ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)187
Vol.1977/0075

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)187 final.
Brussels ,25May1977*
«
f
»!
M
i
PROPOSAL FORACOUNCIL REGULATION (EEC)
onthegranting offinancial aidstodemonstrate projects
inthefieldofenergy-saving
PROPOSAL FORACOUNCIL REGULATION (ESC)
onthegranting offinancial supportforprojects toexploit
alternative energysources
(submitted totheCouncilbytheCommission )
CCM(77)187final.

COMMISSION
OPTHE
EUROPEAN COMMUNITIES
COM (77)187 final
ri
PROPOSAL FORACOUNCIL REGULATION (EEC )
onthegranting offinancial aids todemonstrate projects
inthefield ofenergy-saving

FINANCIAL ASSISTANCE FROMTHEEUROPEAN COMMUNITY
TOPROMOTEDEMONSTRATION PROJECTSINTHEFIELDOFENERGY-SAVING
I.'THEOBJECTIVES OFTHEPROPOSED SCHEME
1.'Initscommunication totheCouncilofthe24February1977(1),
theCommission tooktheview,amongstotherproposals,thatthe
Communityshouldassistinthefinancingofselecteddemonstration
projectstopromoteenergysaving.Inthiscommunication ,theCommission
describesindetailtheschemeitnowsubmitstothe.;Councilfor
adoption.
2.Demonstration projectsareintendedtoreduceuncertainty about
thecommercial andeconomicviabilityofenergysavingtechniques which
areeithernewlydevelopedorwhichhaveremainedunusedbecauseofsuch
uncertainties .Generally,thismeansthatitisintendedtodemonstrate
thecommercialviabilityofenergysavingtechniques bothtothe
manufacturers ofplant,equipment,andappliances andtotheirpotential
customers.Inafewcaseshowever,demonstration projectsmaybejustified
bywiderconsiderations ,takingintoaccounttheeconomicbenefitsto
societyasawholeofanintroduction ofthetechniques inquestion.
3.Uncertainties canbeoftwokinds.Foranewlydevelopedtechnique
whichisnotprovenonanindustrial scale,therewillvbeuncertainties
aboutthetechnical andcostimplications ofitslarge-scale application .
Forbothnewly-developed andexistingtechniques therewillalsobea
lackoffamiliarity onthepartofpotentialcustomersoruserswhich
makesitverydifficultforthemanufacturer ofequipmentandappliances,
orthesupplierofservices,toevaluatethepotentialmarket,andwhich
maydiscourage themfrominvestinginaparticular technique.Projects
canbeassistedwhichareinhibitedbyeitherofthesetwokindsof
uncertainty .
4.Inshort,demonstration projectshaveastheirobjectivethebringing
intothemarketplaceofenergysavingtechniques.Whi.letheydiffer
thereforefromresearchanddevelopment programmes,whoseobjectiveis
(1)C0M(77)39final"An'intensification oftheCommunity's' programmefor
energysaving".

-2-
theconception anddesignoftechnologies ,theyareanaturalcomplement
tothem.Theschemefordemonstration projects intheenergysavingfield
musttherefore bemanagedincloseconjunction withnational andCommunity
research anddevelopment programmes inthisfield.
II.THESCOPEOFTHEPROPOSED SCHEME
5.'In'itscommunication totheCouncilofthe24thFebruary 1977,
theCommission gavethefollowing examples ofpossible demonstration
projects :
(r)heatpumps,
(n)heatrecovery ,.
(nr)thecombined production ofheatandpower,
(i.v)energystorage,
(v)selectedprojects forreducing wasteinindustry,
(vi)lowenergyhouses.
6.:Projects todemonstrate thecombined production ofheatandpower
willtypically involve amuchlargerscaleoffinancial assistance than
otherprojects,andaretherefore worthadetailed consideration .The
Commission believesthat,inthemediumterm,substantial savingsofthe
sameorderorevenmorethanthoseexpected asaresultofimproved
standards ofthermalinsulation ormoreefficient individual heating
a*
systems (2),couldbeobtained byamoregeneralintroduction ofthe
combined production ofheatandpower.Combined heatandpowerproduction
canalsohelptoreducetheenergyrequirements ofindustry forprocess
heatandtoencourage therecycling ofsuchheatwherepossible .
7.Whiletherewillbeopportunities todemonstrate newtechnologies
inthefieldofcombined heatandpower-particularly asregardsheat
(2)Proposals foraCommunity programme ofthiskindaremadeseparately
indocument COM(77)....

storageandthedistribution system-thedominantuncertainty arises
outofthelongleadtimesfordevelopment andconcernstheevaluation
ofthefuturemarket.Thisisparticularly difficult wherepotential
customers havenocomparable experience ofsuchasystem/andare
therefore reluctant tocommitthemselves toitinadvance.
8.Itistruethatcombined heatandpowerlackssponsors fora
multitude ofreasons,manyofthemquiteunrelated toitscommercial
viability .Organisational andlegalframeworks arefrequently
obstructive andsuchconstraints aredifficult toovercome whenno
enterprises existwhichareinthebusiness ofsellingcombined heat
andpower.Forthisreason,theCommission hasproposed totheCouncil
that'itadoptsarecommendation toMemberStateswhichsetsoutto
tackletheseproblems /^C0M(77)..J,buttheCommission alsobelieves
thatdemonstration projects sponsored bytheCommunity andMember
Statesareanessential furtheractiontotake,toencourage investors
toaccepttherisksinevitably imposedbythelongleadtimes
mentioned above.
9.'Community assistance neednotnecessarily involveparticipation
inthecostsoftheprojectitself.Thefeasibility studieswhich
havetobecarriedoutingreatdetailbeforesuchimportant invest­
mentsaredecidedupon,areoftenthemselves relatively complicated
andcostly.Wheretheyseemparticularly promising,theCommunity
couldconsiderhelpingtomeetthecostsofsuchfeasibility
studies.

_H_
10.Inaddition todemonstration projects inthefield ofcombined heat
andpower ,theCommission believes that theCommunity should assist each
year ,asmall number ofrelatively large industrial projects which may
involve important energy savings inindustrial processes orthelaunching
ofnewproducts orprocesses with important energy-saving characteristics ,
and ofgeneral application ,into themarket .
Finally ,there maybeexpected tobeanumber ofsmall projects involving
commercial trials ofparticular applications ofheat pumps ,methods of
heat recovery andheat storage ,orthedesign andfunctioning oflow-
energy houses .
11.Based onalevel ofactivity which would enable theCommunity
tosupport every year aminority share ofthe costs ofaround twodistrict
heating schemes ,twoapplications ofthecombined production ofheat
power inindustry ,around five orsixmajor industrial projects and a
number ofsmall projects involving commercial trials ofparticular appli -
/
cations ,theCommission proposes t'within theframework ofprovisions to "be
made forthis purpose inthegeneral "budget oftheCommunities ,toprovide
financial assistance tothedemonstration ofenergy saving tchnologies .
12.After atrial period ofthree years ,the scheme would bereviewed
todetermine ,inparticular ,future levels offinancial assistance .
III .THE MANAGEMENT OFTHE PROPOSED SCHEME
13.TheCommission would beresponsible forthedetailed management
oftheproposed scheme with thebenefit ofexpert advice from consultants
asnecessary ,butwould seek theopinion ofanadvisory committee created
forthepurpose andcomposed ofrepresentatives oftheGovernments ofthe
Member states .TheCommission would seek theopinion oftheadvisory
committee onthefollowing points inparticular :
(i)thepriorities foraction ,
(ii)thecriteria forproject evaluation ,
(iii)theterms ofthe standard contract orcontracts bywhich the
Commission would define therespective rights andobligations
oftheCommission andofthebeneficiaries ofanyfinancial
assi stance .

(iv)therelationship oftheCommunity 'sscheme tonational schemes ,if
any,forthesupport ofcomparable demonstration projects .
•(v)therelationship ofthescheme tonational andCommunitv researrh
..*• _. .
anddevelopment programmes inthesame field .
14.Apart from thegeneral indications given insection IIabove ,the
Commission will propose priorities foraction °rithebasis oftheprojects
submitted toit.
15..Thecriteria forproject evaluation will place ,particular emphasis
onthe need todetermine :
(i)the commercial oreconomic viability ofthetechnology tobe
demonstrated ,allowing forthe fact that thedemonstration
project itself maynotbecommercially viable from theoutset ,
butmust bedefensible onthebasis ofacomparison ofthe costs
andbenefits ofsupport forsociety asawhole ;
Xii )theprecise definition ofthereasons which prevent theenterprise
drawing oninternal ornational sources offinance toundertake the
project ;
(iii)thedegree towhich thetechnology issuitable forgeneral appli­
cation inalltheMember states oftheCommunity ;
(iv)aprecise definition ofthebenefits tobeobtained interms of
energy savings byageneral introduction ofthetechnology throughout
theCommunity .
16. .Theterms ofthestandard contract orcontracts tobedrawn up
bytheCommission would cover inparticular :
(i)therights ofaccess ofpersons accredited bytheCommission
tohave access toinformation andtotheproject itself ,and
therights oftheCommission with regard toanon-voting
participation inthemanagement oftheproject where the scale
ofthesupport orthenature oftheproject -should justify it;

–1>–-6-
(n)therights andobligations ofthebeneficiaries ofCommunity
assistance ,andtheprotection ofproprietary information and
patents ;
(iii)theconditions forrepayment ofthefinancial assistance given
bytheCommunity intheevent ofcommercial success ,andthe
rights oftheCommission toseek independent verification of
thedegree ofcommercial success .
(iv)the circumstances inwhich the Commission shall beentitled to
terminate itsparticipation inaproject andrequire repayment of
its financial assistance .
17.TheCommunity scheme isdesigned tocomplement andnot replace
financial assistance which maybeoffered bytheMember states themselves .
Subject however totheCommission being satisfied that this condition
isfulfilled ,theCommunity mayfind itadvantageous toparticipate with
individual Member states inappropriate cases ,inthefinancial assistance
tobegiven toademonstration project .
18.Finally ,aswasstated inparagraph 4,the scheme tosupport
demonstration projects must bemanaged inclose conjunction with national
andCommunity research anddevelopment programmes inthis field andthe
proposed advisory committee canhelp theCommission tomaintain the
necessary close liaison with national research anddevelopment programmes .

PROPOSAL KIRACOUNCIL REGULATION ONTHEGRANTING OPFINANCIAL
AIDSTODEMONSTRATION PROJECTS INTHEFIELDOFENERGY-SAVING
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropean Economic Community ,
andinparticular Article235thereof,
Havingregardtotheproposal fromtheCommission ,
HavingregardtotheOpinionoftheEuropean Parliament ,
HavingregardtotheOpinionoftheEconomic andSocialCommittee ,
Whereas,"byvirtueofArticle 2oftheTreaty,theCommunity hastheduty
topromotetheharmonious development ofeconomicactivity throughout the
Community ,acontinuous andbalanced expansion andanincreaseinstability ,
Whereasinthepresentenergysituation ,areduction intherateofincrease
inenergyconsumption willcontribute effectively totheachievement ofthese
objectives ;
Whereas,initsResolution of17September 1974concerning anewenergypolicy
strategyfortheCommunity ,theCouncilapprovedtheobjective ofa"reduction
oftherateofgrowthofinternal consumption bymeasuresforusingenergy
rationally andeconomically withoutjeopardizing social'andeconomicobjectives ";
Whereasencouraging thedemonstration ofnewtechnologies whichdirectlyresult
inenergysavingsin-thattheyimproveenergyefficiency provides ameansof
achieving thisobjective ;.......
Whereasthefirstresponsibility forfinancing suchindustries shouldbefor
industry ;whereas,inviewoftherisksandlargeinvestments impliedbysuch
activities ,particularly withtechnologies whichhavenotbeensubjected tofull-
scaletrialsorappliedcommercially ,provision shouldnevertheless bemadefor
theCommunity tosupporttheseactivities particularly wheretheymaybenefit
theCommunity asawhole;
OJNo.C153,9.7.1975.P.1.

Whereas ,mview oftheneed tolimit such support tothat which isstrictly
essential ,theCommunity must have atitsdisposal every means ofassessing ,
case "bycase ,thepossible "benefits toitofsuch projects andtheir conformity
with theobjectives ofCommunity energy policy ;
Whereas ,tothis end "beneficiaries shall assume obligations towards the
Community ,inreturn forthe "benefits received ;
Whereas theTreaty does notforesee thepowers necessary forthese purposes ;
HAS ADOPTED THIS REGULATIONS
•7
Article 1
Asprovided forinthefollowing articles ,theCommunity maygrant support
for "Community projects "ofparamount importance toimproving theefficiency
with which energy isused .
Article 2
1.Every such project shall "berelated tothecreation ofinstallations
making useonanindustrial scale ofnewequipment ,processes orproducts
forsaving energy .Every project must genuinely "bethefirst ofitskind
oapa"ble ofproviding a "benchmark andof "being anencouragement forother
installations ofthesame type intheCommunity .
*
2.Community projects shall relate inter alia tothefollowing areas :
–heat pumps
–heat recovery
–combined production ofheat andpower
–energy storage
–rationalization ofthe use ofenergy inindustry
–low-energy dwellingb .
Article 3
Responsibility forevery project shall devolve upon anatural orlegal person
constituted inaccordance with the laws inforce intheMember States ofthe
Community .

Ifthecreation ofalegal entity tocarry outaproject involves
additional costs fortheparticipating undertakings ,theproject may
becarried outwith nomore than cooperation "between natural orlegal
persons .Inthis case ,these persons shall bejointly andseverally
liable fortheobligations resulting from Community support .
Article 4
Support granted foraproject maytake theform ofCommunity participation
intheproject through financial support intheform ofgrants repayable
under certain conditions within theappropriations provided for this
purpose inthegeneral budget oftheCommunities ,and .taking into account
anyother Community ornational financial assistance totheproject .Such
support shall constitute only aminority share ofthefinancing .
Article 5
1.Every project byindividuals orundertakings intheCommunity shall be
subject toscrutiny bytheCommission .
Every project must provide information onthefollowing factors ;
–adetailed description oftheproject ,
–thefinancial situation andtechnical capabilities oftheperson or
persons responsible fortheproject ,
–thesignificance oftheproject forenergy savings intheCommunity ,
*
-thenature andextent ofthefinancial risks oftheproject andits
expected profitability ,
–thecost oftheproject andthefinancing arrangements proposed forits
implementation ,
-anyother matter which might justify thetype andextent ofthesupport
fortheproject ,from theCommission ,
–thetime scale fortheexecution oftheproject ,
-anysupport provided byorexpected from Member States fortheproject ,
–howitisproposed topublicize theresults .
TheCommission shall determine which Community projects shall begranted
financial aidandshall beassisted byanAdvisory Committee ontheManagement
ofDemonstration Projects consisting ofrepresentatives oftheMember States .

Article 6
Thebenefits granted bytheCommunity must notaffect theconditions of
competition inawayincompatible with theprinciples contained intherelevant
provisions oftheTreaty .
Article 7
1.TheCommission shall setouttherights andobligations ofeach party
inacontract with thebeneficiary orbeneficiaries ofsupport fora
Community project .
2.Theperson orpersons responsible forimplementing aproject inreceipt
ofCommunity support shall send totheCommission ,each year oratitsrequest ,
areport onthefulfilment ofcontractual obligations towards theCommission
andinparticular theprogress ofwork ontheproject andtheexpenditure
incurred onit.
3.The Commission shall have access atalltimes totheaccounts relating
totheproject .Itmayhave checks performed insitu andfrom documentary
evidence asameans ofmonitoring theperformance ofthecontract andin
particular theprogress andimplementation ofCommunity projects .
4.Where theextent offinancial support from theCommission and thesize of
theproject sowarrants ,theCommission maypropose ,when thecontract isdrawn9
up,tohave aright toparticipate inthemanagement of'theproject without a
vote .
Article 8
TheCommission shall report periodically ontheapplication ofthis Regulation
totheEuropean Parliament andtotheCouncil which shall express anopinion
onthereport .
Article 9
This Regulation shall enter into force onthedayfollowing itspublication
intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly applicable in
all Member States .

COMMISSION
OPTHE
EUROPEAN COMMUNITIES
PROPOSAL FORACOUNCIL REGULATION
onthegranting offinancial supportforprojects toexploit
alternative energysources
(Presented bytheCommission totheCouncil)

EXPLANATORY MEMORANDUM
Inorder toattain itsobjective ofreducing dependence onimported energy ,
the Community must "both seek tosave energy anddevelop theresources
available initsterritory .AstheCommission haspointed outonseveral
occasions (seeC0M(77)20 andCOM(76)508 final )this endeavour ,which
certain Member States have already begun ,requires specific action bythe
Community insome cases .This isparticularly true oftheapplication on
anindustrial orsemi-industrial scale ofnewtechnologies ,processes ,
,., ,, .technical-economicequipment orproducts which arescientifically proved ,butwhose /viability
hasnotyetbeen demonstrated . ;
2.Theattached proposal foraCouncil Regulation comes under theCouncil
energy policy programme for 1977 *Itspurpose istoenable support tobe
given fordemonstration projects orpilot plants using newtechniques or
technologies forexploiting alternative energy sources .This kind of
financial participation isameans of:
(a)encouraging andexpediting theexecution ofprojects entailing
financial ,technical ,and/ortechnological risks ;
(b)making successful installations setanexample ,thereby promoting
swifter dissemination ofthetechnology concerned .
Ofspecific concern here areprojects toexploit geothermal fields
(Annex 1),coal gasification andliquefaction projects (Annex 2)and,
forexample ,certain types ofequipment foradvanced nuclear reactors .
Anindication ofthefinancial implications fortheCommunity inthe
twoabove mentioned fields aregiven inthsAnnexes .
\
Thisproposal Isto*.seenaspartofabigger package ofCommunity
measures topromote theproduction ofalternative energy sources
(e.g.technological projects inthehydrocarbons sector ,uranium
prospecting ,Euratom loans etc.,other measures referred tom
documents COM(76)20 andCOM(76)508 final ).

PROPOSAL FORACOUNCIL REGULATION
onthegranting offinancial support forprojects toexploit
alternative energy sources
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Article 235thereof ,
Having regard totheproposal from theCommission ,
Having regard totheOpinion oftheEuropean Parliament ,
Having regard totheOpinion oftheEconomic andSocial Committee ,
Whereas ,under Article 2oftheTreaty theCommunity shall have ,asits
task topromote theharmonious development ofeconomic activities throughout
theCommunity ,acontinuous and "balanced expansion andanincrease in
stability ,
IConsidering theCouncil Resolution^of 17December 1974 and13February 1975
Iconcerning theobjectives ofCommunity energy policy andmeasures for
!achieving them :
*
Whereas ,inthepresent energy situation ,greater exploitation of
alternative energy sources intheCommunity will reduce dependence on
imported energy ,diversify energy supply andcontribute s to
theattainment ofthese objectives ;
Considering theCouncil Decision of22August 1975 adopting anenergy
research anddevelopment programme ;
Whereas financial support should begranted after theresearch stage for
exploration forandutilization ofalternative energy sources ,inview
ofthefinancial risks implied bynewtechniques andtechnologies andthe
high capital cost ofsuch projects ;
Whereas reference projects which will provide encouragement forother
projects andthus promote their execution will beeligible forsuch
support ;

Whereas ofthese proposed alternative energy sources theexploitation
ofgeothermal fields andtheconversion ofsolid fuels into hydrocarbons ,
inparticular ,offer development prospects ;
Whereas theexecution ofsuch projects "bring with itthedevelopment
inthe Community ofanindustry with therelevant skills aswell as
providing potential access toindustrial outlets ofsome substance outside
the Community ;
Whereas thegranting "bytheCommunity of "benefits envisaged must not
adversely affect theconditions ofcompetition inamanner incompatible
with theprinciples embodied intherelevant provisions oftheTreaty ;
Whereas ,inview oftheneed tolimit such support tothat which is
strictly essential ,theCommunity mast have every means ofassessing ,
case bycase ,thepossible benefits toitofsuch projects andtheir
conformity with theobjectives ofCommunity energy policy ;
Whereas ,tothis end ,beneficiaries shall assume obligations towards the
Community inreturn forthebenefits received ;
Whereas theTreaty does notprovide thepowers necessary for these purposes ;
HAS ADOPTED THIS REGULATION :
Article 1
Asprovided forinthefollowing articles ,theCommunity maygrant
support forreference projects ,known as"Community projects ",to
exploit alternative energy sources intheCommunity which constitute a
reference andhave sufficiently good economic prospects .

-3 -
Ar-ticle 2
1.Theprojects referred toinArticle 1shall have agtheir basis the
exploitation ofenergy sources using newtechniques ortechnologies
capable ofproviding areference andencouragement forother installations
ofthe same type ,
2.Community projects shall relate tothefollowing sectors inter alia :
–exploitation ofgeothermal fields ;
–conversion ofsolid fuels into hydrocarbons *•>
Article 3
Responsibility forevery project shall devolve upon anatural person or
alegal person constituted inaccordance with the laws inforce inthe
Member States oftheCommunity .
Ifthecreation ofalegal entity tocarry outaproject involves additional
costs fortheparticipating undertakings theproject maybecarried outwith
nomore than cooperation between natural orlegal persons .These persons
shall then bejointly andseverally liable for theobligations resulting
from Community support . . t ■
«•
Article 4
Support granted foraproject maytake theform ofCommunity participation
intheproject through financing intheform ofgrants ,repayable under
certain conditions ,from theappropriations provided forthis purpose in
thegeneral budget oftheCommunities ,andtaking into account anyother
Community ornational financial assistance totheproject .Such support shall
constitute only aminority share ofthefinancing .
1.Every project putupbyindividuals orundertakings intheCommunity
shall besubject toscrutiny bytheCommission .When examining each
project theCommission ,shall take into consideration inter alia thefollowing
factors :

-4- XVIl/158/77-E
–adetailed ,description oftheproject andthetime scale forits
execution ,
–thesignificance oftheproject forthereduction ofdependence on
imported energy ,diversification ofsupply andpossible energy
savings ,
–thefinancial situation andtechnical capabilities oftheperson
orpersons responsible fortheproject ,
–thecost oftheproject andthefollowing arrangements proposed for
its execution .financial
–thenature andextent ofthe/risks oftheproject anditsexpected
profitability ,
–anyother matter which might justify thetype aridextent ofthe
support proposed fortheproject "bytheCommission ,
–anysupport provided "byorexpected from Member States fortheproject ,
–how itisproposed todisseminate theresults .
2.The Commission shall determine which Community projects shall be
granted financial aidand shall beassisted inthis byAdvisory Committees
ontheManagement ofReference Projects consisting ofrepresentatives ofthe
Member States .
Article 6
Thebenefits granted bytheCommunity must notadversely affect the
conditions ofcompetition inamanner incompatible with theprinciples
embodied intherelevant provisions oftheTreaty .
Article 7
1.TheCommission shall setouttherights andobligations ofeach
party inanycontract with thebeneficiary orbeneficiaries ofsupport
foraCommunity project .
2.Theperson orpersons responsible forimplementing aproject in
receipt ofCommunity support shall send totheCommission ,each year or
atitsrequest ,areport onthefulfilment ofcontractual obligations
towards theCommission andinparticular theprogress ofwork onthe
project andtheexpenditure incurred onit.

-5-
3.TheCommission shall have access atalltimes totheaccounts relating
totheproject .Itmayhave checks performed insitu andfrom documentary
evidence asameans ofmonitoring theperformance ofthe contract andin
particular theprogress andimplementation ofCommunity projects .
4.Where theextent offinancial support from theCommission andthesize
oftheproject sowarrants theCommission maypropose ,when thecontract
isdrawn up,tohave aright toparticipate inthemanagement oftheproject
without avote .
Article 8 >'r
TheCommission shall report periodically ontheapplication ofthis
Regulation totheEuropean Parliament andtotheCouncil ,which shall
both express anopinion onthereport .
Article 9
This Regulation shall enter into force onthedayfollowing itspublication
intheOfficial Journal oftheEuropean Communities .
This Regulation shall "bebinding initsentirety anddirectly applicable
inall Member States .
/
«

USESFORGEOTHERMAL ENERGYANNEX1
1.Geothermal energymay"bedefinedastheEarth'snaturalheatenergy,most
ofthatheatbeingproduced "bytheradioactivity ofdeep-lying rocks.Apart
fromseasonalvariations ,whichonlyaffectsometensofmetersunderthe
surfacethetemperature increases withdepthbyanaverageofonedegree
per30meters;thisimpliesaflowofheatoutwards fromtheinterior .The
temperature inthecenteroftheearthprobably reachesalevelofseveral
thousands ofdegrees.
Mostofthisthermalenergyoftheearth,however,istoodiffuseto
lenditselfforcommercial exploitation .Nevertheless therearezoneswhere
theheatisconcentrated atdepthswithinreachofeconomical drilling-in
theorderofsomethousands ofmetres down.
Inthemostfavourable casesgeothermal energyisdelivered bysteamata
comparatively lowtemperature ,ofabout200°to300°C.Itisconsequently
aformofenergythatdoesnotlenditselfreadilytotransport formore
thanafewtensofkilometres .
2.Twotypesofgeothermal sourcesirepresently exploited :
a)"high-enthalpy "sources-i.e.fieldsofsteamorwater/steammixtures
attemperatures over150-200°Cjand
b)"low-enthalpy "sources-consisting chieflyofwateratlessthanthe
abovetemperature .
Inbothcases,adegreeofgroundpermeability permitswatertocirculate
which,depending onthegeothermal gradient ,the,succession ofpermeable
andimpermeable strata,etc.,produces deposits ofthiskind.
Afurtherpossibility ofusingthisnaturalheatisbasedonthegeothermal
contentofimpermeable "hotrocks"althoughthiscallsforverycomplex
engineering onwhichstudiesandresearch workareatpresentinprogress .
3.Fieldsofthistypereferredtoinparagraph a)canbeusedforelectricity
generation .Bytheendof1975installed generating capacitythroughout the
worldamountedto1,300MW,withapproximately 420MWinItalyand500MW
intheU.S.A.Nearly700MWofcapacity wasunderconstruction .
Fieldsofthetypedescribedinparagraph b)canbeusedchieflyfor
non-electricity purposes ;thechiefusesareforspaceheating,principally
ofdwellings ,butalsoinbuildings forindustrial ,agricultural orstock-
raisingpurposes .

TECHNICAL ANDECONOMIC ASPECTS OFTHE EXPLOITATION OPGEOTHERMAL PRODUCTION
4*Thebringing ofageothermal field into production carries with itfinancial
risks which arise from geological uncertainties ,anditcalls forheavy
investment .
There are twosuccessive phases marking such exploitation :
-pre-drilling project design andestimates !and
-tailoring ofthescheme todrilling results .
Theviability ofsuch aproject depends onthequantity ofheat that can
berecovered ;this inturn depends ontheflow from thewell ,thetemperatur
ofthefluid andthenumber ofhours' utilisation .But ,when afield isdis­
covered itisextremely difficult todetermine itspotential output ,for
itwill benecessary toestablish theprobable values ofgeological ,
hydraulic ,andthermal parameters such as:
-depth andthickness ofthedeposit ;
-temperature andchemical properties ofthegeothermal fluid ;
-permeability ofthedeposit ;and
-thedeposit 'sheat capacity (orequivalent thermal conductivity ).
Although the first two oftheabove parameters canbeestablished without an
excessive margin ofuncertainty ,serious uncertainties mayremain about
permeability andconductivity .
Notonly ,therefore ,arethecost ofdrilling anditsuncertainties highly
variable ;theinvestment called forinsuccessive stages isalso fairly
high .Furthermore ,thelead time elapsing before full development is
>*
often long andprofit intheearly stages ofexploitation maybemodest .
5.Geothermal power stations areusually built upfrom 30MWunits ,but
they maygoupto110MW.Above such capacities theturbines ought tobe
feld from alarge number ofwells ,which would make costs higher than
thebenefits deriving from theeconomy ofscale with larger turbines
sets .
Themost wide-spread types ofunit throughout theworld are :
-back-pressure turbines ,fedwith straight natural steam which isthere­
after discharged toatmosphere ;these axesmall ,readily transportable
units forbringing anewfield online swiftly ;
-condensing turbines ,also fedwith straight natural steam which isthen
1 .jed into acondenser .

-3-
Theback-pressure typehasalowspecificcapitalcost,ofapproximately
250e.u.a./kW,"butitsspecificsteamconsumption isapproximately twice
ashighasthecondensing type's(20kg/kWhnetcomparedwithlessthan
10kg/kWhnet);thelatter,"bycontrast,hasaspecificcapitalcostin
theorderof500e.u.a./kW.
6.Intheexploitation of"lowenthalpy"fields,theheatingsyestemsinstalled
areofgreaterorlessertechnical complexity according totheoutlet
temperature ofthegeothermal fluidanditssaltcontent,whichcauses
problems ofcorrosion andscaling.
Operation withsuperheated orsaturated steamposesnocorrosion problems .
Hotwaterisgenerally ladenwithsalts;consequently itpollutes the
environment andattacksmaterials .Furthermore ,thetemperature involved
donotpermitoflargedifferentials whencetheneedforsuitable heat-
exchange areas.
Thewaterisdrawnfromextraction wellsgenerally surrenders partofits
heattothe(fresh)heatingwaterinheatexchangers andisthenreinjected
intothesoilviareturnwellsjthisalsohastheeffectofkeepingthe
fieldunderpressure .Theheat-extractionsystem,then,isbasedontwin
wellsfordrawingandreinjecting ,thecostofwhichvarybetween 1and
2millione.u.a.
Promtheheatexchanges ,anddepending onwatertemperature ,theheatis
pipedtotheheatingnetworkanddistributed byradiators ,throughthefloor
orbeothermeans.Theplacingofaheatpumpinthecircuitpromotes heat
extraction andpermitsbettermatching ofthetemperature oftheheatex­
tractedtothetypeofspaceheatingandtoclim&tic conditions .
7.Thevalueoftheheatdrawnfromtheearthisobviously equivalent tothe
costoftheenergywhichitisabletosubstitute .
Inthefieldofelectricity production thespecific costarisingfromfuel
Setsunupperlimittothe'relationship betweentheinvestments inprospec­
ting,research anddrilling neededforopeningupadeposit,andthevalue
oftheavailable fluid.Judgingfromexperience gained,thecostsarrived
atarelowerthanthoseofthefuelburntinaconventional powerstation.
Inthefieldofdistrict heatingitistruethattheprovision ofgeo­
thermalenergydoesnecessitate heavierinitialinvestments thanthose
neededinthecaseofconventional boilers 5nevertheless ,afterthefirst
yearsofoperation onecanexpecttheuserstofindtheirheatingexpenses
diminished .

PROSPECTS FORGROWTHINTHEUSEOPGEOTHERMAL ENERGY "
8.Asgeological surveysandresearch nowstand,andwithout,forthetime
toeing,takingintoconsideration thepossibilities of"hotrocks",pros­
pectsforgrowthintheuseofgeothermal energyareattractive inseveral
Community countries .Intheshortterm,however,prospects are"betterin
ItalyandinPrance,wheretheexploitation ofindigenous energysources
isofparticular importance ,inviewofthesecountries *dependence on
imported energy.
9*InItalyaprogramme has"beenformulated ,chieflywiththeaimofloca­
tingnewgeothermal sourcesforelectricity generation .Phase1ofthe
research ,consisting ofgeological ,geophysical andgeochemical surveys,
2covered20000kmintheareaofthewesternPre-Appenines jofthat
26ome1500kmhavebeenselected asdisplaying promising characteristics
forthediscovery of"high-enthalpy "fields.Phase2,consisting ofthe
drilling ofexploration wells,hasbegunandsomeofthesewellshave
ledtothediscovery offourreservoirs ,varyingintheircharacteristics
butseemingexploitable .
"Low-enthalpy "deposits werealsolocatedduringbothphasesofthe
exploration programme .
Inthecourseofthe1980'sinstalled geothermal generating capacity
mightdouble,toapproximately 1000MW,andgeothermal spaceheating
mightrisetosometensofMWth.
10.InPranceallthemajorsedimentary basinscontainbodiesofground
wateratupto80°C.Low-enthalpy geothermal systemsarenowinoperation
andby1985about500twin-well systemsmightbecommissioned ,halfofthem
intheParisarea.Fromthatyearonwardsgeothermal energymightthusbe
providing theequivalent of1.5milliontoeforspaceheating.
Withregardto"high-enthalpy *1deposits ,surveysandexploration todate
showthatthebestprospects arechieflytobefoundintheMassifCentral
andinFrenchoverseas territories .

-5-
11.IntheUnited Kingdom thegeothermal structures ofpossible interest are ,
according topresent knowledge ,inCornwall ,Durham ,theHampshire Basin
andScotland .These zones comprise hotrocks ofbetween 100and200° C,
from which itwill bepossible todraw theenergy atlower costs than
those offossile fuels presently inuse .Arecent report onthecountry 's
geothermal potential estimated that ,inthelong term ,this source of
energy might provide theequivalent of2.8million toe .
IntheFederal Republic ofGermany themost promising sources arein .the
Rhine trough .Thehighest-temperature rocks aresituated atadepth of
about 3'000m,with temperatures above 200° C.
Imtheother Community countries ,anumber ofprospection andresearch ,
activities areunder way ,with thechief objective ofobtaining knowledge
about thegeothermal potential hidden underground .
12.Also anumber ofresearch institutes invarious Community countries are
engaged inprojects relating totheuse ofthis sources ofenergy .
Under theCouncil Decision of22August 1975 adopting anenergy research
anddevelopment programme (l),theCommission ,which isresponsible for
seeing that theprogramme iscarried out ,theprojects being chiefly on
ashared-cost basis , letthefirst batch ofcontracts ofresearch
projects onthefollowing subjects (Annex ):
a)theacquisition andcollation ofnewandexisting geothermal data ;
work tocollate thedata available ontheCommunity 'sgeothermal
potential andacquire data atpresent lacking toenable itsgeothermal
potential tobebetter estimated } »
b)improvement ofexploration methods ;research toperfect methods of
exploring specifically forgeothermal fields andrelated methods of
interpretation ;
c)sources ofhotwater (low-enthalpy );theoretical studies using
mathematical models andexperimental work ontheuseofgeothermal
waters (behaviour ofgeothermal reservoirs ,feasibility andviability
ofexploitation );
d)steam sources (high-enthalpy )andhotrocks ;research anddevelopment
toimprove theexploitation ofgeothermal fields producing steam and
(1)OJNoL 231,2.9.1975

-6-
also work onthepossibility ofextracting heat from dryrocks ,parti­
cularly "byfracturation tomake them permeable .
Theprogramme will becarried outintwostages extending over four years :
from 1July 1975 "to31December 1976 andfrom 1January 1977 to30June 1979 *
TheCommission isassisted intheexecution oftheprogramme byanAdvisory
Committee setupforthepurpose .

|DESIRABILITY OFPROMOTING GROWTH INTHEUSEOFGEOTHERMAL ENERGY j
13.While ,onanear time span (1980-85 ),wemust take asober view ofthe
contribution that geothermal energy canmake totheCommunity' stotal
energy balance ,inthelonger term itscontribution might befarfrom
negligible ,especially ifresearch directed towards theexploitation of
hotrocks leads tocommercial applications .And ,although wemust realise
that geothermal energy will notsolve theCommunity 'senergy problems ,it
will contribute tosavings onimports ofhydrocarbons andwill produce
more rational useofenergy ,ifonly fortransport reasons .Inregional
terms -andbearing inmind that thecountries where prospects arethemost
attractive sureamong those with thehighest dependence onoutside energy
sources -exploitation ofgeothermal resources' isgenuinely attractive .
144 .Itisnoteasy toproduce aquantitative estimate oftheprospects forthe
use ofgeothermal energy ,owing totheuncertainties attending thedis­
covery andbringing into production ofdeposits .Onthebasis ofsurveys ,
research andprojects now inprogress ,arough estimate ofthegeothermal
contribution tothecovering offuture energy needs nevertheless ,arrives
atseveral percent .While itisacomparatively small contribution ,inre­
lative terms ,inabsolute terms itisnevertheless notinconsiderable ,since
155oftheCommunity 'senergy consumption in1985 will beover 13million toe
which atpresent prices means asaving offoreign currency oftheorder
of1000million EUA .These figures might bemuch higher inthefuture if
research directed towards theexploitation ofhotrocks should lead to
commercial applications .
*
15.Furthermore ,anycontribution tothedevelopment ofa"geothermal energy
industry "intheCommunity mayhave favourable effects onindustry generally
andonthebalance ofpayments ,inview ofthesize ofthepotential market
outside theCommunity .Several ofthecountries inquestion ,which have
recently embarked onaccelerated geothermal exploration anddrilling pro­
grammes ,have neither theengineering skills noranadequate industrial
base toexploit such deposits .TheCommunity industry might therefore
find substantial markets .
16.Geothermal energy ,moreover ,canberegarded asoneoftheleast polluting
forms ofenergy inview ofthesuccesses achieved inreinjectionofthe

-B-
liquid ,after heat extraction ,into thereservoir from which itwasex­
tracted orinto vexy deep (over 1000m)strata attheedge ofthegeo­
thermal field .Thegaseous phase normally consists ofCOgwith traces
ofHgS.Experience inItaly andtheUSAshows that thenuisance value
isminimal .
17*Beyond theR&D stage ,onemeans ofpromoting theuseofgeothermal
energy istosupport practical projects which canserve asreferences
andtopromote thesetting-up ofindustries with thenecessary skills .
Themajor obstacles inthewayofthedevelopment ofgeothermal energy
arethehigh investment costs andthegeological uncertainties ,which
bring with them financial risks ofsome magnitv^de .
Adegree ofhesitancy when faced with anewform ofactivity ,together
with thecomparatively long period elapsing between thedecision toin­
vest andtheaccrual ofoperating revenues ,areother factors which may
slow thegrowth oftheuseofgeothermal energy .Because ofthis fact ,
private operators maynotfind great attraction inthis type ofinvest­
ments ;itismainly atpublic/^levef^ihat theinterest liesinthe
development oftheuseofthis energy source .Hence theneed tofacilitate
private investment byapublic support ,which should belimited in
duration andshould favour entry into themarket byprivate operators .

[ELEMENTS OFTHECOMMISSION PROPOSAL |
18.TheCommission proposestoemployCommunity fundsforthepurposeof
encouraging therealisation ofprojectstoexploitgeothermal resources .
Theselectedprojects Bhouldhaveacharacter thatservesasapointof
reference inthisfield,andsufficient promiseofprofitability .
19»Afull-scale geothermal projectcomprises threestages:research,explora­
tionandutilisation ofadeposit.Byresearch ,thelayershavinggeo-
thermally favourable factorsareidentified }intheexploration stage,a
numberofsamplesanddrillings areconducted andparticular studies made
toevaluatethepossibilities forcommercial exploitation ofadeposit;
intheutilisation stage,theproduction wellsarefinallydrilledand
theinvestment forcommercial exploitation ofthedepositiscarriedout.
20.Thesupportisbasedonsubsidies toberepaidundercertainconditions
andbynon-repayable subsidies ;itwillrepresent aminority onlyofthe
fundswithwhichtheprojectisfinanced.Itmaycoveratthemost40$of
thefundsinvestedduringtheexploration stage,5C$ofwhichbeingrepayable
.inthecaseofpositiveresultsand20^offundsinvestedattheutilisation
stage,thewholeofwhichwouldberepaid(l).
21.Clearlythepromoters oftheprojectmustthemselves providethefunds
neededtocovertheinvestment notcoveredbyCommunity support.Consequently
thatsupportdoesnotreplacebutratherstrengthens andencourages national
efforts .
*
22.Possibilities toobtainthesupportwouldbelimitedintime.Thesupport
maystretchoveraperiodof5yearsbeginning on1.1.1978andthereby
ensurethelogicaladvancement oftheCommunity'sresearchpolicyinthis
area,whereitwouldmarkthetransition intotheproduction stage.After
thistimelimit,theprojectscarriedoutwouldinfacthavetoserveas
areference forotherprojects,therebyfurthering theirattainment .
(l)Forinstance,inthecaseofa30MWstationrequiring approximately 3millio:
EUAduringthe"exploration "stageand15million EUAduringthe"utilisa­
tion"stage,theCommunity supportcouldamountto1.2million EUAforthefirststage,.6million EUAofwhichwouldberepaidinthecaseofpositive
results,and3million EUAforthesecondstagetoberepaidfully.

-10-
23.■Therepayable partsoftheamountswillbepaidback,beginning withthe
seoondyearofcommercial operation ofthedeposit.Thetotalamountto
berepaidwillbedividedintopaymentsstretching overamaximumperiod
of8years.Thedetailedconditions forrepayment oftherepayable amounts
willbedefinedseparately foreachproject.
2)+TheCommission proposesthatthesupportoperation shouldbecarriedout
throughtheCommunity budget.Asthechiefobjectoftheproposed support
istodevelopindigenous energysourcesandtherebytoreducetheCommunity's
external dependency inrelationtoimportedoil,thesupportwouldtake
placeundertheEECTreaty.

ΑΝΙΤΕΧ2
Subject :Gasification andliquefaction ofcoal
1.Thequestionofcoalgasification ,and.ofunderground gasification in
particular ,wasraisedatthemeetungs oftheEnergyCouncilof19October
and2iDecember 1976.Atitsmeetingof25-26November 1976,CRESTput
forwardaseriousofrecommendations withregardtoenergyresearch and
development ,including bi-ormultilateral cooperation forthegasification
andliquefaction ofcoal.
2.In1975and1976theEuropeanParliament adopted,onthebasisofreports
onthegasification andliquefaction ofcoalprepared byitsCommittee on
Energy,Research andTechnology ,resolutions which,amongotherthings,
invitedtheCommission oftheEuropean Communities topromoteresearch
anddevelopment inthesetwofields.Thisresolution wassubmitted tothe
Council.Afterhavingstudiedtheproblems withinitsservices andin
collaboration withacommittee ofexperts,theCommission expressed itself
onthesubjectonseveraloccasions ;itmadeaclearstatement inits
Medium-term Guidelines forCoal,1975-1985 *

Collaboration with theUnited States hasbeen estiblished
bilaterally with theUnited Kingdon andtheFederal Republic
ofGermany .Theinterest ^ofth$United State# )are,however ,
very different because ofthelower cost ofAmerican coal *
3*Pnthetechnical level ,theprocesses maybedivided into two
groups .Ontheonehand ,there areconventional procesgep
which have reached theindustrial stage butwhich cannot yield
therange ofproducts desired (such asSNG)andcanuseonly
certain types ofcoal )their production costs ,moreover ,are
still toohigh *Ontheother hand there areproposed newsystems
which arestill mostly atthelaboratory orsmall pilot plant
stage .These areaimed atwidening therange ofcoals that
canbeutilized andofproducts that canbeobtained -,aswell as
atreducing production costs *Theuseofnuclear reactors as
asource ofheat could beincluded intheramgeofgasification
processes that aremost economically viable .Thecombined gas
turbine andsteam turbine cycle forelectricity generation appears
promising *With regard tolead times ,itmust beemphasised that
thedevelopment ofnewprocesses onthepilot scale will take
6to8years toreach thepoint atwhich theresults obtained are
applicable ontheindustrial scale *Thetime lags anticipated
pndthetechnical problems that have still tobesolved demon­
strate theneed toavoid delay inmaking thetransition from $he
laboratory orsmall pilot stage tothesemi-industrial stage
that theCommunity mayhave newtechniques available within the
4esir$d time ).
4.Jj^cept inafew_special ,Isolated casejB ,underground gasification
Ofcoal bytraditional methods (preferably using coals ofhigh
yolatile matter content atshallow depths )hasnot,uptonowf
yielded economically useful results ,mainly because thegashas
been toolean anditsquality irregular .Incontrast ,newideas
andproposals arecurrently being given serious attention with
*view toimproving thequality andcost ofproduction ofthegas
9btained .Theprocesses inquestion will operate under pressure ,
ttgreater orlesser depths ,using boreholes from thesurface *

3.
5.Work isbeing carried out ,inthe context ofbasic scientific research ,
intheresearch centres oftheCommunity 'scoal producing countries
either with financial aid from the E.C.S.C. within the framework of
the programme "Chemical andPhysical Valorisation ofCoal "Orwith
national funding within governmental programmes .Research anddevelopment
and anumber oftests onthepilot -orsmaller scale areunder way in
thenational programmes oncoal gasification andliquefaction ,principally
intheFederal Republic ofGermany ,theUnited Kingdom andBelgium .
Furthermore ,several projects gobeyond thenational level and merit
thelaunching ofaprogramme ofaction bytheCommission .Moreover ,the
technological developments liemore within theprovince ofindustry than
inthat ofthe research centres .
6.Coal gasification andliquefaction is,inthelong term ,themost promising
means ofobtaining substitute petroleum products .This technique isof
positive interest totheCommunity not only under the difficult economic
situation and effects onthebalance ofpayments due topetroleum imports ,
theprice ofwhich threatens tobeincreased inthenear future .Aswell ,
coal gasification andliquefaction islikely toreplace petroleum pro­
duction when alessening ofgasandpetrol reserves isfelt .
These technologies canmake use either oftheCommunity 'sown
resources (theCommunity hasextensive coal reserves )orcoal imported
from Third countries .Because transport ofagasified orliquefied
product isearthan the transport ofcoal ,ademand from thewhole
Community could bemet ,even inBreas without coal resources or
liquefaction andgasification installations .
7.Inconsequence ,considering thegrowing interest inftieCommunity in
coal gasification andliquefaction ,the important technical and
economic problems that have still tobesolved ,the time needed to
achieve results that canbeapplied industrially and thereserves
ofsolid fuel that exist inthe Community ,and taking into account the
importance ofthese problems inthesphere ofenergy supply inthe
.longer term ,theCommission isofthe opinion that financial support
bytheCommission fortheconstruction andoperation intheCommunity of
pilot installations forthegasification andliquefaction ofcoal is
necessary .

GASIFICATIOïï ANDLIQUEFACTION OPCOAL
1*Gasification ofcoal
»)Techniques
–Thetechnicpies^for^gasifjring^coal arebased onknown methods .
Processes forgasifying hard coal orlignite with steam to
produce afuel gasorasynthesis gas (thehigh-pressure LljBGI
process ,theKOPPERS-TOTZEX process ,etc.)have been used
theindustrial scale over along period . '■
–Theaimofmore recent methods ,ontheother hand ,isto
produce agasfrom coal toreplace natural gas (Substitute
Natural Gas»SNG);SNGisobtained either bymethanation
ofthesynthesis gasproduced bysteam gasification (LURGI ,
SYBT^ANE ,COED-COGAS ,BIGAS ,COg-ACCEPTOR processes ,etc.)or
bygasification brought about bydirect hydro genat ion
andHY-GAS processes ).These processes are,forthemost Ejart ,
(itthelaboratory --orsmall pilot-scale stage ,arid semi .-
industjpial scale tests have still tobecarried out.
–Interesting attempts arebeing made touseheat_from high–
temperature nuclear reactors ^instead ofburning coal to
provide theheat required forthegasification process ,Sych
■»
atechnique could beused toproduce various' types of^asfpom
either hard coal orlignite ,andwould have some potential
advantages :less rapid exhaustion ofreserves ,%lower gas
price ,andafavourable impact ontheenvironment .Onthe
other hand ,there aresome technical problems -notably that
oftransferring thenuclear heat atthehigh temperatures
required forthegasification reaction (about bOO°C forlignite
and1000°C forhard coal).Theoutlook forthisgasification
technique depends mainly onthedevelopment ofnuolear reactor
technology .

s\
–Inparallel with thedevelopment oftheabove gasification
techniques ,there exist newpossibilities forutilizing thegas
produced ,particularly inconnection with combined cycles (gaBifi^rs ,
gasandsteam turbines )forelectricity generation .Such methods
should permit amore rational utilization ofcoal ,thanks totheix >
higher thermal efficiency ,andhenoe areduction inthecost pf
electricity (about 17%fora600MWpower station ).
*-Itshould bepointed outthat gasification isasuitable technology
iq,relation tptheprotection oftheenvironment because themajor
j>qrt oftheppllutants canbeeliminated from thegasbyRelatively
simple mean ?.However ,problems could arise inconnection with
tt)esupply andpurification ofwater and,incortain castes ,tjie
utilization ofthewaste productit .
b)Rawmaterials
Jnorder toputgasification into practice itisnecessary tohave
available sufficient quantities ofcoal tosupply acoal refinery .
Asaguide ,theproduction of1milliard m^ofSEG (ofthesanequality
asnatural gas)requires 1.8to2million tonnes ofhard coal or
6pillion tonnes oflignite ifconventional gasification techniques
areused .If,ontheother hand ,nuclear heat isused ,thequantities
required areestimated tobe1to1.2million tonnes ofhard coal or
4million tonnes oflignite -inother words ,anexpected saving of
Inaddition totheproblem oftheavailability 'ofthese amounts
ofcoal ,questions arise inconnection with theamount ofwater needed
foralltheprocesses .Furthermore ,itisnecessary tomanufacture
'significant quantities ofhydrogen inorder toproduce SNG.Another
prpblsm that should beborne inmind isthat ofutilizing thewaste
products that will beformed ingreater orlesser quantities ,depending
onthegasification process used .
0)Economic problems ofgasification
Thecost ofgasification depends mainly ontheprice ofthecoal usej .
These costs sureshown inthefollowing table forthegasification of
hard coal (reference year 1974 )•
f ■"I 1 "II
Priçe ofhard coal inUA/Gcal 3 4 5■ 'F II1 V"«
61■ 11"
T
Cost ofproduction ofSNG 8.85 10.30 11.70 13.15r
14,60
(UA/Gcal ) to to to to V
Conventional 9.75 11.25 12.70 14*15 15r55 -
 
™ u~ ■VaueW hert 7.60 8.45 9-30 10.15 11,00

^hecorresponding figuresforth^eproduction pfSNGfromlignite
^ixeoftheorderof8UA/Gcalforconventional gasification and
6,2Qtll/lcalforgasification bynuclearheat.Thesefigurap
Includethecostofthepretreatment necessary forlignite
{pri,ceofrawlignite:1*55UA/Gcal)•
Itshouldbenotedinthisconnection thatthqcostsofconventional
gasification canbecalculated pithsomeprecision ,thankstoth^t
experienced gainedinindustrial installations ,whileestimates
forthenewerprocesses canbeobtained onlybyextrapolating
laboratory orsemi-industrial scaleresults,withalltheuncertainty
thatthatinvolves *Thisisparticularly thecaseforgasification
bynuclearheat,wherethecostofproducing thegasdepends
strongly onboththeprofitgainedfromtheelectricity thatis
producedsimultaneously (calculated hereat0.01UA/Gcal)andthecost
ofthenuclearheat(estimatedtobebetween2.20and3*70UA/Gcal).
Itcanthusbesaidthatthecostoftransforming coalintogas
increases thepriceofthecaloriesobtained byafactorof2to3*
According tosomeestimates ,thecurrentcostsshouldbe1^higher
becauseofincreasedcapitalcoats,whilethepatioofcoalprice
togaspriceremainsmoreorle^constant.Bywayofexample,
thecurrentpriceofimportednaturalgasisCto7UA/Gcal,and
thepriceofSNGmadefropiCommunitycoal(averageprice)is
estimated %obebetween13and10UA/Gcal,depending onwhether
gasification isachievedbyconventional methodsorbypucleurhe^t.
Thefiguresquotedgiveojfilyanapproximate idi^aoftheoostu*
Oplypilotplantsonthepemi-ir)4u®trial scalecangiveprecise
answers .
Underground gasification ofcoal
Asinthecaseofgasproduction fromcoalinsurfaceinstallations ,
severalprocesses forandexperiments onunderground gasification
gobacktotheperiod1945~1960 (U.S.A.,U.S.S.R.,GreatBritain,
Belgium,Morocco).Thetechnical principle consistsofmakinga
reactionfrontadvanceinacoalseambysupplying oxygen(air)
eitherfromtwoboreholes drilledfromthesurfaceorfromexisting
mineworkings,andthendrawingtheresulting gasmixturetothe
surfaceforfurthertreatment .

AlltestsBOfarcarriedoutonsuchprocesses havefailedin
practiceforthefollowing reasons;
–onlyafraction oftheenergycontentofthecoalisutilized
–thegasmixtureproduced hasonlyaverylowcalorific value
(about1000kcal/m^)andisofveryvariablecomposition
–itisextremely difficult ortotallyimpossible tocojitrolthe
reaction temperature becauseofgeological disturbances ,f^lls
ofgroundandthepossible influxofwater
-rthqrisksofsurfacesubsidence (damagetobuildingsanddjfaina^p
systems)andpollution <rfgrouj)4watercannotbeeliminate^
«rthqcostofgasproduction isconsequently v«iryhigh.
SincQ1973»theproblemofunderground gasification hasbeenre-ex^^nined
and,asaresult,undercertainveryfavourably geological
conditions (verythick6eams,highvolatilemattercontent,shall^fw
depth)*processes oftheconventional typearebeingusedwithsoi^e
successintheU.S.A*,although thecalorific valueofthegasis
stilllow.
InEurope,ontheotherhand,andnotablyinBelgiumandtheFederal
Republic ofGermany,newinvestigations areunderwaywithaviewto
carrying outgasification underpressureatgreaterorlesserdepths.
Theaimistoachievebettercontrolofthegasification reactions
andtoobtainarichergas,withtheobjective ofmakinguseof
»»depositsthatcannotbeexploited economically bytraditional mining
techniques .Collaboration hasbeenestablished betweenthetwo
countries inordertocarryoutjointresearch work.Whatarethe
prospects forthisnewprocess?Theanswertothequestion canbe
pbtainedonlybyfullscaletests,following a_seriesofpreliminary
laboratory studies,whichwillconfirmordenytheeconoaicvalue
pfthenewtechnique .
Liguefaction ofcoal
?hetechnology ofcoalliquefaction isbasedor»threeknoi»fup^ocespes
phichhavealreadybeenapplied QJItheindustrial scale:
vJiydrogenation ofcoalunderpreusure (BERGIUS/PIER)
vextraction ofcoal(POTT-BROCHE/UHDE)
vsynthesis ofpetrolfromwatergas(FISCHER-TROPSCH )
(practised ontheindustrial scaleatSASOLBURG,SouthAfrica).

I
8.
Severalnewmethodsbase<|ontheqieprinciples arebeingdeveloped
intheU.S.A.ttheFederalRepublic *ofGermanyandGreatBritain
*inordertoijnprovethetj^chniquqi andtheyield,,e.g.theH-COAL]process
(bydrogenation ),theCONSOLSXNTW2TIC RJELandSOLVEOT-HEFDHjiP CO^jL
I processes (extraction),theGEMEitlALATOMIC/GULP(liquefaction/
gasification withnuclearheat)pndEXXONprocesses,andthehydr^p
genationprocess(NCB).
Similarly ,theclassical processoflow-temperature carbonization
(pyrolysis )isattracting renewedinterest,particularly inconnection
withcarbonization inmulti-stage fluidised bedswherethechari^|
usedincombined'processes fortheproduction ofelectricity or
gas(COEDandCOGASprocesses).Anothervariation involvespreliminary
distillation ofcoal(LURGI-RUHRGAS )inordertoobtainby-products
beforecombustion oftheresidueinpowerstations.
I
Thetonnages_of coalneededfortheclassical liquefaction processes
areofthefollowing order(pertonneofpetrol)
–hydrogenation :3*2tonnesofhardcoal,or9*3tonnesoflignite
!
|-synthesis:4*8tonnesofhardcoal,or16*4tonnesoflignite
Thesefigurescouldbeimprovedbyusingnuclearheat.Thecpstof
petrolmadefromCommunitycoalisestimatedat0.13to0.16UA/litrie,
or16to21U&/Gcalywhilethecostofproducir^gpetrolinanoil
Refineryisoftheorderof0.10VA/litre.
fortfcisreasonitwouldbesensibletoproduce,inthefirstplac,p,
(pnlyftheavyoilfromcoalatajupiceofaboutp.11UA/litre.Thi,p
Ifieavyoilcouldactasasubstitute forthefueloilthatiscurrejptly
t>urntinpowerstations,thusmakingthelattermaterialavailable
iforclackingandproduction oflighterhydrocarbons .Itisnecessjpjrjp,
however,totakeaccountofthefactsthatnoexperience ofthene]f
processes hasyetbeenobtained ontheindustrial scale,thatthe
capitalcostsdependmainlyontheproductthatitisdesiredto
Obtain(oil,gas,petrol),andthatitisverydifficulttoestimate
production costs.
Itisonlybypilot6caleteststhatpreciseinformation about
production costsandthetechnical andeconomicvalueoftheprocepevs
canbeobtained *

-1-
FINANCIAL IMPLICATIONS '
presented only asindication *
I.Demonstration projects forsaving energy Financial year 1978
1.Relevant budget heading code Article 324
2.Title ofbudget heading :"Community demonstration projects under the
Community 'senergy-saving programme "*
3*Legal basis :
3.0.Article 235oftheEECTreaty .
3.1 .Proposal foraCouncil Regulation onthegranting offinancial aids for
demonstration projects forsaving energy -_l --- -–
4.Description ,objectives and justification oftheproject
4.0 .Description oftheproject /persons concerned
4.0.0 .Description :Financial support ,foroperations demonstrating new
technologies ,processes ,equipment orproducts liable to
increase theenergy efficiency ofinstallations ,with a
view toestablishing their viability andspeeding up
their dissemination .
4.0.1 .Persons concerned
J
4.0.1.0 .Category :Community enterprises
4.0.1.2 .ITunbe r:About 50
4.0.1.3 .Location :Community territory
*
4.1 .Objectives
4.1.0 .General objective :Inview ofthe size ofthedeficienc.v expected ,mth
production ofenergy from indigenous sources andthe
difficulties ofagain speeding updevelopments -
particularly inthenuclear sector -theCouncil
recognized ,on29March 1977 ,theneed tointensify
theCommunity 'senergy-saving programme ,specif icall
by "financing demonstration projects .**
4.1.1 .Specific objective ;'Theprojects tobefinanced :
–must genuinly bethefirst full–scale ones oftheir kind executed
andbecapable ofproviding abenchmark andencouragement forother
installations ofthesame type throughout theCommunity .
*These amounts will besubmitted forapproval intheframe ofthe
budgetary procedure
**COM (77)39 final

2.
-mustoffersufficient prospects ofpayingoffintermsofsavings
inenergyandoperating costs#Shouldtheirtechnical viability
bedemonstrated ,asaresultofthisfinancing ,theonly
consideration promoting thedissemination ofthetechnologies or
equipment inquestionistobefinancial attractiveness forusers;
-mustbesufficiently widelyapplicable ,sothattheirdissemination
canprovidesignificant medium-term energysavingsatCommunity
level*
Demonstration projects whichtheCommission isintending tofinance
willbechieflyinthefollowing areas:
(i)heatpumpsii)heatrecovery
(iii)combinedheatandpowerproduction
(iv)energystorage
(v)reduction ofwasteofenergyinindustry
(vi)low-energy dwellings.
Thisproposal couldbeexamined bytheCouncilinthesecondhalf
of1977.TheCouncilmeetingof29March1977hasalreadyagreed.,
totheprinciple oftheoperation asoutlinedinDoc.0011(77)39 •
Practical actiontosaveenergyisalsooneofthepriorities
mentioned mostfrequently bytheCouncil.
4.2.Justification oftheformofactionchosentoattaintheobjectives
Although theincreaseinenergvproceshasmadeinvestments for
savingenergyeconomically attractive -ormoreso-,investors
arestillmadehesitant becauselittle,ifanything ,similarhas
actually beenbuiltorinstalled .HenceasystemofCommunity aid
isproposed togetinvestment forsavingenergyunderwar-randproduce
significant savingsasswiftlyaspossible .
Thisaidisforthepurposeoffinancing selecteddemonstration
projects andtheresultswouldbemadeavailable totheMemberStates
onanon-discriminatory basis.
5*0*Implication inrespectofexpenditure
3.0.0.Operations covering severalyearstobechargedtotheBudgetas
appropriations forcommitment andappropriations forpayment
*("differentiated appropriations ") 7~
5.0.0.0.Hultiannualscheduleofappropriations forcommitment and
appropriations forpayment (inm^UA)atcurrentprices
•A

3.
Sch.edu .le
ofScheduleofforeseeable payments =
appropriations forpaymentrequired
commitments1973 1979 1980 1981Subsequent fi­
nancial years
2.Newappro­
priations
for
commitment
-1978
-1979-198045
48
5117 13
-1815
15
2015
15- 16
TOTAL 144 17 31 50 30-) 16
5.00.1.Methodofcalculation ,generaleconomicsituation andfactorsof
uncertainty . ;
5.00.1.0 .Methodofcalculation ,inrelation withthegeneral economic
situation
Appropriations forcommitment for1978,1979and1980andschedule
ofpayments.
-Community participation willinnocaseexceed40$o.
-Itisestimated that39mSUAcouldprovidesupportforallthe
following projects :
•twoprojects incombinedheatandpowerproduction
•twodistrict-heating projects
•fivetotenfairlybigprojects onindustrial processes
•upto40smallprojectsintheindustrial ,commercial
andresidential sectors.
-Thisvarietyoftypesofprojectwouldbefinancedeitheronan
annualbasisoroveraperiodofthreeyears:
•annualbasis(aboutone-quarter ofthetotalappropriations )
forheatpumps,reduction ofwasteofenergyinindustry and
low-energy dwellings .Paymenttobemadeinfullinoneyear.
•overthreeyears(theremainder ,i.e.three-quarters ofthe
appropriations )formorecostlyprojects :combinedheatand
powerproduction ,districtheating,heatrecovery andenergy
storage.
Inthiscase,payments wouldgenerally bemadeasfollows :
20fowhenthecontractissigned,
4C$inthesecondyear,
40/ointhethirdyear.
Thisprogramme wouldinitially runforaperiodofthreeyears.Itwouldsubsequently bereviewedtodecidewhetherornotto
extendit. •

4
At1977prices,anestimated 39m&JAperannumwouldberequiredtofinancetheCommunityprojectsin1978,1979and1980•Assumingthat
thepriceandcostindexmovesfrom100in1977to108in1978,ll6in1979and124in1980,appropriations for.commitment emergeas:
1978 s45mEUA
1979 î48.mEUA
1980 :51mEUA
Bywayofexample,thisishow1978*Sappropriations forcommitment
werecalculated :
-paymentsfor1978:25$(59xl,08)+20$x75$ (39x1,08)«17mEUA
1979: 40$x75$(59x1,16)=i3mEUA
1980; 4<$x75f*(39x1,24)=.15mEUA
...Total=/45mEUA
.00.1.1.Factorsofuncertaintyf
Factorsofuncertainty operateinthreeareas:
a)commitments :theamountofsupporttobeaffordeddependsonthe
numberofprojects putup,andontheirquality ,ontheinvestment
neededtocarrythemoutandthelevelofsupportforwhichthe
Councilopts;
b)payments :theprojectsselected maybeabandoned ,modifiedor
delayedbeforecompletion ,entailing ohangesintheschedule of
payments *AndtheCommission maysuspendorwithdraw financing in
certaincases{
c)repayment ofcapitale :someofthemoneyrequested couldbe
provided onthecondition thatitispaidbacliftheprojectis
successful ,andmightthenbereallocated *
Controlarrangements
Hoprovision ismadeforchecks ^bytheMemberStates*Theauthorizing
department andFinancial Controlwillcarryoutperiodical checks
insituandfromdocumentary evidance andmonitortheprojects through
themediumofperiodical ,technical andfinancial reportswhichthe
firmsarerequired tosend.
6.1.TheCommission isrequiredtopresettotheCouncilaperiodical
progress reportoneachprojectandthecostsincurred ,andtoinform
theCouncilandtheAssembly abouttheapplication oftheRegulation
whichisbeingprepared *

5
7«Financial implications oftheactionthroughout itsexpectedduration
Supportfordemonstration projects aspartoftheCommunity'senergy-saving
programme isathree-year programme renewable eachyear#
Itistherefore acontinuous operation ,thecostofwhichinanaverageyearwouldbesplitabout40/60betweentheCommission andthefirms
responsible forprojectsfinancedonanannualbasis(seeparagraph
5.OO.I.O.).
Withprojects whicharefinanced overathree-year period,theCommission
wouldfinancethenetextracost,compared withaconventional type
oftheinstallation undertest.

–ο–
II.Financial support forprojeota teexploit geothermal resources ,
A.Proiects toexploit geothermal resources
1»Relevant "budget heading code :*32*•
2.Title ofbudget heading :Community financial support forprojects to
exploit geothermal resources .
3.Legal "basis :Article 235oftheEECTreaty
4.Description :
Toreduce theCommunity 'sdependence onimported oil ,usemust "bemade
ofindigenous ,economically-workable energy resources (seetheCouncil (
Resolutions of17December 1974 and13February 1977 )•
After theresearch stage ,themain aimofwhich istodefine theCommunity 's
geothermal potential ,greater exploitation ofgeothermal power is
conditioned bythedevelopment ofnewtechnologies ,the existence of
geological hazards which introduce ahigh element ofrisk inrespect
ofreturns from the investment andthe substantial investment required ."
Community financial support forprojects toexploit geothermal resources
would enable the financial risk tobereduced andthenewtechniques
disseminated byaprocess ofdemonstration .
Initially ,this would beafive-year operation .
5# -Type ofexpenditure
Support would begranted tofirms planning toinvest intheexploitation
ofgeothermal power forelectricity generation andtomake use of
geothermal heat .Itwould take theform ofgrants repayable under certain
conditions ,butconstituting only aminority share ofthefinancing ,and
not exceeding :
-40 'ftofthereservoir exploration ^phase ,50'ftofwhich would berepayable
iftheresults were positive , „
-20$ofthefinancing ofthereservoir utilization phase ,which would
berepayable infull .
Support could cover 20to40 ofthefinancing ,depending onthetype
ofproject .Thetotal amount requested is83mSUA ,which could enable
support tobegiven to15to30projects .
6.Justification '
Inview ofthen6ed todevelop newtechnologies ,thegeological contingencies
andthehigh cost ofthis type ofinvestment ,thegreat financial risks
•entailed would deter the fr.rms concerned from launching such projects .
Community support istherefore needed sothat these firms donotpull out
ofthis field ,leaving anewsource ofenergy untapped .
/•

-7-
.(•Methodofcalculation
Supporttotalling nomorethan83mEUAover5years,withthefollowing
commitments :
10%in1978
190in1979
.25#in1980
25#in1981
255»in1982
Itisdifficult toestimatethepaymentscorresponding tothesecommitments ,
butinordertoindicateaschedule ofappropriations forcommitment and
appropriations forpaymentuntil1980(seetablebelow)itisproposed
thattheprojects coverthreeyears,payments beingmadeasfollows :
20Jswhenthesupportcontractissigned
40Jointhesecondyear
40^inthethirdyear 'f
Theappropriations forcommitment willhavetotakeintoaccountcost
increases duringtheperiodofexecution *At1977prices,8,33mEUAwoulcl
beneededfor1978,12,5tiEUAfor1979and2,8mEUAfor198°.Assuming
anincreaseinthepriceindexfrom100in1977to108in1978,ll6in1979
and124in1980,thefollowing appropriations forcommitment are
obtained (roundfigures):
1978:9,8mEUA
1979:15,7mEUA
1980s27,4mEUA
Bywayofexample,thecalculation for1978isasfollows :
paymentsfor1978:2x1,67=1,8mEUA
1979:4χ3,33 =3,8πιΕυΑ
1980:4x3,33=4,2mEUA
;9,8mEUA ,
Newappro­
priations
for
commitmentSchedule of
Commit­
mentsPayments ' I
1978 1979 1980 l9oiEnsuingyears
-1978
-1979.-19809,8
X5r7-_....
87r8lf8 3.8
2.9,4,2.
6,2.
5,2.6,6
il-,9 11,6
1,8- -7 15,6 11;6

B.fluni-Mnationandliquéfaction efcoal
-1978Financial year-
1«Relevant budgetheadingcode:323
2.Titleof"budgetheading :"Projects onconstruction andtrialofpilotplants
fortheconversing ofsolidfuelsintohydrocarbons "
3.Legalbasis:-Article 235oftheEECTreaty
-Proposal beingdrawnupbytheCommission departments
-Preliminary draftCouncilRegulation underpreparation
-thefourthindentofItem44oftheMedium-term guidelines
forcoal(Doc.COM(74)i860),adoptedbytheCommission on
2November 1974andpublished inOJ*NoC22of30January1975*
4.Description ,objectives andjustification oftheproject ;
4*0.Description oftheproject
4*0.0.Description :Thegrantingoffinancial aidbytheCommission toCommunity
undertakings orbodiestoencourage theconstruction and
trialofpilotplantsforthegasification andliquefaction
ofcoal(hardcoalandlignite)including subterranean
gasification .
4.0.1.Personsconcerned :
4.0.1.0.Category ?Community undertakings
4.0.1.2.Number:15
4.0.1.3.Geographical location :Community .territory
«
4.1.Objectives oftheproject
4*1.0.Generalobjective :Toestablish anenergypolicy;toconstruct ,inthe
mediumandlongterm,factories toobtainliquidor
gasproducts fromCommunity solidfuelsasasubstitute
forpetroleum inordertoreducetheCommunity's
dependence onpetroleum importsandtohelpensure
securityofenergysupplyinthelongerterm(there
areextensive hardcoalandlignitereserves within
theCommunity )•
4.1.1.Specificobjective :Toprovideincentives fortechnological projects on
thetechniques forconverting solidfuelsintohydro­
carbons.Theintroduction ofgasification techniques
(including subterranean gasification )andliquefaction
ofcoalattheindustrial stagegivesvisetotechno­
logicalandeconomicproblems.3.Legalbasis:-

h»•
-9-
Basicscientific researchhasshown "thatitispossible
toovercometheseproblems# Manyresearch anddevelopment
projectsarenowunderway.Theaimofthisprojectisto
confirmorproveunfounded theresultsobtained inthe
laboratory byconstructing pilotplantsandconductingtrials *Theeconomic andtechnical valueofdifferent
coalgasification andliquefaction processes canbe
foundoutonlybymovingtothesemi-industrial stage,
andthiswillalsoenabletheCommunity tomakean
•exactestimate oftheinvestment involved .Theobjective
ofthisCommunity projectistheindustrial development
ofthistechnology sothattheconversion ofsolid
fuelsintohydrocarbons ,ahighergradeofenergy,can
beretained asafeatureofenergypolicyinrespect
ofenergysupply.
4.2.Justification oftheprojectchosentoattainthe,,objectives
Forseveralreasons-thetechnical risks,thehighcostofsuchprojects
whichcannotbebornebyonecountryalone,theincreasing importance of.
problems ofcoalgasification andliquefaction intheCommunity ,thetechnical
andeconomic problemsstilloutstanding ,thetimerequiredtoarriveatresults
whichcanbeusedonanindustrial scale,theextensive reserves ofsolid
fuelsintheCommunity ,theimportance oftheseproblems withregardto
energysupply-forallthesereasonsthisprojectcouldnotbecarriedout
withoutfinancial supportfromtheCommission ,astheseindustrial technolo­
giesmustbemadeavailable totheCommunity ingoodtime.Itisimpossible
topooltechnologies andmakethemavailable inallCommunity countries
withoutfinancial supportfromtheCommunity .AnyotherformofCommunity
intervention wouldnotbecapableofproducing thesameresults.
5.0.Implications inrespectofexpenditure
5.0.0.HultiannualprojectstobeenteredintheBudgetinappropriati onsfor
commitment p.ndappropriations forpayment"X"d.ifferentiatedappropriations";
5.0.0.0.Kultiannual timetable fortheappropriationsforcommitmentandthe
appropriations forpayment7Tn£jOA,atcurrentprices)
Timetable
for
"commitmentslimetab
require ;leforpaymentsforecast= j
mentsinaDoronriations forna'Tnent |
1978
[19791980 1981 1952
newappropriations
forcommitment
-1978
-1979-198016mSUA
23mSUA
26mEUA6,04,8
8,75,2
6,9
9,27,4
7,3 9,5
Total 6.013,521,3 14,7 |9,5

-10-
5.0.0.1.Methodofcalculation ;theconnection withthegeneraleconomic
situation ;factorsofuncertainty
5.0.0.1.0 .Methodofcalculation andconnection withthegeneraleconomic
situation . .
TheCommunity schemesfortheconversion ofsolidfuelsintohydro­
carbonswill "belaunched overaperiodofthreeyears.Theproject
shouldbeinoperationfor10to15years.Asageneralrule,payments
willbephasedapproximately asfollows :
40$whenthesupportcontractissigned
.30fointhesecondyear
30$inthethirdyear
Thecommitment criteria musttakeaccountofrisingcostsoverthe
threeyears.
1278,
Bywayofexample,theappropriations forcommitment for/0979and1980
are23and26mSUArespectively ,weightedat108,116.and124
5.0.0.1.1 .Factorsofuncertainty
Therearefactorsofuncertainty attwolevels:
a)Commitment level:theamountofsupportdependsonthenumberof
projects tobeimplemented ,whichinturndependsontheirsoundness
andvaluetotheCommunity .
b)Paymentlevel:someoftheprojectsselectedcouldrunbehindor
aheadofschedule.Thelevelofinvestment (construction )willalso
affectpayments.
6.Typeofcontroltobeapplied
6.0.Theauthorizing department (DGXVII)andFinancial Controlwillcarryout
annualon-the-spotinspections andwillexaminethesupporting documents
inordertofollowthefinancial development oftheprojects .Anadhoc
committee ofexperts,tomeettwiceayearorwhenever necessary ,willbe
setuptoinspectthetechnical execution oftheproject.
6.1.EachyeartheCommission willreporttotheCouncilonthestateofprogress
andontheexpenditure incurred.
7.Financial implications oftheproject (forthewholeofitsexpectedduration)
(inSUA) : :
Theprojectisexpectedtoextendoveraperiodof10to15yearsstarting
in1978at20mSUAperyear.Thisisalong-term projectandthecostisto
besharedbetweentheCommission andtheundertakings inchargeofthe
projects.
./

-11-
6.Information regarding staffing andtheappropriations foradministrative
expenditure necessary fortheimplementation ofthepro.lect
8.0.a)Investigation ofapplicationsandtechnicalmanagement
Onecommittee ofexpertsfromthecountries concerned ,comprising
17national expertsandscientists
Frequency ofmeetings :threemeetings ayear,twoofwhichinthe
fieldforthetechnical management oftheproject.
b)Administration byCommissiondepartments
Theprojecttobeadministered bytheadministrative unitXVII-B-4,
CoalResearch andTechnology .
9*Financing theproject
Byappropriations intheGeneralBudgetunderArticle235oftheEECTreaty.
10.Appropriations tobeenteredinfuturebudgets
20mEUAayearat1977pricesforaperiodof10to15years*
if