EU Greenlights Key Step for Greece’s Prinos CO₂ Storage Project
EnEarth is advancing plans to develop a carbon dioxide storage hub in depleted offshore oil reservoirs beneath the Aegean Sea, near the northern Greek city of Kavala, after receiving a favorable opinion from the European Commission on its storage permit application submitted around a year and a half ago. Including related infrastructure, the project’s total value could reach up to EUR 1.2 billion.
The European Commission’s Directorate-General for Climate Action (DG CLIMA) issued the positive opinion following its review of EnEarth’s proposal to store CO₂ in the Prinos reservoir. According to the company, the technical documentation submitted meets EU requirements and demonstrates that the site is suitable for safe, long-term storage. EnEarth added that the assessment highlights the strength of its geological and technical studies, supporting the company’s approach to understanding reservoir dynamics and establishing systematic monitoring procedures.
Prinos lies beneath the Aegean Sea in the Kavala Gulf area. EnEarth is a subsidiary of Energean, headquartered in the United Kingdom.
“It confirms what we already know – that Prinos is a safe storage site and a vital player in decarbonising hard-to-abate industry in Europe and Greece, and helping our country meet its goal of reducing emissions by 80 per cent by 2040,” EnEarth Managing Director Nikolas Rigas said.
Permitting decision rests with Greece’s licensing authority HEREMA
EnEarth stressed that the Commission’s opinion is not legally binding, but described it as a significant milestone that strengthens the ongoing evaluation by Greece’s licensing authority, the Hellenic Hydrocarbon and Energy Resources Management Co. (HEREMA), which will make the final decision on issuing the storage permit. EnEarth filed its application with HEREMA in July 2024.
EU funding totals EUR 270 million; EBRD backs equity investment
EnEarth said it has secured EUR 270 million in European Union support for the Prinos project, including EUR 150 million via the Recovery and Resilience Facility and National Recovery and Resilience Plan 2.0, and EUR 120 million through the Connecting Europe Facility.
The European Bank for Reconstruction and Development (EBRD) approved an equity investment in EnEarth last year of up to EUR 75 million. The lender said at the time that the project value was estimated at EUR 918 million, and noted it would be EBRD’s first carbon storage project.
Injection rates: up to 1 Mt over 20 years in phase 1, rising later
Under phase 1—covered by the current permit application—EnEarth plans an injection rate of up to one million tons over a 20-year period. The company said capacity could later be increased to as much as three million tons per year.
Photo: EnEarth
The European Union has also included the Kavala Gulf initiative among its projects of common interest (PCIs), an EU designation intended to facilitate strategic cross-border energy infrastructure.
Timeline: market test framework pending; pilot drilling planned; start targeted for 2030
EnEarth said it is awaiting completion of the legal framework needed to conduct a market test, starting with non-binding bids and moving to binding offers. The company then aims to begin pilot drilling in the summer and may take a final investment decision later this year. Based on current planning, the targeted start date is the first quarter of 2030.
In Greece, the most advanced carbon capture initiatives are being pursued by oil refiners Motor Oil and Hellenic Energy, and cement producers Titan and Heracles. EnEarth said it intends to provide CO₂ storage services not only domestically but also to emitters in neighboring and regional markets such as Bulgaria, Cyprus, Croatia, Italy and Slovenia. Still, it acknowledged that Prinos’s capacity is constrained relative to projected emissions and expected demand.
Separately, Greece signed a memorandum of understanding about a year ago with Egypt on carbon capture, utilization and storage (CCUS). Some estimates place Greece’s total CO₂ storage potential as high as 580 million tons.