EU invests €1.25B in cross-border energy infrastructure

The European Union (EU) is strengthening its commitment to a unified energy market by investing over €1.25 billion in key cross-border energy infrastructure projects. This funding, provided through the Connecting Europe Facility (CEF), will support 41 initiatives under the Trans-European Networks for Energy (TEN-E) framework. These include Projects of Common Interest (PCIs), enhancing energy connectivity within the EU, as well as Projects of Mutual Interest (PMIs), connecting EU countries with countries outside of the EU.

This is the largest call for proposals under the current CEF Energy programme, both in terms of applications received and funding awarded and goes beyond the call's initial indicative budget of €850 million. The investments are crucial for strengthening Europe’s energy security, integrating markets, and advancing decarbonisation efforts.

Of the total funding, nearly €750 million is allocated to eight electricity grid projects, including offshore and smart grids. The largest grant, €645 million, will fund the Bornholm Energy Island project in the Baltic Sea, a first-of-its-kind hybrid interconnector linking Denmark and Germany while integrating 3 GW of offshore wind capacity. Another €33 million will support Danube InGrid, a cross-border smart electricity project between Hungary and Slovakia that will integrate renewable energy and more efficiently balance the system. The other 6 projects, located in Belgium, Bulgaria, Denmark, France, Slovakia, and Spain, will receive grants for support studies.

Furthermore, €250 million will be directed toward CO? infrastructure, supporting three construction projects and nine preparatory studies. The Prinos storage facility in Northern Greece will receive nearly €120 million, contributing to the first carbon capture and storage value chain in the South-Eastern Mediterranean. A second grant, for works worth €55 million, is destined for construction works of the North Sea L10 CO? storage facility on the Dutch continental shelf. This project will enhance the Netherlands’ ability to store captured carbon deep beneath the seabed, significantly contributing to the country’s emission reduction targets, bolstering the Netherlands’ carbon storage capacity. A third grant of just below €12 million will be awarded to the Norne CO2 facility in Denmark, supporting the country’s carbon neutrality goals.

The Commission will also provide over €250 million in grants for 21 hydrogen infrastructure development studies. These funds will help mitigate investment risks in the emerging hydrogen market, complementing the EU’s Hydrogen and Decarbonised Gas Market Package, which establishes regulations for hydrogen infrastructure and the natural gas market.

This funding decision follows the 2024 CEF Energy call, with formal adoption of the awards expected in the coming weeks. The next CEF Energy call for proposals is scheduled for 2025.?

B2EU continues to closely monitor EU funding initiatives. Follow our page to stay up to date with the latest news.