Release date: 12 January 2021
Promoter – Financial Intermediary
HYDROGENE DE FRANCE SAS,MERIDIAM EI SAS,SA DE LA RAFFINERIE DES ANTILLESLocation
Description
Financing of the construction of a 50 MWp photovoltaic (PV) plant with a hybrid storage system with batteries and hydrogen in French Guiana.
Additionality and Impact
The present project concerns the implementation and operation of a PV with storage in French Guyane. It is a first commercial demonstration of a hybrid battery and hydrogen based energy storage system, which constitutes a technical solution for the generation of dispatchable renewable energy in isolated regions. Through this commercial demonstration of the concept, the project will enable the development of future such projects at larger scale. In future applications, such projects can be designed to provide also additional services such as renewable hydrogen for transport or industrial applications, in addition to the provision of dispatchable renewable energy (e.g. multipurpose renewable hydrogen hubs).
The project entails significant contribution to key EU policies such as (i) energy and climate due to the generation of dispatchable renewable energy, (ii) support on less developed regions due to its context and (iii) energy innovation due to the use of novel energy storage system.
The project has the potential to help address multiple market failures (reduction of negative externalities, public goods, incomplete markets) and leads to good economic profitability and benefits to society.
The EIB contributes to the project, both technically with targeted inputs on social, and environmental matters, and financially, effectively crowding in additional lenders, which would gain key expertise for other, future investments in technologies that are key for the decarbonisation of the economy and have great strategic and competitive value. in addition, the repayment of the financing is adapted to the cashflow generation of the borrower.
Objectives
The project will demonstrate the application of an innovative hybrid system comprising of batteries and hydrogen for the supply of dispatchable renewable energy. This solution is targeting, as primary markets, islands and other non-interconnected regions where the energy supply is based on expensive fossil fuel generation. The project will contribute to the EIB's priority objectives for energy sector lending related to renewable energy sources and transversal objectives of climate action as well as social cohesion.
Comments
EIB loan proposal of up to EUR 40 million.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 25 million
Total cost (Approximate amount)
EUR 157 million
Environmental aspects
The project falls in annex II of the EIA directive. The project also falls under the provisions of the Industrial Emissions Directive and the Seveso Directive (lower-tier) due to the hydrogen component and the Water Framework Directive due to the rainwater discharge and the discharge of the water produced in the fuel cells as a by-product. The project was subject to an environmental impact assessment (EIA) process under the provisions of the French Environmental Code (Code de l'Environment), the Water Law (Loi de l'eau) and the Seveso and Industrial Emissions directives. The project was granted the environmental permit on November 2019. The EIA and the social impacts will be assessed during appraisal.
Procurement
The Promoters have been assessed by the EIB as being private companies not subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the Promoters are after all subject to EU public procurement legislation, Directive 2014/25/EU, then the Bank would require the Promoters to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation Directive 2014/25/EU, as well as Directive 92/13/EEC or Directive 89/665/EEC, as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.
Status
Signed - 29/09/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).