The Port of Rotterdam has raised €50 million through the issuance of a new Carbon Capture and Storage Bond, marking the first ever corporate bond with use of proceeds to be exclusively allocated to carbon capture and storage (CCS).
Proceeds raised through the new bond offering will be allocated to Port of Rotterdam’s equity investment in Porthos, one of the world’s largest carbon capture and storage projects. Porthos will transport CO2 that is captured by companies in Rotterdam such as hydrogen producers and refineries, and store it in depleted gas fields under the North Sea. The project aims to transport and store approximately 2.5 million tonnes of CO2 annually for 15 years, collected from companies including Shell, ExxonMobil, Air Liquide, and Air Products. Construction on project infrastructure began in 2024, with Porthos expected to be operational in 2026.
Japan’s Dai-ichi Life Insurance Company was the largest participant in the new CCS bond offering, investing €26 million. The company said that its investment aligned with its “Environmental Leadership” theme, supporting the Port of Rotterdam Authority’s decarbonization efforts, in addition to providing expected stable investment returns. The company added that it collaborated closely with the Port of Rotterdam Authority and HSBC Securities to structure the transaction.
Port of Rotterdam Authority CFO Vivienne de Leeuw said:
“Many of our investments directly reduce CO₂ emissions, such as the construction of the CO₂ pipeline infrastructure for the Porthos CO₂-transport and storage project. Our collaboration with Dai-ichi Life enables us to realise these kind of decarbonisation projects and build a future-proof port.”
Photo source: Port of Rotterdam, Kees Torn (photographer).
