Prinos CO2: Market Test begins, new timeline for milestones

Prinos Kavala - Greece

The readjustment of the project's funding sources is leading to a review of the milestones for the technical "maturation" by EnEarth, a subsidiary of Energean, of the Prinos CO2 underground carbon dioxide storage facility . At the same time, the company has already initiated the process of approving the necessary documents for the Market Test, with the result that it is estimated that the "premiere" of the Market Test will take place by July at the latest.

The adjustment of the funding is being made as the funds from the (EU) Recovery Fund are being reduced to 75 million euros, from 150 million initially foreseen. The change was made as it was not possible to achieve the initial milestones of the RRF, with the remaining 75 million euros now being covered by national resources.

Specifically, according to a Joint Decision of the Greek Minister of Environment and Energy, Stavros Papastavros, the Deputy Minister of National Economy and Finance, Nikos Papathanasis, and the Deputy Minister of Environment and Energy, Nikos Tsafos, 25 million euros will come from the National Public Investment Program, while 50 million from the National Development Program. With this change, the two final milestones (regarding the execution of the same number of drilling wells) are transferred to the end of June 2027.

It is worth noting that the total investment for the project will amount to 1.1 billion euros, creating 30,000 jobs. When fully developed, the infrastructure will have the capacity to store approximately 2.8 million tons of CO2 per year. This amount corresponds to 25%-30% of the annual carbon dioxide emissions of industrial sectors, such as the cement industry and refining, which are considered difficult to fully decarbonize. Prinos CO2 has also secured 120 million euros in European funds from the CEF (Connecting Europe Facility) mechanism.

Prinos CO2: The Market Test

Regarding the Market Test, EnEarth has sent the necessary documents to HEREMA, which is the official competent licensing authority in Greece for carbon capture and storage (CCS). After the submission of a proposal by HEREMA and the approval of the documents by the Regulatory Authority (RAAEY), the Market Test process can begin.

According to information, this is expected to happen no later than next month, thus marking the start of the process of capturing market interest in the project. In the first stage, the non-binding phase of the Market Test will be carried out, so that binding offers from interested parties can follow.

A "signal" for the successful outcome of the Market Test is first of all the fact that EnEarth has signed around 15 MoUs with companies that "see" the use of the infrastructure for the storage of their emissions. The fact that Greek industries are in the process of developing CO2 capture projects totaling around 4 million tons per year, therefore exceeding the storage capacity of the infrastructure, also "points" in the same direction.

The goal is to complete the Market Test in time so that the Final Investment Decision for the project can be "synchronized" with the first two drillings. Therefore, the company's planning is to give the "green light" for the investment within the first half of next year.

The new roadmap

Enearth has already completed the first milestone of the RRF, consequently disbursing the first 21.45 million. In order to receive the remaining 53.55 million of the Recovery Fund, it must, among other things, procure and transport the offshore platform "OMEGA" to Greece by the end of June, issue the installation approval for the platform, as well as charter the crane vessel that will place it.

Of these milestones, the biggest challenge is the approval of the installation. This is because there must be a relevant recommendation from HEREMA to the Ministry of Development, which will give the "green light".

Subsequently, and for the disbursement of 25 million from the Public Investment Program, the FEED studies concerning the superstructure of the OMEGA platform, the CO2 transfer pipeline from the onshore to the offshore facilities and the interconnection cable, as well as all the project facilities for the injection of up to 2.8 million tons of carbon dioxide, must be completed by 31 December 2026. Also, by the same deadline, the equipment for the four wells (two CO2 injection wells and two water production wells) required for the storage of up to 1 million tons of carbon dioxide must be ordered.

Finally, the milestone for the 50 million euros from the National Development Program is that the first two drillings be carried out by June 30, 2027. It is worth noting that the above deadlines may be extended in the event of force majeure events or reasons that make the completion of the respective works objectively impossible. In the event of an extension, the milestones for the payment of the investment aid are postponed accordingly.

source: powergame.gr

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