BAKU: The Trans Adriatic Pipeline (TAP) consortium is working on the development of the concepts for future expansion cases to be based on electrically driven compressors, Luca Schieppati, TAP managing director, said in an exclusive interview with Trend on the occasion of the Baku Energy Week to be held from June 4 through June 6. 'TAP's initial capacity can be expanded in steps to reach at least 20 bcm per year, with future expansions achieved through the addition of new compressor units at the existing stations and the installation of new fully electrified compressor stations. TAP's expansion capacity is offered through regular market tests in an open, transparent and non-discriminatory way,' he said. Schieppati noted that the first level of expansion will add an additional 1.2 bcm/a to TAP's long-term capacity, sets the stage for a potential full expansion, which could significantly enhance long-term energy security. 'Our 2023 Market Test is currently in progress, serving as a pathway towards achieving full or further expansion scenarios. TAP, together with SRG and DESFA, is planning to organize the binding phase of the 2023 Market Test in July 2025. We are optimistic for the results, considering the possibility of providing additional capacity and transportation services to the liquid markets of Italy and Western Europe,' said the managing director. Schieppati pointed out that the potential for further expansion and the level of such an expansion will be determined by Market Test results. 'To date, TAP has progressed and continues to develop work to prepare to meet the anticipated market demands. For instance, we are working on the conceptual design of Compressors Stations for various expansion scenarios. We are also working on the development of the concepts for future expansion cases to be based on electrically driven compressors,' he explained. He noted that the 2021 Market Test was completed earlier in 2024 and it resulted in binding commitments, which will add another 1.2 bcm/a to the pipeline capa city by 31 December 2025. 'TAP is proceeding with the relevant works required for making the incremental capacity available to the market, in line with the commitments received. TAP will add one compressor unit (ca 15MW) to the existing compressor station in Kipoi (Alexandroupolis area), at the Greek border with Trkiye and upgrade the facilities there. The completion of these works will mark significant progress towards our goal of making the additional long-term capacity available by the end of 2025,' added Schieppati. Financing of TAP's expansion The binding capacity requests, received during the Market Tests must pass an Economic Viability Test (EVT) before an investment decision is made, said Schieppati. He noted that the larger the cumulative requests for incremental capacity, the more cost effective an expansion project can be expected to be, thereby increasing the likelihood for passing the economic viability test. 'Following a positive EVT result and the ensuing allocation of capacity, TAP will e valuate various financing options for the expansion works, including third party financing via IFIs and/or private banks,' added Schieppati. Decarbonization and hydrogen supply 'TAP could progressively double the pipeline's capacity which is currently 10 bcm/a. TAP's expansion capacity is offered to the market through regular Market Tests. Our potential full expansion will not only address the security of supply challenges but could also contribute to advancing the EU's decarbonization targets by facilitating the transportation of new volumes of hydrogen and other renewable gases in the future. Our ambition is to develop the asset for hydrogen transportation, initially in the form of a blend with natural gas,' he said. Schieppati noted that in 2021, an initial study on hydrogen readiness verified TAP's capability to transport hydrogen blend in the future. Having invested in developing the necessary test facilities, we are currently conducting tests on pipeline materials. 'We expect the initial results fo r the offshore pipeline towards Q3 2024. We are working closely with our shareholders, key vendors, and the industry, as the investment in facility upgrades and the percentage of hydrogen to be transported will likely be developed incrementally over time to align with hydrogen market demands and comply with related market regulations,' he added. 'As part of our commitment to decarbonization, we are dedicated to ensuring our own operations are climate neutral by 2050. In both the short and long terms, our focus is on prioritizing initiatives that have the highest impact on reducing greenhouse gas emissions, while enhancing energy efficiency measures,' he said. Schieppati noted that in 2023 TAP achieved an overall reduction of around 30 percent in greenhouse gas emissions and about 70 percent in methane emissions compared to the annual forecasts, primarily attributable to various initiatives implemented under TAP's 2022-2025 Carbon Management Plan. 'Based on studies conducted to date, over 90% of TAP's CO2 e missions emanate from the operation of our gas-powered compressors. In this context, we are considering the installation of new electro-compressors in both our existing and new stations in the event of future expansion. This includes defining the connection points to electrical grid network, grid reliability and the availability of green electrical power to meet the power requirements of the new compressors,' added TAP's managing director. Source: Trend News Agency