Energean proposes $500MM carbon storage facility in northern Greece

Paul Tugwell February 25, 2021

(Bloomberg) --Energean Plc submitted a proposal to the Greek government to build a carbon dioxide storage facility and a hydrogen plant in northern Greece close to its old Prinos oil field.

The project would be the first of its kind in the Mediterranean, Chief Executive Officer Matthaios Rigas said at a conference Wednesday, without providing further details. Capital expenditure for the project is close to $500 million and, if approved, the project will be funded by the European Union’s recovery and resilience facility, a person familiar with the plan said, asking not to be identified as the details are private.

Energean, listed in London, declined to provide further details.

Greece is set to receive 32 billion euros ($39 billion) from the fund designed to help member states overcome the effects of the coronavirus pandemic.

Greece produces around 60 million metric tons of carbon dioxide per year, so the project would help the country reduce its emissions by around 2.5 million tons, or by 4%, with further reductions possible in the future if the project is extended, the person said.

Energean plans to build the small-scale blue hydrogen plant within its existing Sigma onshore site at Kavala, near Prinos. Blue hydrogen refers to the conversion of natural gas into hydrogen and carbon dioxide.

By contrast, the European Union, national governments and utilities are plowing many billions into researching and producing green hydrogen, which uses renewable energy to make the clean burning fuel.

The carbon capture system at Energean’s blue hydrogen plant would trap 99.3% of the emissions, the person said.

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