“Als LBC Tank Terminals positioneren wij ons op een dusdanige wijze dat we klaar zijn om infrastructuur te leveren voor producten die gelieerd zijn aan de energietransitie. Wij geloven sterk in onze verantwoordelijkheid als speler in deze industrie en willen een leidende rol spelen. We willen bijdragen aan een betere toekomst voor deze wereld en de generaties die na ons komen.” Het volledige interview met onze CEO Frank Erkelens is te lezen in de 'Sustainable Industry' special van Het Financieele Dagblad.
English translation below
Storage terminals can lead the way in the energy transition
For sustainable operations of tank storage companies, energy efficiency and an environmental-friendly policy are essential. The terminals—located in and around ports—play a crucial role in the logistics chain of sustainable products driving the energy transition, both now and in the future.
The energy transition impacts the operations of every company, regardless of size or sector. However, in the world of storage terminals and chemical products, this impact is significant, both for the company itself and for society. Billions of cubic meters of liquid bulk products are stored, traded, and distributed globally at terminals: it is an essential chain that keeps the world economy running.
Crucial locations
LBC Tank Terminals, headquartered in Rotterdam with over 500 employees worldwide, knows all about this. The company plays a crucial role in the storage and transport of chemical products, base oils, and products related to the energy transition, all with a focus on sustainability and safety. The company has seven terminals worldwide, with a total storage capacity of 2.9 million cubic meters. Three of these terminals are located in Antwerp and Rotterdam, while four are situated in the United States along the Gulf of Mexico, including Houston and Baton Rouge—all in crucial locations. These strategic locations play a significant role in sustainability efforts.
“All our terminals are full and are exactly where the energy transition can have the greatest impact. We strongly believe in our responsibility as a player in this industry and want to take a leading role,” says Frank Erkelens, CEO of LBC Tank Terminals. Erkelens has been working in the world of storage and distribution for decades. “We want to contribute to a better future for this world and for the generations that follow us.”
Future-proof
“We position ourselves in such a way that we are ready to provide infrastructure for products related to the energy transition,” says Erkelens. LBC is fully committed to the energy transition and plans to invest hundreds of millions of euros in the coming years to adapt terminals for the new products expected to arise from this transition. Think, for example, of the storage of 'plastics-to-liquids', for which LBC Tank Terminals is already the hub in Rotterdam. Or think of ammonia, which requires very specific handling for safe storage or transport, or hydrogen, which is still developing slowly, or liquid CO2. All these products and future innovations require special infrastructure.
Erkelens expects the company to triple in size over the next few years. With this expansion, innovation is high on LBC Tank Terminals' priority list. For instance, boiler and vapor handling systems at the terminals have been replaced worldwide with systems that can also run on hydrogen, making them much more energy efficient. “We position ourselves in such a way that we are ready for the product flows that arise from the energy transition.” In addition, the company works closely with partners worldwide who also consider sustainability crucial. “We are a relatively small player, but that allows us to respond quickly to changes and innovations,” says Erkelens.
Climate goals
The company aims to reduce its own CO2 footprint to net-zero to actively contribute to the climate goals outlined in the Paris Agreement. LBC has opted for 100% wind energy at all terminals, which in Rotterdam, for example, results in a reduction of CO2 emissions by 4,200 tons per year. The company aims to be CO2-neutral for scope 1 and scope 2 emissions by 2030, and for scope 3 by 2040. Best practice engineering is standard at LBC and is used to improve operational efficiency and limit the impact of VOC emissions (volatile organic compounds). Furthermore, ongoing internal training helps employees expand their knowledge and skills regarding sustainability. Regarding regulation, LBC Tank Terminals hopes for clarity and consistency. The regulations differing by region are not conducive to a smooth and rapid energy transition. Governments can play an important role in promoting the energy transition through supportive legislation and by developing and providing infrastructure. The energy transition is irreversible but can be accelerated through good collaboration between governments and businesses, says Erkelens.
“Sustainable energy must be imported into Europe via energy carriers like ammonia, as Europe cannot meet its own sustainable energy needs in a cost-effective way. This requires much new infrastructure, and LBC Tank Terminals wants to provide part of that,” says Erkelens. “Employees are proud of our company because of the emphasis on sustainability. Ultimately, we aim for emission-free terminals. We want to be ready for the future and the moment when that infrastructure for new products is needed. It may be more costly now, but our customers are willing to support this. Like us, they believe in the necessity of the energy transition and the need for future-proof infrastructure for the storage and handling of products that contribute to a better future.”