Baron Oil has signed a new agreement with Infrastrata regarding the conclusion of a grant agreement with the European Commission for its Islandmagee gas storage project in Northern Ireland.
The company has an option until March next year to convert its current loan balance into a 15% equity participation in the share capital of Infrastrata’s subsidiary.
The project is being developed in a joint venture between InfraStrata and Mutual Energy.
Andrew Hindle, chief executive of InfraStrata, said:”We are delighted by the continuing support of the European Commission’s CEF programme for the Islandmagee gas storage project. The project will be important for years to come in providing security to gas and electricity supplies on the island of Ireland, in Great Britain and the wider European networks.
“The grant support is available by virtue of the project’s Project of Common Interest (PCI) 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.”