Page 14 - FSUOGM Week 40

FSUOGM PIPELINES & TRANSPORT FSUOGM

EU to plough €1bn into energy

infrastructure

EU EU member states have backed a plan by the hydrogen strategy in July, targeting 10mn tonnes
European Commission to invest almost €1bn per year of annual production of the fuel by 2030.
The EU also wants ($1.2bn) in energy infrastructure projects. To establish a fully-function hydrogen market
rules established for The funds will be drawn from the Connecting in the future, Simson said rules were needed on
hydrogen trade. Europe Facility (CEF), set up specially to distrib- hydrogen trade with potential partners, listing
ute grants to develop the bloc’s infrastructure. Ukraine and Morocco as examples. Both are
Only schemes designated as EU projects of com- connected to the bloc with gas pipelines that
mon interest (PCI) can access the fund, which could be repurposed to flow hydrogen.
allocates grants on a yearly basis. “To trade renewable and low-carbon hydro-
Included this year are two projects for elec- gen reliably across borders, we will need proper
tricity transmission, one for smart electricity rules,” Simson explained. “When I say trade, I do
grids, six for CO2 transport and one for gas. The not mean only within the EU, but also with our
electricity and smart grid projects will secure international partners, starting with our close
84% of the total. neighbourhood, in particular Morocco and
The bulk – €720mn – will fund the con- Ukraine.”
struction of a subsea power cable linking The EU wants to put hydrogen “high on the
Poland and Lithuania. The cable will enable agenda” in energy talks with other countries
the Baltic States to synchronise with the con- such as the US, Japan and South Korea, Simson
tinental European energy system and cut ties continued. It will also step up its engagement in
with the Soviet-built BRELL ring. A further initiatives like the International Partnership for
€102mn will be spent on the Danube Ingrid Hydrogen in the Economy and the Clean Energy
smart grid project in Hungary and Slovakia, Ministerial and Mission Innovation.
while an equal amount will be allocated to the “We should use these discussions to create
planned Porthos CO2 transport network link- a global rules-based market for hydrogen solu-
ing the Netherlands and Belgium. tions, including harmonised safety and envi-
A €28mn grant will be issued to Bulgaria to ronmental standards,” she explained. “If we do
help pay for the construction of its section of the it right and take the lead we can establish bench-
Bulgaria-Serbia gas pipeline, due to start up in marks, giving our currency, the euro, a stronger
2022. A further €14mn will finance a study on role.”
developing wind farms in the North Sea. Simson notably did not point to Russia as a
possible hydrogen trading partner, even though
Hydrogen trading the EU shares far more pipeline capacity with the
The EU has scaled back funding for oil and gas country and any other third-party state.
projects in recent years, while upping invest- Russia is eager to claim a slice of a European
ments in cleaner technologies. hydrogen market, if it emerges, primarily by con-
Speaking in October 5, European energy verting its ample gas reserves into so-called blue
commissioner Kadri Simson touted hydrogen hydrogen. However, Moscow could take years to
energy’s potential as a means of decarbonis- establish the necessary framework for regulating
ing the bloc’s economies. The EC adopted a and incentivising hydrogen development. ™

P14 www. NEWSBASE .com Week 40 07•October•2020