However, the European Commission recently threw a spanner in the works by refusing to fund the pipeline under the Connecting Europe Facility (CEF) scheme.

The EU official told Lovin Malta that the current priority of CEF funding is for projects in line with the European Green Deal, which aims to make all EU member states carbon neutral by 2050.

Moreover, CEF funding applications are assessed against criteria, including the “extent of the positive externalities provided by the Action and the impact of the action on solidarity”.

What this legal jargon means in practice is that the project must relate to macro-regional security of supply, solidarity between member states, or technological innovation.

An LNG pipeline that would only benefit Malta, therefore, doesn’t qualify, while its hydrogen-ready aspect wasn’t deemed innovative enough because the technology is already available on the market.

Moreover, the EC wasn’t convinced that Malta had explained its rationale behind its proposed switch from an existing LNG terminal to pipeline gas in “sufficient detail”.

“The evaluation of the proposed pipeline concluded that there was not sufficient evidence provided regarding what extent and as of when the pipeline would be used for the transport of renewable hydrogen,” the official said.

“In the absence of clear and robust evidence that the pipeline will in fact be used for transporting renewable and low-carbon hydrogen, there is a significant risk of ‘green washing’ which would result in stranded assets and not contribute to our climate objectives.”

The EC official also said Malta’s application failed to demonstrate its priority and urgency, arguing that its electricity interconnector with Italy and LNG terminal means the island can no longer be considered energy isolated. 

Finally, they said that while Malta’s National Energy and Climate Plan refers to the gas interconnection with Italy in the context of the diversifications of sources and routes, the plan does not consider alternative energy supply solutions to the construction of a new gas pipeline and long-term decarbonisation goals do not appear to have been fully considered. 

Asked what advice it would give Malta to be more successful in its funding request next time around, the EC official urged Malta to look into offshore renewable energy projects.

Referring to its recent strategy on offshore wind farms and study on the offshore potential in the Mediterranean, they said Malta may explore opportunities to identify cross-border renewable projects which may be eligible for support under the new CEF window.

Energy Minister Miriam Dalli has stuck by the LNG pipeline plan, pledging to look into alternative funding options.

However, since the EU funding request was rejected, she has also said she’s exploring the development of offshore wind farms with the capacity to power the whole of Gozo. The Nationalist Party has also come out in favour of offshore wind farms.

What do make of Malta’s current energy plans?