Greece: Strong reactions from the market and continuous meetings at the Ministry of Energy and Mineral Resources about CCS

The carbon capture and storage (CCS) project in Greece remains in a state of uncertainty, despite the fact that the institutional framework was recently passed by Parliament.

The three regulatory texts that national regulatory authority for energy waste and water (RAEWW) put out for public consultation appear to have failed to reassure the market;

on the contrary, they opened a new cycle of concern, with the main "players" speaking of ambiguities, gaps and lack of predictability.

The consultation concerned the Pricing Regulation, the Capacity Allocation Code and the Guidelines for conducting international capacity auctions at the CO₂ storage facility in Prinos, which will be operated by EnEarth , a subsidiary of Energean.

How does the market comment on the RAEWW proposals?

While HERACLES welcomes the mobilization for the development of the CCS market, emphasizing the importance of the technology for industries that are "difficult" to reduce emissions, it expresses strong reservations about whether the proposed texts ensure a fully regulated operation of the infrastructure. In its assessment, certain provisions leave room for interpretations that could lead to unequal treatment of users.

The TITAN group is also moving in the same direction , arguing that the partial regulation of an infrastructure of national importance may translate into increased costs for the industry. The group identifies serious shortcomings in both the pricing regulation and the capacity allocation code, warning that the current framework, as proposed, disproportionately strengthens the position of the operator.

Uncertainty and investment risk

Helleniq Energy focuses mainly on excluding or limiting oil refining from access to CO₂ storage capacity, noting that this is a key sector in the CCUS chain. At the same time, it expresses reservations about binding capacity from projects that are delayed in implementation, proposing greater flexibility and the possibility of transferring rights, so as not to "freeze" capacities.

Similar concerns are expressed by Motor Oil , which emphasizes that the lack of clarity in the rules increases the risk for potential users and makes long-term investment planning difficult.

Energean: Regulatory changes required to implement the major project in Prinos

For its part, EnEarth underlines that a project of the size and complexity of Prinos CO₂ Storage requires a clear and legally secure regulatory environment to proceed. The company warns that the proposed changes to the pricing methodology transfer excessive risk to the operator and may undermine the ability to finance and make a final investment decision (FID).

It also places particular emphasis on the transparency of the Market Test and the need to fully inform participants about the available storage capacity, in order to avoid distortions or secondary markets outside regulatory control.

The company emphasizes, therefore, that the regulatory framework does not provide the required legal and regulatory certainty for the implementation of a long-term and highly capital-intensive investment, such as the warehouse in Prinos.

He concludes by saying that if the original pricing methodology is not restored, then the possibility of making a final investment decision for the project is at risk.

The next step and the back to back meetings at the Ministry of Economic Affairs and Energy

Despite the divergences in individual positions, the picture that emerges is clear: the market demands a coherent, transparent and predictable framework. Competent sources report that the Ministry of Energy keeps the issue high on the agenda, with successive meetings with the regulatory authority and the stakeholders involved, under the pressure of the strict timelines of the Recovery Fund.

Whether CCS can become a reliable pillar of the Greek decarbonization strategy will ultimately be determined by whether the regulatory puzzle comes together in a timely manner – and above all on terms that inspire confidence in both industry and investors.

source: Liberal.gr