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European Commission adopts the 6th list of Projects of Common Interest
Today, the European Commission has adopted the 6th list of Projects of Common Interest (PCIs). The list consists of 166 infrastructure projects: over half (85) are electricity, offshore and smart electricity grid projects, and 14 CO2 network projects are included. Very importantly, for the first time, the list also includes 65 hydrogen related projects, evidencing a strong shift towards the achievement of the Green Deal goals. This is a major step forward when it comes to building a European hydrogen backbone, with several projects contributing to the creation of hydrogen networks, storage sites and import terminals, helping to link hydrogen demand and supply across countries and regions.
The European Commission has accepted 65 hydrogen projects out of the 179 submitted. Hydrogen Transmission projects (29) represent the majority of all the hydrogen selected projects, with electrolysers, ammonia reception facilities and underground storage facilities accounting for 17, 9 and 7 respectively. The overall success rate was just 37%, showing that many projects lacked maturity and were not aligned with the eligibility criteria, which no longer support natural gas projects. There is also a significant geographical imbalance, with most projects selected being in Western Europe. In this list, just two offshore pipeline projects were selected.
Daniel Fraile, Chief Policy Officer at Hydrogen Europe, says: ‘’The inclusion of hydrogen projects for the first time in a PCI list is a major step forward and shows Europe’s commitment to lay the foundation of a European hydrogen backbone. This first selection process is also a valuable lesson learnt. We will be working with our members to ensure the next list includes more diversified projects (both type wise and geographically).’’
It is worth noting the low amount of underground hydrogen storage facilities selected (7 out of 20 submitted). Storage will be essential not only to balance supply and demand in the hydrogen system (e.g. steel producer needs constant hydrogen supply), but also to provide flexibility to the power system. More efforts are needed in identifying and developing potential storage projects.
This announcement comes at a time when investors seem to lack confidence about timely availability of the infrastructure (grid and storage). In addition to much needed regulatory clarity that will be delivered by the Gas Package Directive ( a political deal was reached yesterday), solid financing schemes and accelerated planning procedures are necessary. This need is partly fulfilled by the Connecting Europe Facility, although the needed investment is significantly higher than the current €4bn budget.
Selected projects will now receive PCI status and will be eligible to access Connecting Europe Facility funds (except electrolyser projects). Most of them are expected to be commissioned by 2030; except for the Belgian and Dutch hydrogen backbones, likely to be operational respectively in 2040 and 2050.
Following its adoption by the Commission, the Delegated Act presenting the 6th PCI list will be submitted to the European Parliament and the Council. Both co-legislators have two months to either accept or reject the list – a process that can be extended by a further two months if needed. Based on the applicable legal provisions, the co-legislators do not have the possibility to amend the draft list.
For more information: List of PCIs
