1st Nov 2019 18:47
(Alliance News) - Infrastrata PLC on Friday said its Islandmagee gas storage project in Northern Ireland has not been included in the EU's fourth list of projects of common interest.
The energy infrastructure firm said it had "anticipated" this outcome and budgeted for it, with the "economic viability" of Islandmagee still "strong".
The company is still owed a EUR1.6 million final grant reclaim from the EU and expects to recieve this in the fourth quarter of 2019.
"While PCI status was meant to provide the Islandmagee project with fast-tracked permit and license processing times, this has not been universally recognised in the UK in the company's experience. Therefore, the board does not see a disadvantage to the Islandmagee project for not being included in the new PCI list," said Infrastrata.
However, the company will be withdrawing its application for further FEED studies in response t the news.
Infrastrata Chief Executive John Wood said: "The board took the view earlier this year that it was highly unlikely that the company would receive any additional financial support from the EU due to the UK voting to leave the economic and political bloc. We have already confirmed that the Islandmagee gas storage project is viable without EU intervention and, on being appointed CEO, one of my main concerns was the amount of time and funds that were being spent on chasing EU funding with no certainty. We are pleased to have this confirmation, which is in line with our predictions, and look forward to commencing the tender process more rapidly in the coming months."
Shares in Infrastrata closed down 0.8% at 0.42 pence in London on Friday.
By Anna Farley; [email protected]
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