EU approves €150m aid for Greek carbon storage project

The European Commission approved on Monday a €150 million measure under EU state aid rules to support the construction of a carbon storage facility in Prinos, Greece, funded by the bloc’s Recovery and Resilience Facility (RRF).

This initiative aims to advance Greece’s climate targets and aligns with the EU’s European Green Deal goals.

The funding will assist EnEarth Ltd., a Greek subsidiary of Energean plc, in partially covering the construction costs for both onshore and offshore infrastructure.

In its first phase, poised to launch in 2027, the facility will store up to 1 million tons of CO2 annually from industrial sources. A future second phase is expected to expand the facility’s capacity to 2.5 million tons per year by 2030.

The €150 million grant, disbursed in three instalments until 2026, will cover 90 per cent of the project’s funding gap.

To limit market distortion, the aid includes a clawback mechanism, requiring EnEarth to return part of the funds if the project generates significant revenue. The Commission deemed the measure necessary, proportionate, and effective for reaching EU and Greek climate objectives.