Released May 19, 2022 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) is proposing to spend an extra 210 billion euro (US$220 billion) over the next five years on a plan to rapidly reduce dependence on Russian fossil fuels and fast forward the region's adoption of green energy.
It will take planned spending, between grants and loans, to almost 300 billion euro (US$316 billion). The massive investment will fund REPowerEU, a far-reaching plan revealed in March to allow Europe to cut Russia out of its energy mix by quickly reducing its reliance on gas and oil imports. The European Union (EU) plan is a response to Russia's invasion of Ukraine in February and its subsequent threats to cut European gas supplies and attempts to force EU nations to pay for supplies in Russian rubles in order to prop up the currency. Europe relies on imports for 90% of its gas consumption, with Russia providing around 45% of those imports, alongside 25% of oil imports and 45% of coal imports. Since then, a ban on coal imports will come into force this summer and Europe expects to have replaced Russian oil imports by the end of the year. It is also aiming to reduce its Russian gas reliance by two-thirds by the end of the year. For additional information, see March 16, 2022, article--Europe Plans to Cut Russia From Energy Mix.
The Commission said that there was "a double urgency" to transform Europe's energy system: ending the EU's dependence on Russian fossil fuels, "which are used as an economic and political weapon and cost European taxpayers nearly 100 billion euro (US$105 billion) per year, and tackling the climate crisis."
Launching the funding plan, Commission president Ursula von der Leyen said: "For almost three months now, Russia has been waging a brutal war against Ukraine. And it threatens all those that support Ukraine in its legitimate defense. Putin's war poses fundamental challenges to our Union. Thus, today's proposals in the College of Commissioners are addressing our energy security of supply, defense and our neighbor Ukraine. Putin's war is disrupting the global energy market. It shows how dependent we are on imported fossil fuels. And how vulnerable we are to relying on Russia for importing our fossil fuels. We must now reduce as rapidly as possible our reliance on Russia in energy. We can."
The additional funding will be divided across a wide range of energy areas with the bulk--113 billion euro (US$119 billion)--going to renewables. This includes 27 billion euro (US$28 billion) for the creation of a hydrogen infrastructure by 2030. Earlier this week Industrial Info reported that the EC had committed to boosting the production of hydrogen via electrolysis tenfold throughout the EU in the next three years. This would allow the region to produce 10 million tons of renewable hydrogen per year by 2030. For additional information, see May 17, 2022, article - European Commission Promises Tenfold Boost in Clean Hydrogen. Industrial Info is tracking more than 550 European projects across all aspects of hydrogen production, worth US$47 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for related reports.
The EC plans to spend 10 billion (US$11 billion) to create new gas infrastructure, split across existing and new pipelines as well as support for newer facilities needed for the importation, storage and transportation of liquefied natural gas (LNG). Other areas getting extra financing include biomethane production, energy efficiency, grid infrastructure and oil security.
"We have already embarked on a transformation of our energy system to become climate neutral--our famous European Green Deal," said von der Leyen. "And this was already ambitious. But today, we are taking our ambition to yet another level to make sure that we become independent from Russian fossil fuels as quickly as possible. This is REPowerEU. REPowerEU will help us to save more energy, accelerate the phasing out of fossil fuels and kick-start investments on a new scale. This will be speed-charging for our European Green Deal."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
It will take planned spending, between grants and loans, to almost 300 billion euro (US$316 billion). The massive investment will fund REPowerEU, a far-reaching plan revealed in March to allow Europe to cut Russia out of its energy mix by quickly reducing its reliance on gas and oil imports. The European Union (EU) plan is a response to Russia's invasion of Ukraine in February and its subsequent threats to cut European gas supplies and attempts to force EU nations to pay for supplies in Russian rubles in order to prop up the currency. Europe relies on imports for 90% of its gas consumption, with Russia providing around 45% of those imports, alongside 25% of oil imports and 45% of coal imports. Since then, a ban on coal imports will come into force this summer and Europe expects to have replaced Russian oil imports by the end of the year. It is also aiming to reduce its Russian gas reliance by two-thirds by the end of the year. For additional information, see March 16, 2022, article--Europe Plans to Cut Russia From Energy Mix.
The Commission said that there was "a double urgency" to transform Europe's energy system: ending the EU's dependence on Russian fossil fuels, "which are used as an economic and political weapon and cost European taxpayers nearly 100 billion euro (US$105 billion) per year, and tackling the climate crisis."
Launching the funding plan, Commission president Ursula von der Leyen said: "For almost three months now, Russia has been waging a brutal war against Ukraine. And it threatens all those that support Ukraine in its legitimate defense. Putin's war poses fundamental challenges to our Union. Thus, today's proposals in the College of Commissioners are addressing our energy security of supply, defense and our neighbor Ukraine. Putin's war is disrupting the global energy market. It shows how dependent we are on imported fossil fuels. And how vulnerable we are to relying on Russia for importing our fossil fuels. We must now reduce as rapidly as possible our reliance on Russia in energy. We can."
The additional funding will be divided across a wide range of energy areas with the bulk--113 billion euro (US$119 billion)--going to renewables. This includes 27 billion euro (US$28 billion) for the creation of a hydrogen infrastructure by 2030. Earlier this week Industrial Info reported that the EC had committed to boosting the production of hydrogen via electrolysis tenfold throughout the EU in the next three years. This would allow the region to produce 10 million tons of renewable hydrogen per year by 2030. For additional information, see May 17, 2022, article - European Commission Promises Tenfold Boost in Clean Hydrogen. Industrial Info is tracking more than 550 European projects across all aspects of hydrogen production, worth US$47 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for related reports.
The EC plans to spend 10 billion (US$11 billion) to create new gas infrastructure, split across existing and new pipelines as well as support for newer facilities needed for the importation, storage and transportation of liquefied natural gas (LNG). Other areas getting extra financing include biomethane production, energy efficiency, grid infrastructure and oil security.
"We have already embarked on a transformation of our energy system to become climate neutral--our famous European Green Deal," said von der Leyen. "And this was already ambitious. But today, we are taking our ambition to yet another level to make sure that we become independent from Russian fossil fuels as quickly as possible. This is REPowerEU. REPowerEU will help us to save more energy, accelerate the phasing out of fossil fuels and kick-start investments on a new scale. This will be speed-charging for our European Green Deal."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
