Rotterdam bio-ethanol plant secures €50 million government boost to slash CO₂ emissions by 75%
Alco Energy Rotterdam will cut CO₂ emissions by up to 75% by 2030, saving enough natural gas to power 75,000 homes. The government’s €50 million support aims to make Dutch industry greener while keeping it competitive.
| Key Data | Details |
|---|---|
| CO₂ Reduction Target | 65–75% (224–263 kilotonnes annually) by 2030 vs. 2021 |
| Natural Gas Savings | 100 million m³ per year (equivalent to 75,000 households) |
| Government Funding | Up to €50 million from the climate fund |
| Company Investment | €150–200 million for electrification and efficiency upgrades |
| Additional Benefits | 17 tonnes less nitrogen/year, 200,000 m³ less water/year, grid stabilization |
| Production Capacity | 700 million litres of ethanol annually (10% of EU fuel sector demand) |
| Location | Rotterdam, South Holland |
The Dutch cabinet plays a key role in accelerating industrial sustainability by funding and facilitating green transitions. Through tailored agreements, it balances environmental goals with economic competitiveness, ensuring industries like Alco Energy Rotterdam can innovate while maintaining strategic independence.
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Cabinet and Alco Energy Rotterdam sign letter of intent for greening production site in Rotterdam
The cabinet signed a Joint Letter of Intent (JLoI) with Alco Energy Rotterdam (AER) and the province of South Holland on 11 March. For all parties involved, this declaration represents an important final step toward reaching binding tailor-made agreements on investments, reducing CO₂ emissions and minimising the impact on the living environment.
The letter of intent stipulates that by 2030, AER will reduce its CO₂ emissions by 65–75% compared to 2021. This translates to an annual reduction of approximately 224 to 263 kilotonnes of CO₂ through key adjustments to the production process.
- The projects aim to further improve energy efficiency and prepare the production facility for partial electrification. The first step in this direction has already been taken by operating the production process at a lower temperature.
- In addition, the existing natural gas boiler will be partially replaced by deploying an electric boiler (45 MW).
- Finally, applying the heat pump principle in the distillation process will further reduce the use of fossil energy.
These energy-saving and electrification measures will reduce annual natural gas consumption by around 100 million m³, equivalent to the gas usage of approximately 75,000 households. AER will also contribute to stabilising the electricity grid, reduce nitrogen emissions by at least 17 tonnes per year and cut water consumption by about 200,000 m³ annually.
CO₂ reduction and an attractive business climate
Greening is essential for Dutch industry to remain future-proof and competitive within Europe. The cabinet is therefore continuing to focus on both CO₂ reduction and an attractive business climate. To support AER’s ambitious plans, the government is making a maximum of €50 million available from the climate fund. This support is intended to bridge the financial gap in the business case. AER itself expects to invest between €150 and 200 million to implement the projects.
Alco Energy Rotterdam (a joint venture of Alcogroup and Vanden Avenne Commodities) is one of the companies with which the cabinet wants to make agreements through the tailor-made approach, as it can make a significant contribution to greening industry. The company operates Europe’s largest bio-ethanol plant and produces 700 million litres of ethanol annually, which is used in E10 fuel. AER supplies about 10% of Europe’s (EU) demand for ethanol for the fuel sector, thereby also contributing to strategic independence. In the Netherlands, AER is the largest producer of biogenic CO₂ and an important producer of protein-rich animal feed. In addition, Alcogroup also supplies ethanol to the chemicals, pharmaceuticals, cosmetics and beverage industries.