A new study by the Hellenic Hydrocarbons and Energy Resources Management Co. (HEREMA) and global consultant KPMG has shown that carbon capture and storage (CCS) has the potential to cut emissions costs for Greek industrial companies by EUR 6 billion (approx. USD 6.677 billion).
During a special event, the management of state-owned HEREMA, or EDEYEP in Greek, said that exploration and production company Energean plc (LON: ENOG) plans to set up an underground storage site with the capacity to hold 60 million tons of carbon dioxide (CO2), Balkan Green News Energy reported.
The storage site will be located in the depleted hydrocarbons reserve of Prinos, on the island of Thassos offshore Kavala in northern Greece.
Based on a price of EUR 100 per ton of CO2 within the European Union’s Emissions Trading System (EU ETS), the site could generate savings of EUR 6 billion for Greek industrial players.
The project is part of the National Recovery and Resilience Plan Greece 2.0 which is expected to get EUR 100 million in funding from the European Commission (EC).
Big industries have already expressed interest in participating in the project in a move to reduce their carbon footprint and improve their competitiveness, Aristotelis Stefatos, CEO at HEREMA, was quoted as saying.
Large industries in Greece, such as refineries, cement and metal production, and electricity, are estimated to have annual CO2 emissions of 30 million tons, according to Balkan Green News Energy.
HEREMA intends to explore other potential carbon storage sites in Greece in places like Grevena, Magnesia and Thessaloniki.
Being a relatively recent technology, carbon capture is expected to mature and become cheaper over time, Balkan Green News Energy noted.
Companies can take advantage of easily available EU funding for this technology and reduce costs by buying fewer CO2 emissions rights (EU Allowances, or EUA), it added.
With this new framework, HEREMA provides incentives for oil and gas companies to use depleted underground deposits for CO2 storage.
Thus, companies which are not expected to proceed with their hydrocarbon exploration in different concessions across Greece can capitalize on their progress so far.