EU Funds Motor Oil (Hellas) for Hydrogen Production Expansion in Greece
Key Ideas
  • The EU has approved a €111.7m subsidy for Motor Oil (Hellas) to install 50MW of electrolyser capacity for hydrogen production in Greece.
  • The project is part of the Recovery and Resilience Facility programme and aims to produce low-carbon hydrogen and e-methanol for mobility and industrial sectors.
  • The aid is structured to ensure no excessive subsidies, and there is a claw-back mechanism in place to prevent overcompensation if the project turns out to be more profitable.
  • By 2029, Motor Oil (Hellas) plans to produce 60,000 tonnes of low-carbon hydrogen and 25,000 tonnes of e-methanol at the Corinth refinery in Agioi Theodori.
The EU has approved a €111.7m subsidy from the Greek Government to Motor Oil (Hellas) to expand hydrogen production capacity at its Corinth refinery in Agioi Theodori. This subsidy, provided through the Recovery and Resilience Facility programme, will enable the installation of 50MW of electrolyser capacity for renewable hydrogen production. The project, already underway with 30MW under construction, aims to scale up to 50MW, making it the largest industrial complex in Greece. The produced hydrogen will be utilized in the mobility and industrial sectors, supporting the reduction of emissions and the REPowerEU plan. The subsidy approval was granted by the EU to ensure essential support for emission reduction while maintaining minimal impact on competition. It is designed to be just enough to make the project viable, with provisions for a claw-back mechanism in case of unexpected profitability to prevent overcompensation. The project aligns with the EU's Clean Hydrogen Partnership and complements previous funding received by the oil company for carbon capture and storage (CCS) and e-methanol production. By 2029, Motor Oil (Hellas) aims to produce 60,000 tonnes of low-carbon hydrogen and 25,000 tonnes of e-methanol at the Corinth refinery, contributing significantly to the transition towards sustainable energy solutions in Greece.
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