Flemish Government supports 9 industrial transition projects for a more sustainable Flanders

What is the Climate Leap Transition Contract?

The 2024 pilot call Climate Leap Transition Contracts serves as a test for a new type of support mechanism designed to facilitate the industrial climate transition. It is aimed at companies with annual direct emissions of at least 10,000 tonnes of CO₂. The system works according to the principle of “contracts for difference” (CfDs), in which support is granted over multiple years and adjusted annually in line with changes in energy prices and emission allowances. This ensures that government support is used flexibly, in line with market conditions, while investment risk is shared with companies.

A unique feature of this instrument is that it can cover operational costs, offers partial risk coverage and allows the cash flow to return to the government once the investment is sufficiently profitable. Furthermore, projects are selected through an auction process, with priority given to those requesting the lowest support per tonne of CO₂ avoided.

Electric boilers and heat pumps boost industrial transition

In order to achieve a climate-neutral industry by 2050, companies must invest in new technologies that drastically reduce emissions. Electric boilers and heat pumps are a crucial step in this process: they replace natural gas-fired installations with CO₂-free heat production. 

Still, the investment costs and the uncertainty about future energy prices remain a barrier for many companies. Thanks to the transition contract, businesses can now take that step.

Nine projects to reduce CO₂ emissions by 82,000 tonnes annually

The nine selected projects come from a wide range of industrial sectors – from chemicals and food to pharmaceuticals and energy – and will together prevent more than 82,000 tonnes of CO₂ emissions per year. Specifically, the projects are: 

1. Chevron Phillips Chemicals International (Tessenderlo): is investing in an electric boiler for steam production, cutting 2,239 tonnes of CO₂/year.
2. Raffinerie Tirlemontoise (Tienen): is focusing on heat pumps with mechanical vapour recompression (MVR) to reuse residual heat in the crystallisation process, cutting 21,600 tonnes of CO₂/year.
3. Kaneka Belgium (Westerlo): is installing a hybrid steam system with electric boiler in polymer production, cutting 1,679 tonnes of CO₂/year.
4. FrieslandCampina Belgium (Aalter): is investing in an e-boiler for sterilisation and pasteurisation processes, cutting 8,397 tonnes of CO₂/year.
5. Inbev Belgium (Leuven): is switching to sustainable steam production via an e-boiler, cutting 4,478 tonnes of CO₂/year.
6. INEOS (Zwijndrecht): is electrifying heat production, cutting 11,196 tonnes of CO₂/year.
7. TotalEnergies Refinery Antwerp: is installing a large-scale e-boiler, cutting 26,660 tonnes of CO₂/year – the largest saving within this call.
8. Pfizer Manufacturing Belgium (Puurs) - project 1: is installing a heat pump for process heat in the production facility.
9. Pfizer Manufacturing Belgium (Puurs) - project 2: is implementing Mechanical Vapor Recompression (MVR) technology for energy recovery. Together, the two Pfizer projects will reduce emissions by 5,715 tonnes of CO₂/year. 

In total, these nine projects represent a maximum theoretical support of 70 million euros and mark an important step towards a sustainable Flemish industry. 

A look ahead 

The 2024 pilot call Climate Leap Transition Contracts was part of the broader Climate Leap for Industry programme, through which Flanders aims to accelerate the transition to a climate-neutral industry by 2050. 

The outcomes of this pilot call will be evaluated in 2025. Based on these results and a comparative study of similar mechanisms in Europe, the Flemish Government will determine future financing instruments to support CO₂ reduction in Flanders.

The original article (in Dutch) can be found here.