EU to invest Euro3.5bn in energy infrastructure projects

Brussels - Investment in EU energy infrastructure projects is a key part of a Euro5-billion economic stimulus package announced by the European Commission. A total of Euro3.5 billion is proposed for investment in carbon capture and storage (financial envelope: Euro (1,250m), offshore wind projects (Euro500m), and gas and electricity interconnection projects (Euro1,750m).

Announcing a list of specific projects to direct the money from the EU budget, Commission president José Manuel Barroso said: "We need to learn the lessons of the recent gas crisis and invest heavily in energy ... In the current economic and financial climate, projects are finding it particularly difficult to access investment."

According to Barroso, the EU support will put these projects back on track and help to plug the gaps in EU energy interconnections. The projects, he said, focus on cross-border needs and on the development of new technologies essential for Europe's future energy needs.

The EC project list is headed by gas interconnection schemes with a total value of Euro1025 million. These include projects such as the NABUCCO project linking Austria-Hungary-Bulgaria-Germany-Romania (Euro250m), a North Sea pipeline linking Germany-Belgium-UK ((Euro35m) and the Skanled Baltic interconnection linking Poland-Denmark-Sweden (Euro150m).

There are also electricty interconnection projects to a totaol value of Euro705 million, inlcuding one the Republic of Ireland-Wales (Euro100m), with another Euro1205 million and Euro500 million, respectively, earmarked for carbon captrure and storage (CCS) projects and offshore wind projects.

The CCS investment include Euro250 for one of four proposed projects at UK coal-fired power facilities; Kingsnorth (800MW), Longannet 3390MW, (Tilbury 160MW) and Hatfield (90MW). The first three of these project envisage the use of post-combustion technology, while Hatfield features the IGCC process.