The European Commission has given its consent to a €23m grant to construct a small scale LNG terminal in Pori, Finland, in accordance with EU state aid rules.
Under the Commission's State Aid Guidelines, Member States can support energy infrastructure projects subject to certain conditions.
In addition to making sure the aid is necessary to realise the project and is limited to the minimum required, the rules also ensure that the projects do not result in undue negative effects on competition and trade.
Located in the Satakunta region on Finland's west coast, the project aims to encourage the use of LNG as fuel for ships, in place of fuel oils and liquefied petroleum gases.
The regulatory nod was given after the commission found that the project contributes to environmental protection and to the security of gas supply in Finland.
The project with a storage capacity of 30 000m³, is part of Finland's plans to create a network of small scale LNG terminals offering alternative fuel infrastructure to the maritime industry, reducing CO2 emissions.
At the same time, the LNG infrastructure will increase the security of supply in Finland, providing local industries with access to gas.
About 30% of the total investment costs will be covered by public funding and the rest will be funded by the developer and future owner of the terminal.
The move is in line with the EU's Energy Union strategy and Juncker Commission, seeking to end the energy isolation of the Baltic Sea Region, integrating it fully into the EU energy markets.