LONDON (Alliance News) - Petroleum exploration and gas storage company InfraStrata PLC on Thursday said it has signed a new European Union grant to receive up to EUR4.0 million for its Islandmagee gas storage project in Northern Ireland.
The project is being developed in a joint venture between InfraStrata, which holds a 65% stake in the project, and local energy infrastructure company Mutual Energy Ltd, with a 35% stake.
The grant agreement has been concluded under the Connecting Europe Facility for 50% of the costs associated with the Front End Engineering & Design for the Islandmagee project. This means the grant is for up to EUR4.0 million.
InfraStrata said it was working with Mutual Energy to secure new investors who will take the project through to a final investment decision stage, which is targetted for 2017.
As previously stated, InfraStrata has sufficient cash resources to cover its anticipated project management and administrative expenditure to the end of December 2016, the company said.
"The grant support is available by virtue of the project's Project of Common Interest status afforded by the European Union and recognising the importance of the project to European energy security. In the context of the island of Ireland, the project, as well as providing security of gas supplies, will support gas-fired power generation back-up for the roll-out of increased intermittent renewable power generation across the island and thereby help the UK and Ireland meet their carbon reduction targets," Chief Executive Andrew Hindle said.
"The company considers that it is premature at this time to make any statement on any longer term impact on the project's Project of Common Interest status in the context of the UK referendum result on June 23 and we will continue to engage with the European Commission on the progression of the FEED programme and the project's development as before," Hindle added.
Shares in InfraStrata were untraded on Thursday, having last traded at 1.10 pence.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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