The European Commission has formally adopted an updated list of 235 cross-border energy infrastructure projects under the labels Projects of Common Interest (PCI) and Projects of Mutual Interest (PMI). This new selection grants privileged access to the Connecting Europe Facility (CEF) and sets the structural roadmap for the EU’s energy network through 2040.
Electricity, hydrogen and CO₂ take priority
The list includes 113 projects related to electricity—such as offshore hubs and smart grids—100 hydrogen projects covering transport infrastructure, electrolysers and storage, and 17 projects for CO₂ transport and sequestration. Two legacy gas projects for Malta and Cyprus are also maintained. These strategic infrastructures are estimated to cost nearly €1.5tn over the 2024–2040 period.
The PCI or PMI status is now mandatory to apply for CEF-Energy tenders from 2026 onwards. This designation enables up to 50% EU co-financing on eligible expenses, along with a harmonised administrative process including a single-entry point and a maximum 3.5-year permit review timeframe.
Corridor expansion and extraterritorial logic
The Projects of Mutual Interest, involving at least one third country, include key corridors to Algeria, the Caucasus and the Eastern Mediterranean. The Black Sea Energy project, linking Azerbaijan to Romania via Georgia and the Black Sea, is one of them. It complements the SoutH2 hydrogen corridor from Algeria to Germany via Italy and Austria, and the EastMed gas pipeline from Israel to Greece. These infrastructures reshape the EU’s supply routes while reducing dependence on Russian imports.
The new legal framework is based on Regulation (EU) 2022/869, which excludes new hydrocarbon projects, except those that can be repurposed for hydrogen. This approach allows cost-sharing within national regulatory asset bases (RAB), enabling network operators to secure long-term returns under regulated revenue frameworks.
A high-stakes bet on hydrogen
The selection of 100 hydrogen-related projects represents an estimated capital deployment of around €80bn, excluding hydrogen production costs. Most projects concern transmission (49) and electrolysis (21), but also include storage and import/reconversion terminals. This scale raises concerns about stranded assets if industrial demand does not materialise fast enough.
Critics warn of “hydrogen-washing” risks, as some “hydrogen-ready” infrastructures may continue transporting fossil gas. The market’s low maturity, regulatory uncertainties and geographic concentration of projects reinforce doubts over the profitability and equitable distribution of these investments.
Energy markets, compliance and strategic redeployment
In the medium term, deeper electricity market integration through interconnectors is expected to smooth wholesale price disparities, reduce renewable curtailment, and optimise flexible network use. For industrial players, access to a PCI-labelled CO₂ network is essential to secure injectable volumes under long-term contracts.
The PCI/PMI structure also enhances the traceability of energy flows—origin of gas/H₂ molecules, CO₂ source, carbon content—an increasingly important asset amid EU and extraterritorial sanctions regimes. Southern, Caucasus and Mediterranean corridors gain legal and financial attractiveness, especially for institutional investors and operators bound by Office of Foreign Assets Control (OFAC) regulations.
Corporate and national implications
Gas and electricity transmission system operators (TSOs) such as Snam, TenneT, Terna or GRTgaz see this designation as a regulated growth opportunity, extending their asset bases. CO₂ hub developers (Prinos Apollo, Callisto) benefit from institutional endorsement, facilitating commercial agreements with emitters.
Some Member States concentrate the most strategic projects, notably Germany, Italy, the Netherlands and Romania. Conversely, several Central and Eastern European countries risk being relegated to transit zones unless they introduce targeted strategies for upcoming PCI calls.
