The seven milestones of the major investment in Prinos

The reallocation of Recovery Fund resources has led to a restructuring of both the financing and the implementation timelines for the major CO2 storage project in Prinos.

The first change concerns the financing of the project off the coast of the Gulf of Kavala. Precisely because the first phase of the investment falls under projects subsidized by the Recovery Fund, and therefore cannot be extended beyond June 30, the funding mix is changing, meaning that 50% of the funding will come from the Public Investment Program.

The sources of funding are described in detail in the joint decision of the Ministries of National Economy and Regional Development and Public Works, which was posted yesterday on the Diafania transparency portal. According to the decision, the Recovery Fund will contribute 75 million euros, the National Public Investment Program will contribute 25 million, and the National Development Program will contribute 50 million euros.

The initial plan called for the full €150 million in support for the first phase of the project, with a budget of 517 million euros and a storage capacity of one million tons of carbon dioxide per year, would be covered by the Recovery Fund. It should be noted that Prinos’s capacity is expected to reach 3 million tons of CO2 storage per year, with a cumulative budget for both phases exceeding 1 billion euros.

The second change concerns the milestones for the final phase, with drilling being postponed to the second half of 2027, when the final investment decision will be made by EnEarth, a subsidiary of Energean that is “running” the project. In any case, it had been clear for many months that the initial goal of drilling this summer was unachievable.

There are several milestones here, divided into “Phase 1” (Recovery Fund) and “Phases 2 and 3” (Public Investment Program), highlighting the great complexity of Greece’s first CO2 storage project.

The first milestone—the payment of €21.45 million, corresponding to the first installment (14.30% of the total grant amount)—was achieved last summer. The same applies to the second milestone, concerning the second installment of €15 million (10% of the total), which was paid upon completion of the Basis of Design for the drilling operations.

The transport of the “OMEGA” offshore platform

From there on, the following remain pending:

• The transport to Greece of the “OMEGA” offshore rig that will perform the drilling, which is expected soon and amounts to a payment of €25 million (16.67% of the total).
• The decision approving environmental terms (AEPO) and the issuance of the installation permit by the competent authority for the offshore platform in the field. This milestone is not considered a foregone conclusion, as it does not involve only the Ministry of Environment and Energy. EDEYEP must submit the relevant recommendation to the Ministry of Infrastructure and Transport. The fulfillment of this milestone entails a payment of 10 million (6.67% of the total).
• The chartering of the crane ship for the installation of the “OMEGA” platform, which amounts to a payment of 3.55 million (2.37% of the total). This concludes “Phase 1,” which involves €75 million in funding from the Recovery Fund.
• The completion of studies regarding the platform’s superstructure, the CO2 transfer pipeline from onshore to offshore facilities, the interconnection cable, and all project facilities for the injection of up to 2.8 million tons of carbon dioxide. This milestone also includes the submission, evaluation, and approval of the Development Plan for the entire project (Phase 1 and Phase 2), valued at 1 billion euros. The payment amounts to €6 million from the Public Investment Program (“Stage 2”), representing 4% of the total amount.

Time for Drilling

• The order for long-lead drilling equipment required to be installed in accordance with the project’s development plan. This is scheduled for late 2026. It includes, at a minimum, the equipment for the four wells (two CO2 injection wells and two water production wells) required for the storage of up to 1 million tons of carbon dioxide, regardless of the drilling schedule, as well as the installation of the OMEGA platform. The above amounts to 19 million euros, or 16.7% (“Stage 2”).
• Upon the first CO2 injection or water production well, the installment of the PDE investment grant (“Stage 3”) equal to 25 million euros, i.e., 16.67%, is paid. The start of drilling is scheduled for the end of the first half of 2027.
• Upon the drilling of a CO2 injection well, the final installment (“Stage 3”) is also paid, which also amounts to 25 million euros, i.e., 16.67% of the total investment aid amount.