infrastructure. They will jointly own and operate the pipeline system as a 50:50 partnership.

Building a Carbon Capture Superhighway

Aramis is not the only CCS project underway in the Netherlands. Several other infrastructure projects are linked to it, helping to build a broader carbon capture network.

One of these projects is CO₂next, a new terminal being built by Gasunie, Vopak, Shell, and TotalEnergies. Located in Rotterdam’s Maasvlakte area, the terminal will allow ships to bring in or ship out liquid CO₂. The CO₂next terminal will connect to the Aramis pipeline system, making it easier for industries not directly connected to the pipeline to use CCS services.

Another related project is the planned expansion of the Porthos compression station. This station will help compress CO₂ so that it can be safely pushed into storage sites under the sea.

In addition to these projects, the Dutch government announced a new €8 billion ($8.6 billion) package to support renewable energy, electric vehicles, and other sustainable technologies. Industries will also receive compensation to help deal with high energy prices, which can make the transition to cleaner energy harder.

Why CCS Matters More Than Ever

Carbon capture and storage is becoming an important tool in the global fight against climate change. Some industries, like cement and steel, are very hard to decarbonize.

Even with new technologies, they are likely to continue producing some emissions for years to come. CCS offers a way to deal with these emissions by capturing them before they enter the atmosphere.

According to the International Energy Agency (IEA), reaching net-zero emissions by 2050 will require capturing more than 7.6 billion tonnes of CO₂ globally each year. Right now, global CCS capacity is much smaller — only about 50 million tonnes per year — so major expansion is needed.

As of 2024, the following is the global CCS project trend per McKenzie’s data.

Several European countries are investing heavily in CCS. Norway’s Longship project and the United Kingdom’s East Coast Cluster are examples of large CCS hubs being developed. The Netherlands hopes that by investing early, it can become a leader in carbon capture services for Europe.

• READ MORE: Shell, Equinor, and TotalEnergies Expand Northern Lights CCS with $714 Million Investment

By supporting Aramis, the Dutch government is not just working toward national climate goals. It is also protecting its industrial economy and creating new business opportunities for the future.

If it succeeds, the Aramis project could guide other countries. They can learn how to balance economic growth with climate action. It also boosts Europe’s efforts to use CCS technology. 

As the energy transition continues, partnerships between governments and businesses will be crucial. The Netherlands’ bold move to back the Aramis CCS project shows a clear commitment to finding practical solutions to the climate crisis — even as market dynamics shift and corporate strategies evolve.

• SEE MORE: What’s New in Verra’s Latest CCS Methodology Update? Find Out!

The post Netherlands Invests $726 Million in Aramis CCS as Shell and Total Shift Strategies appeared first on Carbon Credits.