EIB backs Spanish gas storage project

The Castor Project is an underground natural gas storage facility on the east coast of Spain.
The Castor Project is an underground natural gas storage facility on the east coast of Spain. Photo credit: Castor Project
The Castor Project is an underground natural gas storage facility on the east coast of Spain.

Castor is an underground natural gas storage facility on the east coast of Spain. Photo credit: Castor Project

The European Investment Bank (EIB) is putting €500m into an underground storage project that will be able to store up to 30% of the gas used daily in Spain. The backing for the Castor project, which is being developed by Spain’s ACS Group and Dundee Energy of Canada for the Spanish Ministry of Industry, is the first transaction under the EIB’s Project Bond Credit Enhancement initiative.

A €1.4bn bond issue for the Castor project was supported by a €200m liquidity line under the Project Bond Credit Enhancement Initiative, which allowed the project to achieve a credit rating more attractive to investors. The EIB will also purchase €300m of the bonds as an anchor investor. The issue was placed with a wide range of institutions from across Europe.

Although scarcely the kind of project that is likely to further the cause of the renewable industry in the country, it is at least welcome titbit of news for a nation that recently put the kibosh on residential energy storage with an outrageous ‘toll’ for self-produced solar power.

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