EU Allocates €1.25 Billion to Cross-Border Energy Projects, Advancing Green Transition

The European Commission has announced the allocation of nearly €1.25 billion in grants under the Connecting Europe Facility (CEF) to fund 41 cross-border energy infrastructure projects across the EU. This initiative, which surpasses the original budget of €850 million, is the largest funding round under the current CEF Energy programme and marks a significant milestone in Europe’s energy transition efforts.

The selected projects, recognized as Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) under the Trans-European Networks for Energy (TEN-E) policy framework, aim to enhance energy security, market integration, and decarbonization. Notably, this is the first funding round under the revised TEN-E Regulation, which now includes hydrogen and offshore electricity grid projects.

Key Projects and Funding Allocation

The Commission’s funding will support five construction projects and 36 feasibility studies, with a strong emphasis on renewable energy integration and decarbonization.

Electricity Infrastructure: €750 Million

Eight electricity grid projects, including offshore and smart grids, will receive nearly €750 million. Among them:

• Bornholm Energy Island – The largest grant (€645 million) will fund the construction of a hybrid interconnector in the Baltic Sea, linking Denmark and Germany while integrating 3 GW of offshore wind capacity.
• Danube InGrid – A €33 million grant will support a cross-border smart electricity project between Hungary and Slovakia, improving renewable energy integration and system efficiency.
• Additional studies will be funded in Belgium, Bulgaria, Denmark, France, Slovakia, and Spain.

Hydrogen Infrastructure: €250 Million

To decarbonize industry, 21 hydrogen projects across 16 EU countries will receive €250 million in grants. These projects aim to mitigate investment risks in the emerging hydrogen market and align with the EU Hydrogen Strategy. Key initiatives include:

• BarMar-H2med – A cross-border hydrogen corridor between Spain and France.
• Hydrogen backbone projects – Infrastructure developments in Italy, Portugal, and Spain.
• Baltic hydrogen corridors – Transport routes spanning Estonia, Latvia, Lithuania, and Poland.

CO2 Infrastructure: €250 Million

Nine feasibility studies and three carbon capture and storage (CCS) projects will share €250 million in funding to support the EU’s Net Zero Industry Act, which aims to achieve 50 million tonnes of CO2 injection capacity by 2030.

• Prinos Storage Facility (Greece): €120 million – The first CCS value chain in Southeastern Europe.
• North Sea L10 CO2 Storage (Netherlands): €55 million – A major offshore CO2 storage facility.
• Norne CO2 Facility (Denmark): €12 million – Supporting the development of carbon sequestration infrastructure.

Next Steps

The funding decision follows a positive vote by EU Member States on January 28, 2025, after the Commission’s evaluation of applications. The European Climate, Infrastructure and Environment Executive Agency (CINEA) will now finalize grant agreements with beneficiaries.

The next CEF Energy call for proposals is expected in 2025, further accelerating Europe’s green transition and energy security.