With the green transition an inescapable reality, even if delayed, the energy landscape in the Eastern Mediterranean is constantly changing with new technologies, almost unknown just a few years ago, coming to the fore as the barometer players take positions battle to take advantage of potential opportunities.
Carbon capture, utilization and storage (CCS) technologies concern the capture of CO2 from industrial facilities or power plants where it is emitted, its compression and its transport to natural geological formations, either in Greece or abroad, suitable for storage . Energy-intensive industries with CO2 storage will save significant amounts they pay to buy pollution rights.
The development of CCS technology can provide a competitive advantage to Greek industries, thereby creating employment opportunities and attracting EU funding, in particular through the Innovation Fund.
Synergies
At the same time, the development of synergies between the participants in the demanding undertaking of CO2 storage becomes necessary to spread the business risk, in an essentially uncharted market. In order to create a competitive business environment – where investors can recoup costs within a reasonable time horizon, and users are incentivized to sequester CO2 by reducing user tariffs and expanding infrastructure – risks should be shared… equally to incentivize investors, states or individuals.
As demonstrated through the East Mediterranean Gas Forum, CO2 sequestration enters the energy puzzle with claims, with the project in Kavala uniting the energy and industrial giants.
Prinos
With the eye fixed on the new data brought by the times of the green transition, the innovative project of CO2 storage by Energean in Prinos is gradually maturing.
The "Prinos CO2 Storage" project has been included in the 6th list of European Projects of Common Interest. The project budget is over 1.5 billion euros (150 million euros from the Recovery Fund), of which approximately 600 million euros concern the DESFA department and the rest Energean. By the summer, the Commission is also expected to give the green light for its financing, although the EU bureaucracy cannot be ruled out to put obstacles in the acceleration of the procedures.
Energean's design includes the construction of a repository in a depleted Prinos deposit, with an absorption capacity of 2.5 to 3 million tons of CO2 per year in full operation (until 2027). In order for the project to proceed, there will be a competition for the preparation of an Environmental Impact Study, the granting of the storage permit by the HEREMA (Hydrocarbons Authority), but also a Market Test that will show whether there is interest in utilizing the infrastructure.
The Titan and Heraklis (Holcim) cement companies, which are launching the sequestration of emissions at their units in Kamari in Boeotia and in Milaki in Evia, respectively, are among the suitors for exploiting the infrastructure of Prinos.
Titan
Titanas is implementing the "IFESTOS" project, the largest of its kind in Europe, which will sequester all the carbon emissions of the Kamari plant's production process, aiming to produce three million tons of carbon-neutral cement. The project has secured a grant of 234 million euros from the Innovation Fund.
Hercules
The "OLYMPUS" program concerns the green transformation of the Herakles cement production plant in Milaki, Evia, into a zero carbon footprint facility, utilizing innovative carbon dioxide capture and storage technologies. From the operation of the technology to be adopted, the annual avoidance of CO2 emissions is estimated at 1 million tons.
Of the EUR 300 million investment, the EU Innovation Fund will cover EUR 124.5 million.
On the same wavelength, Motor Oil's "IRIS" project is moving, which aims to store the percentage of captured CO2 that will not be used for the production of synthetic methanol with a low carbon footprint.
Time is running out
Given the suffocating timelines of the Recovery Fund, by 2026 at the latest, it is essential that the project's operating license has been issued.
"There is a lot of bureaucracy in the Commission as well, but we are trying hard," said the Managing Director and Country Manager of Energean in Greece, Katerina Sardis, at the forum.
At its full development, in 2028 according to the plan, the capacity of the project will reach 3 million tons per year, starting the first phase with a capacity of about 1 million tons per year.
However, the potential of the said geological formation in Prinos is not sufficient to cover the needs of the Greek market as it is estimated that it will cover less than 50% of the quantities of CO2 bound percentages.
«Αpollo CO2»
In this light, funds of 75 million euros have been secured by REPowerEU for the creation by DESFA of the "Apollo CO2" Project. The project includes a new network of CO2 transport pipelines, which will start from the border of Attica with Boeotia, cross the Basin to the South and initially collect pollutants in gaseous form, from cement factories and refineries.
In a facility in the area of Revythoussa, the CO2 will be liquefied, loaded onto ships and taken to the Prinos warehouse or, in the future, to other storage areas that will be developed.
The project could "cover" 70% of Greece's pollutants, around 11 million tons of CO2 per year. To date, feasibility studies have been completed, however whether the project comes to fruition will primarily depend on industry involvement with a final decision to be made in 2025.
It is recalled that a recent study carried out by the Energy Institute of South-East Europe demonstrated, apart from Prinos, 4 areas (Aspropyrgo-Elefsina-Corinth, Volos, Thessaloniki, Alexandroupolis) in which carbon capture hubs (CCUS hubs) can be built which will they collect pollutants from power plants, cement plants, refineries and steel mills.
Egypt on the horizon
At the same time, the possibility of transporting and storing CO2 in Egypt is being examined by the Ministry of Environment and Energy, based on what government officials reported at the forum.
The Deputy Minister of Environment and Energy Alexandra Sdoukou stated that the EMGF is expanding its activity in areas such as cooperation in the development of CCS infrastructure as well as in the development of hydrogen. He added that Greece and Egypt are in the preliminary stage of talks on cooperation in CCS since Egypt has the geological formations that could host such infrastructure.
Of course, a brake on this effort is the lack of a relevant institutional framework from the EU.
source: ot.gr