GAZ-SYSTEM Submitted Candidate Projects in Hydrogen Industry for PCI Status
The company intends to implement three hydrogen investment projects using European support instruments.
The works on the first hydrogen PCI list development are pending. GAZ-SYSTEM has applied for granting the PCI status to three projects planned by the company. These include:
- Nordic-Baltic Hydrogen Corridor, which aims to establish a corridor to transport hydrogen from Finland through the Baltic States and Poland to Germany.
- Domestic hydrogen backbone including infrastructure connecting domestic hydrogen producers, import sources, and the hydrogen storage facility in Damasławek with end users and possibly local distribution networks.
- Hydrogen storage facility in Damasławek.
GAZ-SYSTEM remarks that the draft PCI hydrogen list will be published by the European Commission in autumn 2023. GAZ-SYSTEM will be able to apply for CEF funding for hydrogen projects after the adoption of the PCI list by the European Union institutions.
In June 2022, an amendment to the TEN-E Regulation came into force, establishing new EU rules for cross-border energy infrastructure. It aims to accelerate the efforts to decarbonise and interconnect cross-border energy infrastructure in order to help EU countries meet their 2050 climate targets. The new TEN-E Regulation maintains the existing legislation so as to facilitate timely implementation of cross-border infrastructure through solutions that streamline and accelerate the necessary permitting procedures, as well as provides for the possibility to apply for funding for PCI projects under Connecting Europe Facility (CEF).
As stipulated in the previous TEN-E regulation in force until mid-2022, Projects of Common Interest (PCIs) include the initiatives that are pivotal for the implementation of European energy and climate policy. The most important of these initiatives provide affordable, secure and sustainable energy for all citizens, as well as contribute to building low-carbon economy in the EU. These projects should also foster the development of priority energy infrastructure corridors and significantly improve security of supply, market integration and competition. PCI projects can benefit from the best practices deriving from TEN-E Regulation, including such advantages as accelerated permitting process. PCI status also allows to apply for funding under the Connecting Europe Facility (CEF), provided that certain conditions are met.
The company's investment projects are in line with the EU's natural gas infrastructure policy priorities and their relevance has been regularly confirmed in the PCI lists established to date and considered eligible under the TEN-E Regulation since 2013.
The PCI status enabled GAZ-SYSTEM to receive EU funding from the CEF Energy instrument for the investment projects completed in 2022 such as Baltic Pipe and Poland-Lithuania and Poland-Slovakia interconnectors.
There is one more pending investment project in the 5th PCI list - the FSRU project in Gdańsk, which - once completed - will increase the security of gas supply to Central Europe and thus enable phasing down natural gas imports from Russia in pursuance of the EU energy policy priorities adopted in response to Russia's invasion of Ukraine. The funding granted to all these projects amounts to EUR 520 million.
The analyses carried out at the European level have also indicated that the company's investment projects contribute to the reduction of CO2 emissions in Poland and the entire region, as well as foster closer integration of natural gas, electricity and heating industry, which will enhance the utilisation of the potential offered by various branches of economy, in accordance with the prevailing social and economic conditions and requirements.
Additional information about the PCI process is available on the European Commission website.
