Yara has officially inaugurated a carbon capture and storage (CCS) facility at its Sluiskil ammonia and fertiliser plant in the Netherlands, creating what the company describes as Europe’s largest industrial carbon-capture operation.
The project will capture and liquefy up to 800,000 tonnes of CO₂ annually from ammonia production before shipping the gas to Norway, where it will be permanently stored 2,600 metres beneath the seabed through the Northern Lights CCS network.
CCS milestone for European fertiliser production
Yara expects the project to capture and store around 12 million tonnes of CO₂ over the next 15 years, significantly reducing the carbon footprint of fertiliser and ammonia produced at the site.
“This is an important day for Yara and for European industry,” said Svein Tore Holsether, president and CEO of Yara International.
“The carbon capture facility in Sluiskil proves that large-scale industrial decarbonization is possible today.”
From emissions reduction to market value
The launch marks a significant step forward for decarbonising one of agriculture’s most emissions-intensive supply chains. Ammonia production relies heavily on natural gas and is responsible for substantial CO₂ emissions globally.
By capturing emissions before they enter the atmosphere, Yara can lower the carbon intensity of its fertiliser products while avoiding carbon costs associated with those emissions.
However, the commercial success of the project may depend less on engineering and more on customer demand.
The key question now is whether farmers, food companies and fertiliser distributors will recognise and reward the lower-carbon footprint of CCS-enabled fertiliser products.
Price-sensitive markets present a challenge
The issue is likely to be particularly acute in major importing markets such as Brazil, which imports roughly 85% of its fertiliser requirements and has traditionally prioritised product availability and price over environmental credentials.
While food manufacturers and retailers are increasingly setting Scope 3 emissions targets, many growers remain focused on managing tight margins and volatile input costs.
For Yara, success will depend on whether carbon reductions can be translated into measurable value across the food supply chain, rather than remaining an environmental benefit that is difficult to monetise.
Building low-carbon value chains
The company argues that CCS will support a new generation of lower-carbon products across agriculture, industry and shipping.
Potential applications include lower-carbon fertilisers, low-carbon ammonia for industrial uses and clean-energy applications, and lower-carbon maritime fuels.
European policymakers view projects such as Sluiskil as strategically important for maintaining industrial production while meeting climate goals.
“Europe needs practical climate solutions that deliver real emissions reductions while strengthening industrial competitiveness,” said Wopke Hoekstra, European Commissioner for Climate, Net Zero and Clean Growth.
A test case for fertiliser decarbonisation
The project also represents the first complete cross-border CCS value chain linking industrial CO₂ capture in the Netherlands with permanent geological storage in Norway.
Captured CO₂ will be liquefied and temporarily stored at Sluiskil before being transported by ship to the Northern Lights storage facility in Øygarden, Norway.
For the fertiliser industry, the development demonstrates that large-scale emissions reductions from conventional ammonia production are technically achievable today.
Whether they become commercially attractive is another matter.
