In a recent interview with Het Financieele Dagblad, Frank Erkelens, Group CEO of LBC Tank Terminals, shares his views on the rise of new energy carriers such as ammonia and liquid CO₂, the growing demand for storage infrastructure, and the regulatory challenges shaping Europe’s energy transition.
The original Dutch article can be accessed via the link on page 14.
Nieuwe energiedragers zoeken een thuis dat nog nauwelijks bestaat
English translation below
The energy transition is progressing more slowly than initially anticipated. Nevertheless, demand for storing ammonia, liquid CO₂, and other emerging energy carriers continues to grow steadily. The challenge is that the necessary infrastructure for this transition is still largely absent. As the world waits for clearer regulations and policies, the tank terminal industry faces decisions that can no longer be postponed.
In recent years, Europe has shifted from being a net exporter to a net importer of chemicals. High energy and feedstock costs have reduced the competitiveness of the European chemical industry, driving production out of the region and increasing imports from the United States, the Middle East, and Asia. For companies specializing in liquid chemical storage, this shift is creating significant growth opportunities.
LBC Tank Terminals, a global operator of liquid bulk terminals, is benefiting from this trend. “We have been able to add substantial capacity over the past few years,” says Frank Erkelens, Group CEO of LBC. “Europe’s current economic situation means more products need to be imported, which has increased demand for tank storage.”
A different starting point
Unlike traditional terminals, which face declining volumes as electrification reduces fossil fuel demand, LBC occupies a unique position. Its focus on chemical storage shields it from the direct effects of the energy transition and enables it to respond proactively. Emerging products such as ammonia, liquid CO₂, and pyrolysis oil align well with LBC’s existing expertise.
Among these, ammonia stands out as the most promising energy carrier. By transporting green hydrogen over long distances, it could play a crucial role in global energy logistics. However, the necessary infrastructure is still largely missing.
“The energy density of ammonia is much lower than traditional fossil fuels,” explains Erkelens. “This means significantly more space and infrastructure are required.” LBC is currently developing an ammonia and CO₂ terminal in Vlissingen, marking a first step toward broader international expansion.
Regulation slowing investment
While the willingness to invest is strong, concrete investment decisions remain limited. One key reason is the interdependence of all links in the value chain.
Investments in ammonia infrastructure run into the billions and will only proceed once associated risks are fully mitigated through long-term contracts. Those contracts, in turn, will only materialize when policy clarity is sufficient. The permitting process for the Vlissingen terminal has already been ongoing for three and a half years. “Who has the stamina to wait that long?” asks Erkelens. “It requires real perseverance.”
CO₂ neutrality is a responsibility
“Achieving CO₂ neutrality is not optional; it is simply a responsibility.”
While the Trump administration slowed the energy transition in the United States, Europe faces pressure to move forward decisively amid high energy costs and declining industrial competitiveness.
“We must ensure a level playing field in Europe,” says Erkelens. Public-private cooperation is essential. Governments need to invest in common infrastructure—from electricity grids to CO₂ and hydrogen networks—while permitting procedures must become faster and more predictable.
Sustainability as a strategic priority
LBC aims to become CO₂-neutral by 2040, well ahead of many competitors. Despite external challenges, the company’s direction remains clear. All terminals now operate on green electricity.
LBC voluntarily reports in line with CSRD standards and benchmarks its sustainability performance annually through EcoVadis. The company has achieved platinum status—the top 1%—for three consecutive years among over 150,000 participating companies.
“This is not a choice,” Erkelens emphasizes. “It is a responsibility.” This stance also offers tangible business benefits: customers increasingly expect high sustainability performance from their terminal partners, and it helps attract talent in a sector not always seen as appealing.
Strongly positioned within the MOL Group
Since June 2025, LBC has been part of the MOL Group (Mitsui O.S.K. Lines), one of the world’s largest shipping companies and a leader in LNG and chemical transportation. This partnership strengthens LBC’s role in emerging energy value chains.
MOL is investing heavily in ammonia as both a fuel for its vessels and an energy carrier. Together, LBC and MOL cover both terminal and shipping aspects of the value chain, supporting projects in green hydrogen production and ammonia distribution.
Looking ahead
“Within two years, construction will begin at multiple locations,” says Erkelens. “By then, I hope we will be discussing a Europe that has made clear choices to maintain industrial competitiveness while advancing sustainability.”