- First corporate bond globally with proceeds dedicated exclusively to carbon capture and storage, setting a new template for transition finance.
- Funds back the Porthos CCS project, designed to store around 2.5 million tonnes of CO2 annually for 15 years from Europe’s largest industrial port cluster.
- Japanese insurer Dai-ichi Life emerges as anchor investor, highlighting growing cross-border institutional appetite for CCS infrastructure.
Europe’s largest port has opened a new chapter in climate finance by issuing the world’s first corporate bond dedicated solely to carbon capture and storage, raising €50 million ($55 million) to fund one of the continent’s most strategically important decarbonization projects.
The Port of Rotterdam Authority said proceeds from the bond will be allocated entirely to its equity investment in Porthos, a large-scale CCS system designed to serve the industrial heart of the Rotterdam region. Once operational, Porthos will collect carbon dioxide from hydrogen producers, refineries and chemical plants and transport it via pipeline for permanent storage in depleted gas fields beneath the North Sea.
Construction of the project’s core infrastructure began in 2024, with operations expected to start in 2026. At full capacity, Porthos aims to transport and store around 2.5 million tonnes of CO2 per year for at least 15 years. Initial participants include Shell, ExxonMobil, Air Liquide and Air Products, anchoring the project firmly in the hard-to-abate segments of Europe’s industrial economy.
A targeted financing structure for CCS
What distinguishes the transaction from previous green or sustainability-linked bonds is its narrow focus. According to the parties involved, this is the first time a corporate issuer has structured a bond where proceeds are ringfenced exclusively for carbon capture and storage activities, rather than broader environmental categories.
HSBC acted as Sustainability Structurer and Joint Placement Agent, working with the port authority and investors to design a use-of-proceeds framework tailored specifically to CCS infrastructure. The structure reflects growing investor demand for more targeted transition instruments, particularly for capital-intensive technologies that struggle to compete for funding under conventional green finance labels.
The port authority views the bond as a way to align long-term infrastructure investment with the climate transition of its industrial tenants, while maintaining access to stable institutional capital.
“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 decarbonization projects and build a future-proof port,” said Vivienne de Leeuw, Chief Financial Officer of the Port of Rotterdam Authority.
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Dai-ichi Life anchors the deal
Japan’s Dai-ichi Life Insurance Company was the largest investor in the issuance, committing €26 million, roughly $29 million, equivalent to about ¥4.7 billion. The insurer said the investment aligns with its Environmental Leadership theme, combining support for industrial decarbonization with the prospect of stable, long-term returns.
Dai-ichi Life also highlighted its close collaboration with the Port of Rotterdam Authority and HSBC in structuring the bond, signalling a more active role for institutional investors in shaping climate-finance products rather than simply allocating capital after the fact.
The deal reflects a broader shift among global insurers and pension funds toward infrastructure assets linked to net-zero pathways, particularly where public policy and long-term demand signals are clear.
Rotterdam as a CCS hub
European policymakers increasingly see CCS as unavoidable for meeting climate targets in sectors such as refining, chemicals, steel and hydrogen. The European Union has set a goal of storing at least 50 million tonnes of CO2 annually by 2030, a scale that will require multiple regional hubs linked to shared transport and storage networks.
Rotterdam is positioning itself as one of those hubs. By leveraging its existing energy and industrial infrastructure, the port aims to offer CCS as a service to companies that cannot fully electrify or eliminate process emissions in the near term.
Porthos is designed with expansion in mind, allowing additional emitters to connect as demand for storage grows and as regulatory pressure on industrial emissions tightens across Europe.
Global capital, global implications
The participation of a Japanese insurer also points to the international dimension of CCS financing. Japan has limited domestic geological storage capacity, prompting companies and investors to explore overseas projects, shipping-based CO2 transport and regional storage partnerships.
Institutional capital is increasingly viewed as critical to scaling CCS globally, given the long asset lives, high upfront costs and policy-dependent revenue models involved. The Port of Rotterdam bond suggests that narrowly defined, transparent financing structures may help unlock that capital.
As governments push harder on industrial decarbonization and storage targets rise, the transaction offers a potential blueprint for how ports, utilities and infrastructure owners can fund CCS without diluting investor confidence or stretching existing green-bond frameworks.
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