The EU is rolling out a fresh round of funding for major energy infrastructure projects, including hydrogen and carbon capture, allocating up to €600 million ($660 million) from its budget to strengthen cross-border connections. The European Commission launched the initiative yesterday, aiming to support projects that enhance energy security and market integration across the region.
Dan Jørgensen, the EU’s Commissioner for Energy and Housing said: “Now, more than ever, we must intensify our investments to ensure a genuine Energy Union. This is key to power our competitiveness, ensure our energy security and bring down energy costs for all. Constructing the crucial missing links for seamless cross-border energy flows is essential – and the Connecting Europe Facility’s contribution is instrumental in this respect.”
EU Doubles Down on Hydrogen and Carbon Capture
The funding, managed by the Climate, Infrastructure, and Environment Executive Agency (CINEA), is open to projects designated as Projects of Common Interest (PCIs)—which link energy networks across EU countries—or Projects of Mutual Interest (PMIs) that extend connections to non-EU neighbors. The goal: improve Europe’s energy supply and advance climate objectives.
The Connecting Europe Facility for Energy (CEF Energy) will oversee the allocation, with applications open until September 16, 2025. Selected projects will be announced early next year.
To guide applicants, the EU will host an online information session on May 22, 2025, outlining funding criteria and the selection process.
Projects classified as PCIs or PMIs enjoy regulatory perks, such as faster permitting and streamlined approvals, thanks to the EU’s Trans-European Network for Energy (TEN-E) Regulation. In addition to funding for planning and construction, these projects can tap into the CEF Energy program’s €5.88 billion budget ($6.43 billion), earmarked for grants through 2027.
Piecing the Puzzle Together
Earlier in February the European Union announced the projects that would take advantage of over €1.2 billion ($1.32 billion) to expand cross-border energy infrastructure marking the largest funding round yet under its Connecting Europe Facility.
The initiative backed 41 projects, including three major CO2 storage sites: Greece’s Prinos facility ($131 million), the Netherlands’ North Sea L10 site ($60 million), and Denmark’s Norne project ($13 million). These efforts form part of a broader EU push toward carbon neutrality and market integration. Nearly €750 million ($822 million) will also support electricity grid upgrades, including €645 million ($707 milllion) for Denmark’s Bornholm Energy Island.
This latest funding round underscores Brussels’ commitment to strengthening Europe’s energy grid, ensuring stability in the face of shifting supply chains and growing climate ambitions.
Read more: EU Invests $1.2B In Cross-Border Energy Infrastructure With $258M Going To CO2 Storage
