Energean and DESFA are joining forces in an effort to give life to the first geological CO2 storage project in our country. Following the practice of the majority of related projects internationally, they agreed to develop, the Operator the transport of CO2 emissions from the capture points, and Energean their storage in the Prinos Basin.
For this reason, they submitted a joint proposal to the EU, so that the project could obtain a Project of Common Interest (PCI) stamp. As Euro2day.gr is able to know, according to the proposal, in the first phase it will be possible to store 500,000 to 1 million tons of CO2 per year for the first two years (2025-2026) and then from 2.5-3 million tons on an annual basis. The project has already attracted interest not only from domestic customers but also from Southern Italy and the Balkans.
The project claims a place in the 1st Union List of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs), under the revised EU Regulation. for the trans-European energy infrastructures TEN-E Regulation 2022. In the next period it is expected that a date will be set by DG Energy for the presentation of this category of projects from all over Europe. The first list of PCI/PMI projects will take effect from early 2024.
Despite the fact that the first steps have been taken to promote investments in this sector and in our country, to achieve its climate goals, however, there are still many issues to be settled.
However, the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA) opened the public debate, presenting the White Paper , drawn up in collaboration with KPMG, on the development of a functional CO2 capture and storage (CCS) value chain. "Let's see the options and solutions together", was the message of the managing director of HEREMA Aris Stefatou .
In April 2022, the Ministry of Environment and Energy legislated the subordination to HEREMA of the competence for granting CO2 exploration and storage permits, as well as the overall management of public rights. In this context, it is also possible for holders of hydrocarbon exploration licenses to obtain a CO2 storage license, in the event that they find depleted reservoirs on the boundaries of the blocks they have taken over.
Energean immediately took advantage of the new legislative framework . The proposal he submitted for the investigation of the possibility of CO2 storage in the Prinos basin was accepted by HEREMA last September, with its validity starting from 1/10/2022 and ending in August 2024. In fact, the project has been included in the National Recovery and Resilience Plan , under the RRF, with a funding amount of 100 million euros. The capacity of Prinos is estimated at 60 million tons of CO2 emissions.
The company commissioned specialist studies to Halliburton and Wood Plc , from which it appears that the project can be commissioned in the next three years. Energean will submit a technical study to EDEFEP and, once approved, will proceed to the next step, to apply for a CO2 storage permit in Prinos.
So far, only Energean has expressed investment interest in a similar project. However, interest from broadcasters for storage locations has been recorded by HEREMA. These are cement factories, refineries, but also electricity generation (DEP). Annual industrial CO2 emissions in our country are estimated at 30-35 million tons.
Apart from Prinos , there are also three other potential storage areas, but at a theoretical stage for the time being. It is in the Grevena basin , west of Thessaloniki and in the basalts of Volos . These areas have been put under the microscope of HEREMA for research.
And the way may be legislatively opened for the storage of CO2 in our country, however, there are many issues still to be settled, as market sources say. One of them is of an institutional nature, which body will undertake the licensing of the investment, besides HEREMA (environmental, etc.).
Also, the lack of transport ships is considered a thorn , as is the transport by sea as such. Ratification of changes to the London Protocol on transboundary CO2 transport is also pending, with proposed solutions still up in the air. Another question is whether state aid will be given for this type of investment, as other countries give, and even generously, the information says. For example, the United Kingdom is mentioned, with aid of more than 10 billion and the USA with more than 16 billion euros.
The interest, in fact, for similar projects in the EU. seems to have been launched. Between 2021 and 2022 an increase of 44% is recorded for new CO2 storage projects, most of which are located in Northern Europe. In the Mediterranean, apart from Greece, similar designs exist in Ravenna, Italy, Spain and Croatia.
source : naftemporiki.gr
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