Dutch tanks and infrastructure business Royal Vopak is spending €1bn more on gas and industrial infrastructure to accelerate the energy transition, taking its overall investment to €2bn. The investment was confirmed at its Capital Markets Day.
It will focus on infrastructure solutions for low-carbon fuels and sustainable feedstocks, ammonia as a hydrogen carrier, liquid CO2, and battery energy storage.
CEO Dick Richelle said an increased operating cash return target of above 13% and a new commitment to capital spending makes it well-positioned to capture additional growth opportunities.
The majority of existing investments by the company have been in gas infrastructure to address energy security and affordability needs, and a substantial portion has been committed to growth markets such as India and China.
The company, which recorded 2024 net profit of €376m, said it would continue to have “a disciplined and selective approach” with investments, adopting a similar risk return profile as the current business.
Part of Vopak’s ambition is to repurpose a portion of the existing oil capacity in hub locations for low carbon fuels and feedstocks.
Last month, Zululand Energy Terminal, a joint venture between Vopak Terminal Durban and Transnet Pipelines, signed a Terminal Operator Agreement with Transnet National Ports Authority to design, develop, construct, finance, operate and maintain the LNG terminal at the Port of Richards Bay for 25 years. A final investment decision (FID) is expected by 2026.
The two-phase LNG terminal is a pivotal development in South Africa’s efforts to ensure energy security as the country faces a looming gap in gas supply with the gradual decommissioning of coal-fired power stations.
Last year it progressed the expansion of gas infrastructure in Canada, India, the Netherlands, China, and Saudi Arabia, along with sustainable feedstocks by repurposing capacity in Singapore, Brazil and the Netherlands, where it committed €15m to develop infrastructure for waste-based feedstocks at Vlaardingen terminal.
A market consultation for storing ammonia at Vopak Energy Park Antwerp site was launched last October. Subject to market interest and FID, the start of operations is scheduled for 2029.
