Energy news

Distribution of carbon dioxide and hydrogen via dedicated grids on the horizon in Flanders

The Flemish government has approved a preliminary draft decree on the regulatory framework for hydrogen distribution and for the transport of carbon dioxide via pipelines on the territory of the Flemish Region. The latter is specifically important for Carbon Capture, Utilisation, and Storage (CCUS), a technique that will play a role in the decarbonisation of industry. The preliminary draft includes provisions around transport safety aspects, rules around inspections, and monitoring and reporting obligations.

Link to decision on hydrogen distribution and decision on carbon dioxide transport

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Offshore wind farm in the Princes Elisabeth Zone

The Federal Council of Ministers has approved a draft royal decree around the tender concession auction for an offshore wind farm in the North Sea. A first concession of 700 MW in the Princes Elisabeth zone will be launched by the end of 2024. A "strike price" of maximum 95€/MWh was set; bids above this limit will not be considered. The support ceiling for future offshore was set at 80.000 hours over 20 years. If the wind turbines run more, they will not be subsidised for this additional production.

In addition, the Council of Ministers approved a draft royal decree granting a domain concession for the construction and operation of electricity transmission facilities in the Princess Elisabeth Zone to nv Elia Asset. Specifically, this application concerns the construction of an artificial island on which all AC (alternating current) and DC (direct current) electrical infrastructure will be located, as well as the functionalities required to set up the site and build the island. The current planning of the Modular Offshore Grid (MOG II) envisages the placement of the caissons in 2024 and 2025, with the placement of 8 to 12 caissons in 2024. The electrical infrastructure will be placed after the works on the island itself, from the third quarter of 2026.

Link to the news

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EU Commission approves €4 billion German State aid to help industries decarbonise production processes

The European Commission has approved, under EU State aid rules, a €4 billion German scheme made available in part through the Recovery and Resilience Facility (‘RRF') to help companies decarbonise their industrial production processes. The beneficiaries of the measures will be companies active in sectors subject to the EU Emission Trading System (ETS), such as the chemistry, metal, glass or paper sectors. In order to be eligible, projects will need to achieve a 60% emission reduction in 3 years and a 90% emission reduction in 15 years compared to the best available conventional technologies based on the ETS benchmarks. The projects that will benefit from the aid will be selected through an open competitive bidding process and will be ranked on the basis two criteria: (i) the lowest aid amount requested per ton of carbon dioxide (CO2) emissions avoided (i.e. the primary criterion), and (ii) the speed at which the projects can achieve significant CO2 emission reductions.

For more information, see website European Commission.

In addition, the German government received a green light from the European Commission for a support package of 1,3 billion euros for 2 DRI projects of multinational steelmaker ArcelorMittal. The package is substantially higher than the support offered by Belgium (280 million for the Ghent site) and France (850 million for the Dunkirk site).

Link to the news