EMEA News
EC Backs Finnish Plan for €28 Million in Aid for LNG Bunker Terminal
The European Commission (EC) Friday announced that it has approved Finnish plans to grant €28 million ($31.5 million) for the construction of a small scale liquefied natural gas (LNG) terminal on the country's South-East coast at Hamina, confirming that the plans are in accordance with European Union (EU) state aid rules.
The project is said to be a part of Finland's plans to create a series of small-scale LNG terminal infrastructure to provide bunkering stations for vessels, diversify the country's sources of gas supply, and reduce carbon dioxide emissions.
"The Hamina LNG terminal is one of several planned in Finland. These small scale LNG terminals will provide a new source of cleaner fuel for the maritime industry and diversify Finland's gas supply sources," said Margrethe Vestager, EC Commissioner.
"It is a good example of EU state aid rules encouraging sound public investment and helping the EU reach its energy security and environmental goals."
The Hamina LNG terminal is expected to support the port's development of infrastructure for alternative fuels, which is part of the trans-European transport network (TEN-T).
"The project will bring about a significant reduction in carbon dioxide emissions by providing cleaner fuel for transport," stated the EC.
The EC says that the €27,660,000 in public funding will account for 30 percent of the total investment costs, while the rest of the cost will be covered by both the developer and future terminal owner.
In the announcement, the commission also stated that the operator of the terminal be responsible to provide access to "interested users at a regulated price," ensuring that financial assistance is limited to the minimum necessary to trigger the investment, and to make sure that alterations to competition and trade are minimised.
In September, Ship & Bunker reported that the EU had granted its approval to Finnish government plans to provide €23.44 million ($26.11 million) in funding for an €81 million ($90.13 million) project to develop a LNG bunkering terminal on Finland's west coast at Pori.
