The European Commission Allocates €120 Million CEF Grant for Prinos Carbon Storage Project in Greece

The European Commission has earmarked a €120 million Connecting Europe Facility (CEF) grant to support the development of a liquefied CO2 receiving terminal at Prinos Carbon Storage in northern Greece. This funding is part of a larger allocation of almost €1.25 billion from CEF for 41 cross-border energy infrastructure projects aimed at enhancing Europe’s competitiveness and decarbonizing the energy system.

The Prinos Carbon Storage project, developed by EnEarth, a subsidiary of UK-based oil and gas company Energean, aims to store up to 3 million tonnes of CO2 annually by leveraging existing infrastructure. With the CEF grant and a previously announced €150 million Greek Recovery and Resilience Facility (RRF) fund, EnEarth plans to commence project development and market tests, pending the necessary CO2 storage license.

Once operational, the project is expected to have the capacity to abate approximately 25% of Greek industrial emissions, making it a significant contributor to decarbonization efforts not only in Greece but across the EU. Recognized as a ‘Project of Common Interest,’ Prinos Carbon Storage is set to play a crucial role in reducing emissions from hard-to-abate industries such as cement, refining, and chemicals.

EnEarth’s Commitment to Decarbonization

Nikolas Rigas, EnEarth’s Head of Carbon Storage, expressed gratitude to the European Commission and EU Member States for their support, emphasizing the project’s alignment with the growing demand for decarbonization in European industries. Rigas highlighted the importance of Prinos CO2 in providing a solution for industries where CO2 production is intrinsic to the manufacturing process and cannot be easily mitigated through fuel changes or energy efficiency measures.

EnEarth’s vision for Prinos CO2 extends beyond emissions reduction in Greece, aiming to create a green industrial transition hub in northern Greece that will boost the local economy and contribute to the EU’s decarbonization goals. By repurposing the existing facilities of the Prinos oil and gas field for carbon storage, EnEarth is leveraging decades of operational experience to establish a regional carbon storage facility that will play a pivotal role in Europe’s green future.

Pioneering Carbon Storage in Greece

Prinos Carbon Storage represents a groundbreaking initiative in Greece, with the facility being identified as the country’s sole suitable site for carbon storage. Following the award of a carbon storage exploration license in 2022 and a formal application for a CO2 storage license in 2024, EnEarth is on track to establish the first carbon storage site in the Mediterranean region, setting a precedent for sustainable industrial practices in the area.

With a strong commitment to decarbonization, EnEarth and the Prinos Carbon Storage project are poised to lead Greece, the South-Eastern Mediterranean region, and the EU towards a greener future, demonstrating the potential for carbon storage to drive economic growth while mitigating climate change.