EU Allocates €1.25 Billion for Energy Projects: Boosting Renewable Integration and Hydrogen Infrastructure
Key Ideas
  • The European Commission has allocated €1.25 billion in grants to fund 41 cross-border energy infrastructure projects, promoting energy security and decarbonization.
  • €750 million will support electricity projects, including the Bornholm Energy Island and the Danube InGrid, enhancing renewable energy integration.
  • €250 million will fund 21 hydrogen projects across 16 EU countries, focusing on developing hydrogen infrastructure and supporting the EU's Hydrogen Strategy.
  • An additional €250 million will be allocated for CO2 infrastructure, including feasibility studies and carbon capture and storage projects to achieve the EU's Net Zero Industry Act goals.
The European Commission has announced a substantial allocation of nearly €1.25 billion in grants under the Connecting Europe Facility (CEF) to fund 41 cross-border energy infrastructure projects across the European Union. This funding surpasses the original budget and is the largest funding round under the current CEF Energy programme, signifying a significant milestone in Europe’s energy transition efforts. The projects selected under the Trans-European Networks for Energy (TEN-E) policy framework aim to enhance energy security, market integration, and decarbonization. The funding will support various projects, including those focusing on electricity infrastructure, hydrogen infrastructure, and CO2 infrastructure. Notably, this funding round under the revised TEN-E Regulation includes the inclusion of hydrogen projects, aligning with the EU's Hydrogen Strategy. Key projects include the Bornholm Energy Island for offshore wind capacity integration, the cross-border hydrogen corridor BarMar-H2med, and CO2 storage facilities such as the Prinos Storage Facility in Greece. The Commission's decision to allocate this funding followed a positive vote by EU Member States. The projects will be essential in furthering Europe's green transition and energy security goals. With the next CEF Energy call for proposals expected in 2025, the EU aims to accelerate its efforts in renewable integration, hydrogen infrastructure development, and achieving its decarbonization targets.
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