Energean is speeding up the project for the development of the first CO2 storage site in Greece, so that important critical milestones to be achieved by 2024, which will allow the infrastructure to be ready for operation by the beginning of 2026. The under seabed storage has joined the European Projects of Common Interest (PCI), while it will tske place in an exhausted deposit of Prinos (managed by Energean), with the aim of releasing 1 million tons of carbon dioxide per year in the first phase.
During the maturity phase of the investment underway, the company has already started the procedures for commissioning the Environmental and Social Impact Study (ESI). The same has been done with the procedures for the conversion into a storage permit of the research permit received from the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA). It is recalled that HEREMA is the competent licensing authority for the geological storage of carbon dioxide.
The deadline of early 2026, results from the €150 million subsidy that has been secured for the project through the Recovery & Resilience Facility. Fact which means that the time horizon for the "premiere" operation of the project, whose budget is expected to exceed 400-500 million euros, just for the first phase of operation, is inflexible. In fact, if the entire value chain that needs to be created (sequestration of CO2 in the industrial facilities and its transport to the warehouse) is taken into account, then the total investment reaches 1 billion euros.
The critical steps
In order to reach the time target for the start of operation, a series of important steps will have to be taken already this year. First of all, the ESI should get the "green light", after it has been drafted and put into consultation. Also, Energean should obtain the Storage Permit from HEREMA.
Also, this year it is necessary to "run" the Market Test , which will confirm the interest of users (i.e. industries that will reduce their carbon footprint by binding their emissions) to utilize the infrastructure.
As in all such procedures, the Test Market will be conducted in two phases, with participants proceeding at the initial stage with a non-binding expression of interest and, in the subsequent phase, submitting their binding offers.
Synchronization and the supply chain
The above steps show why 2024 is a critical year for the project, since only if they are implemented the way will be opened for Energean's Final Investment Decision. It must be taken no later than the 1st quarter of 2025. This is because the investment's "green light" is a condition to launch the drilling which is necessary for the operation of the under seabed storage and the injection of CO2.
The completion of the drilling is placed at the end of 2025 at the latest, in order to "unlock" the grant by HEREMA of the operating license for the infrastructure. Which should be done by the beginning of 2026, so that the initiation of the warehouse can follow.
Naturally, the launch of the project will have to be synchronized with the completion and preparation of the supply chain, so that with the warehouse's operation, there will be "customers" to serve. Thus, both the users of CO2 capture facilities and a solution for the transport of liquefied carbon dioxide to Prinos should be completed.
No provision for licensing
Although the time frames are tight, it is estimated that all the companies involved will have completed the procedures by the beginning of 2026, concerning their own "sphere of responsibility". However, what worries is the fact that until now there is no provision for the licensing of the projects that should be done both at the warehouse and at the users' premises.
So, apart from the permits that HEREMA will issue for the warehouse, it is not yet clear which services will give the "green light" for the necessary accompanying projects - nor how long they will take, as they will be projects of a completely new industry , which will be asked to license.
The same applies to CO2 capture facilities in industries, emission liquefaction infrastructure, as well as ships or their transport vehicles. It is indicative that the Ministry of Internal Affairs has not yet established a competent Directorate for CO2 capture and storage projects (CCS), on the model of Directorates e.g. for electricity or for RES & alternative fuels.
The "greening situation" of TITAN & HERAKLIS and the DESFA pipeline
Energean has already signed 8 non-binding agreements with industries in the wider region for CO2 storage. Among the main prospective users are the domestic cement industries, given that TITAN and HERAKLIS (Holcim) have emission capture projects in progress, at their factories in Kamari in Boeotia and in Milaki in Evia, respectively.
Also, DESFA is planning the construction of the first CO2 transport network that frames the above two projects (but also all similar industrial projects in the wider area). For the development of the network, financing with 75 million euros has been secured through REPowerEU, while its main "trunk" will be a transmission pipeline which will lead from the industrial facilities to a carbon dioxide liquefaction terminal. Such terminal will be developed by the Operator in a coastal area in Attica. From the terminal (the construction of which is not financed through REPowerEU), the liquefied CO2 will be transported by a barge to the warehouse in Prinos.
source: insider.gr