The European Commission has greenlit €150 million in funding from the EU's Recovery and Resilience Facility (RRF) to support the development of a carbon storage facility in Prinos, Greece.
This investment, announced Monday, aligns with EU state aid regulations and supports Greece's climate initiatives and the European Green Deal's objectives.
The project, led by EnEarth Ltd., a subsidiary of Energean plc, will involve constructing infrastructure both onshore and offshore to capture and store up to 1 million tonnes of CO₂ per year from industrial sources during its initial phase. The grant covers 90% of the funding gap and will be disbursed in three installments through 2026. This phase will be followed by future expansion to 2.5 million tonnes annually, expected by 2030.
The aid will primarily fund the installation of a large-scale pipeline system to transport CO₂ from an onshore collection site to offshore storage. The Commission approved the grant, noting that it would help meet Greece's climate targets and EU environmental objectives, with safeguards to ensure minimal market distortion. A claw-back mechanism is in place, requiring EnEarth to return some aid to Greece if the project generates substantial extra revenue.
The facility is slated to start initial operations by 2027, contributing to the EU's broader carbon management strategy, as well as Greece’s transition to a greener economy.