ARCHIVESHISTORIQUES
DELACOMMISSION
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DOCUMENTS "COM"
COM(82)555
Vol.1982/0178

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COMMISSION urTHEEUROPEAN COMMUNITIES
COM(82 )555 final .
Brussels ,3August 1982
PROPOSAL FOR ACOUNCIL REGULATION (EEC )
onthegranting offinancial support forpilot industrial projects
anddemonstration projects relating tothe liquefaction and gasi­
fication ofsolid fuels
(Submitted bytheCommission totheCouncil )
COM (82)555 final .

SUMMARY
TheCommission oftheEuropean Communities hasproposed tomodifyand
improvetheexistingCouncilRegulations (EEC)Nos.1302/78and728/79
inthelightoftheevaluation reportonthedemonstration projects and,
inparticular ,ofthefirstresultsinthefieldofliquefaction and
gasification ofsolidfuels.
Themaininnovations ares
1
–aregulation fortheliquefaction andgasification ofsolidfuels;
–extension oftheregulation tocoverindustrial pilotprojects
andfeasibility studiesforwhichthequestion ofreimbursement does
notarise;
–thepossibility ofcarrying outprojects outsidetheCommunity ;
Thedraftregulation fitsinwellwithther81eforcoalintheCommunity's
energystrategy andmeetstheenergyobjectives de/inedbytheCommunity ,

EXPLANATORY MEMORANDUM
1.ActionatCommunity levellaunched "bytheCommission concerning
demonstration projectsrelating totheliquefaction aridgasification of
solidfuelsisatpresentcovered by*:
C1")a)CouncilRegulation (EEC)NO.1302/78,whichconcernsalternative
energysources,togetherwithCouncilRegulation (EEC)HO.728/79,
whichconcerns theliquefaction andgasification ofsolidfuels:and
(2)b)CouncilRegulation (EEC)NO.726/79»whichlaysdownthemaximum
amountofaidforprojects toexploitalternative energysources.
2.Following onfromtheseregulations ,twoinvitations tosubmitprojects
havebeenpublished and35projects havebeensubmitted ,involving atotal
costofaround 1000MioECU.Inviewofthelimited amountoffunds
available ,onlyJOMioECUhavebeencommitted contractually ,mostly
relating totheinitialstagesofthe12projects selected.TheCommission 's
contribution wasgenerally 40$,"but10$foroneproject.
Itshouldbeborneinmindthattheprojects inquestion arelong-term ones
entailing fairlyconsiderable investment *Consequently ,andinviewof
thecashlimitsimposed,itwasthoughtpreferable tosupportindividual
stagesratherthanentireprojects .
3.Thereisconsiderable evidence toconfirmtheeffectiveness oftheprovision
offinancial supportbytheCommunity asregardsthecommencement of
demonstration projects :theconsiderable response totheinvitations to
submitprojects ,thevalueofthefirstresults,thepublication ofregular
newsletters ,meetings betweenthevariouspartiesconcerned ,andthe
expectations inrelation totheinvitations tosubmitprojects arousedinthe
organizations andfirmsconcerned .However,theexperience acquired sofar
alsoindicates thattheapplication ofthearrangements shouldbeimproved ,
andtherefore reviewed .
4.InJuly1981theCommission submitted totheCouncilapreliminary evaluation
(3^report v'ontheapplication oftheregulations .Itgaveanaccountofthe
progress madewiththeCommunity demonstration programme ?withparticular
reference totheinitialexperience gainedandtheproblems involved in
implementing theregulations .
(1)OJNo.L158,16.6.1978
(2)OJNo.L93,12.4.1979
(3)C0M(81)397,17.7.1981

InJune 1$82 "theCommission submitted ,anevaluation report ^assescivig the
first results ofthodemonstration projects ,including theprojects relating
tothe liquefaction andgasification ofsolid fuels ,andindicating the
impact oftheCommunity demonstration programme andthemeasures introduced
"bytheMember States inthecontext oftheir national programmes „
Themain conclusions about the impact oftheCommunity programme relating to
theliquefaction andgasification ofsolid fuels are asfollows :
–only oneofthegasification projects atpresent holds outgood prospects
ofcommercial exploitation ,while theother projects ,inparticular the
liquefaction andunderground gasification projects ,arebynomeans ready
forindustrial –scale use ,asalarge number oftechnical problems have
yet toberesolvedj -
–"theprojects relating tothegasification andliquefaction ofsolid fuels
arelarge-scale ones andtherefore expensive ,vrith theresult that
considerable resources axeneeded (which iswhyfunding hasgenerally been
limited toindividual stages );
–there isnowanurgent need togobeyond these stages ,toensure that
thetechnology' involved intheprojects selected isready tobeused on
anindustrial scale and ,asaresult ,alternative fuels canreplace oil
andnatural gas ; i
–considerable public andprivate funds arestill needed inorder toenable
these projects toreach theoperational stage .That iswhytheindustrial
pilot stage fortheliquefaction andgasification ofsolid fuels isso
very important . * .
i ' .
Reference should also bemade tothesecond evaluation report ,where the
Member States' national programmes areconcerned .Assuch programmes are
non-existent incertain Member States orforcertain sectors ,action at
Community level should complement thenational efforts inorder toensure that
thevarious projects arehomogeneous andconsistent with oneanother ,inorder
toavoid duplication ofEffort within theCommunity ,e.g. thinks toclose
cooperation inthecontext oftheadvisory committees ,,ino:.der toencourage
firms toappreciate theCommunity dimension of "theefforts and ,inthif
way ,toremedy theabsence orpossible limitations ofnational p-'ograamfcs .
(1)C0M(82)324,27.5.1982

3-
8.Although -thepresentprogrammeislimitediriscopebythefundsavails ,ole
itcoversmostofthemaintechnological fields.Theoftenconsiderable
technical problemsinvolvedinapplying themonanindustrial scalestill
havetoberesolved throughdevelopment anddemonstration .
Afewprojectsareclosetoeconomicviability butothersarestillve^-yclose
totheindustrial pilot'stage,astagewhichentailslessinvestment ,
resources andtimeandmakesitpossibletogathersufficiently precise
datainordertoprogress fromtheresear^i and:development stageeitherto
theindustrial stageortothedemonstration stage(inthecaseofamajor
installation ).Inaddition ,oneofthefeaturesoftheindustrial pilot
stageisthatthereisconsiderable flexibility asregardsmodifying pl^rit
andequipment .
9.Theindustrial pilotand/ordemonstration stage.,whichcomesafterthe
research anddevelopment stage,i3thestagepermitting thetransition tothe
■industrial andcommercial exploitation oftechniques ,processes andproducts
whichareinnovatory inthemselves orintheirapplication .
Theindustrial pilotstage .ischaracterized bytheoperation ofaninstallation
havinganadequatecapacity (20-25tonnesaday)andvisingsuitablylarge
components withaviewtoincreasing thereliability ofthetechnical and
economicdataneededtoprogress tothedemonstration stage,andincertain
cases,theindustrial andcommercial stage.
Thedemonstration stageischaracterized bytheoperation ofanindustrial-
scaleinstallation whichshouldmakeitpossible tobringtogetherailthe
technical andeconomicdata,inordertoproceedattheleastpossiblerisk
tothecommercial andindustrial exploitation ofthetechnology .Inmostcasess
industrial pilotand/ordemonstration operations aireavitaladjuncttothe
research anddevelopment programmes atCommunity andnationallevel.
10.Theprojectsrelatingtotheliquefaction andgasificationafsolidfuels
arefundamentally different fromthoiserelatingtotheexploitation ofalter­
nativeenergysources(e.g.geothermal energyandsolorer.srjy)aridenergy–
saving,particularly asaresultoftheirsizo,thefairlylongleadti^~£
andthehighcoatsinvolved.Theytherefore harsspecificfeaturescf

-4-
theirownwhichaxenotcomparable withthoseoftheprojectsrelating to
otherenergysources.Moreoever ,•inthisfielditisunlikelythataproject
willhereadyforindustrial–scale useintheshortterm,andanindustrial
pilotstage(20to25tonne3aday)willusually "beneededbeforethe
commercial demonstration orindustrial application stage.Thiswasin
factalreadyevidentfollowing theinvitations tosubmitprojects-many
projects hadtoberuledourbecausetheywerepilotprojectsratherthan
demonstration projects –andduringtheworkontheprojects underway.
11.Inthelightoftheevaluation ofthefirstresultsandtheconclusions ,and
onthebasisoftheexperience acquired andtheneedforcertainlesswell
advanced processes togothroughtheindustrial pilotstage,theCommission
isproposing asingle,specificCouncilRegulation (EEC)NO..../82onthe
granting offinancial supportforpilotindustrial projects anddemonstration
projectsrelatingtotheliquefaction andgasification ofsolidfuels.
12.Apartfromintroducing supportforindustrial pilotprojects ,thisproposal
foraregulation providesforthefollowing mainadditions ,amendments and
improvements t
«
–thepossibility ofcarrying outprojects outsidetheCommunity ,m
particular inthedeveloping countries ,providedthattheseprojects
aredefinitely ofmutualinteresttothosecountries aswellastoCommunity
firmsandCommunity countries ;
–thepossibility ofgranting financial supportforprojectfeasibility
studies,astheseareexpensive incertaincases;
–therepayment procedures ,whichwillbedefinedcontractually forthe
demonstration projects onacase-by-casebasis,willnotapplytothe
industrial pilotprojects andthefeasibility studies ;
••/••

-asregardsthefinancial aspectsoftheprogramme relating tothe
projectsfortheliquefaction andgasification ofsolidfuels,the
amountstobemadeavailable bywayofsupportshouldbeenteredinthe
generalbudgetoftheCommunities inordertoinvolvethebudgetary
authorities inthedecisions .
13cTheCommission attaches specialimportance totheprojects fortheliquefaction
andgasification ofsolidfuels,astheprocesses usedareintendedtomake
itpossibletoreplacenaturally-occurring gaseousandliquidhydrocarbons
asenergysourcesbysubstitute products derived fromsolidfuels.The
development oftheliquefaction andgasification ofsolidfuels(industrial
pilotanddemonstration projects )inordertoreducedependence onimported
oilandnaturalgasandtodiversify energysupplies shouldfurtherthe
ι
attainment oftheCommunity'senergypolicyobjectives andfitsinperfectly
withCommunity energystrategy andtheroleofsolidfuelsinthisstrategy .
14®Atpresent,becausethereisaslight,andnodoubttemporary ,surplus
ofnaturally-occurring hydrocarbons ,anumberofindustrialized countries are
losinginterest inthedevelopment ofthesesolidfuelconversion processes ,
buttheCommission considers thattheCommunity therefore hasadutyto
taketheresponsibility itselfforthedevelopment anddemonstration of
thistechnology whichitwillneedinviewofitsvulnerability whereenergy
supplies areconcerned ,allthemoresosinceprojects inthissectorare
expensive inviewoftheirsizeandthefairlylongleadtimesinvolved .
Thisshowsthatthebenefits ofjointdevelopment anddemonstration
activities atCommunity levelarereal.

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15.TheCommission intendstostepupitseffortstodisseminate theresults
oftheprojectswithintheComjimnity ,inordertomakethetechnical and
economic information acquired available tointerested parties.Therecipients
ofthesupportarecontractually required toallowthisinformation to"be
madeavailable .
Tothisend,theCommission intendstoorganizeperiodic seminarsat
whichthevariouscontractors workinginanyonesectorcanmeet,and
European conferences withawideraudience sothatexperience ofthe
national andCommunity programmes canbscompared.
16.ItisforthesereasonsthattheCommission isproposing notonlytopursue
thedemonstration activities withresolution ,subjecttocertainadjustments in
ordertotakeintoaccountthespecificfeatures ofthesectorinvolved ,
butalsotobringindustrial pilotprojects withinthescopeofthe
arrangements .Tothisend,andforallthereasonsexplained above,the
Commission herebysubmitstotheCounciltheattached proposal fora
Regulation ontheliquefaction andgasification ofsolidfuels.

PROPOSAL FORACOUNCIL REGULATION (EEC)
onthegranting offinancial support forpilotindustrial
projects and .demonstration projects relating tothe lique­
faction andgasification ofsolid fuels
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
.Having regard ,totheTreaty establishing theEuropean Economic Community ,
and .inparticular Article 235thereof ,
Having regard ,totheproposal from theCommission ,
Having regard ,totheopinion oftheEuropean Parliament ,(l)
Having regard ,totheopinion of .theEconomic andSocial Committee ,(2)
Whereas ,pursuant toArticle 2oftheTreaty ,theCommunity hasasitstask
topromote throughout theCommunity aharmonious development ofeconomic
activities ,acontinuous andbalanced expansion andanincrease in
stability ;
ι
Whereas ,initsresolution of9June 1980 (3),defining thenewenergy
policy objectives fortheCommunity ,theCouncil stressed theneed toreduce
dependence onoil ,inter alia byreducing oilconsumption intheCommunity
toalevel ofabout 40$ofgross primary energy consumption ,byusing energy
more rationally andbydiversifying thesources ofsupply toagreater extent
(3)OJNoC149,18.6.1980 /p.1.

Whereas thedevelopment ofanewenergy strategy for theCommunity
1)reaffirms the role for coal andtheother solid fuels inthis strategy ;
Whereas theconversion ofsolid fuels into gaseous andliquid products
represents analternative energy source which ,after ithas "been developed
totheindustrial stage ,could improve energy supply conditions inthe
Community "bycontributing towards diversification ,andcould reduce "the
Community 'sdependence onimported hydrocarbons ;
Whereas theCommunity should enfeure thedevelopment ofthis new
technology ;
Whereas financial support should begranted after theresearch stage forpilot
industrial projects ordemonstration projects relating totheliquefaction and '
gasification ofsolid fuels which ,asaresult oftheir size andperiod of
development including alengthy stage which isneeded inorder toacquire
experience with large-scale installations ,areparticularly expensive and
entail considerable risks duetothenewtechnologies which they embody ;
Whereas support forsuch projects ,which aretobeundertaken following studies
andresearch giving favourable indications astotheir technical ,commercial
andeconomic viability ,will help toencourage theexploitation ofthe
conversion ofsolid fuels into substitute hydrocarbons andencourage their use
intheCommunity ;
Whereas theexecution ofthese projects relating totheliquefaction and
gasification ofsolid fuels could result inthedevelopment intheCommunity
ofanindustry with potential markets outside theCommunity ;
Whereas thegranting bytheCommunity ofthebenefits envisaged must not
adversely affect theconditions ofcompetition inamanner incompatible with
theprinciples embodied intherelevant provisions oftheTreaty ^
(1)OJNo.C105 ,26.4.1982 /P-1-

-3-
Whereas ,inview oftheneed tolimit such support tothat which is
essential ,theCommunity must have atitsdisposal every means ofassessing
case bycase ,thepossible benefits toitofsuch projects andtheir
compatibility with theenergy objectives .defined atCommunity level ;
Whereas ,tothis end ,therecipients should assume obligations towards the
Community inreturn forthebenefits tobegranted ;
Whereas theliquefaction andgasification ofsolid fuels have genuine
exploitation prospects calling fortheavailability ofproven technologies
ingood time ;
Whereas theCommunity hasalready granted financial support toprojects
relating totheliquefaction andgasification ofsolid fuels pursuant toCouncil
Regulation (EEC )No.1302/78of12June 1973onthegranting offinancial
support forprojects toexploit alternative energy sources (1);
Whereas the Commission has evaluated this action inthe context ofreports
which ithaspresented totheCouncil andtotheEuropean Parliament on '
theapplication ofthe said Regulation ;
Whereas theCommunity progT3J (iraeinthefield oftheliquefaction andgasifi –
cation ofsolid fuels should beextended toinclude pilot industrial projects
asvrell asdemonstration projects ,soastocover allthetechniques inthe
field concerned ,andshould bereinforced subject toincreasingly close
coordination andcomplementarity with theinitiatives undertaken atnational
level ;
Whereas inthis field thesize andcomplexity oftheprojects ,thetime
needed tocarry them out,their costs andtherisks that they involve make
necessary specific rules covering thefield ;
Whereas theTreaty does notprovide thespecific powers necessary forthese
purposes ;
(1)OJNo.L158 ,16,6.1978 /P-3.

HASADOPTED THISREGULATION !
Article 1
i
1.Undertheconditions laiddowninthis,Regulation ,theCommunity may-
grantfinancial supportforpilotindustrial projects anddemonstration
projectsrelating 'totheliquefaction andgasification ofsolidfuels.
2.Forthepurposes ofthisRegulation ,"pilotindustrial installation "
meansaplanthavinganadequatecapacity,intheregionof25tonnesof
coaladay,andusingsuitablylargecomponents withaviewtoincreasing
thereliability oftheeconomic "andtechnical dataneededtoprogress from
theresearch anddevelopment stagetothedemonstration stageand,in
certaincases,directlytotheindustrial andcommercial stages."
Forthepurposes ofthisRegulation ,"demonstration "meanstheoperation
ofaninstallation whichmakesitpossible tobringtogetherallthedata
concerning technical andeconomicviability andtoproceedattheleast
possiblerisktotheindustrial andcommercial exploitation ofthe
technology .
Article 2
1.AllprojectswithinthemeaningofArticle 1mustsatisfythefollowing
conditions :
–theymustrelatetopilotindustrial installations ordemonstration
installations ;
–theymustexploittechniques orprocesses whichareinnovatory in
themselves orintheirapplication ;
-theymustbelikelytoincreasethetechnical andeconomicreliability
oftheprocessandconstitute areference ;
theymustpresentdifficulties withregardtofinance;
-inviewofthesignificant technical and/oreconomicrisksinvolved;

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- "they should .,asageneral rule ,becarried outwithin theCommunity ;
if,however ,aproject isdefinitely ofmutual interest totheCommunity
andtoathird country ,and inparticular adeveloping country ,on
industrial orother grounds ,itmay "becarried outinthat country ,-if
that country agrees .
2.Alist ofthepossible fields ofapplication ofthis Regulation isgiven
intheAnnex .
3.,Financial support maybegranted foraproject asawhole orforindividual
stages .Thestage constituted "byafeasibility study may also beawarded
financial support . '
Article 3
Responsibility forprojects shall devolve upon anatural person oralegal
person constituted inaccordance with the laws inforce intheMember States
Ifthecreation ofalegal entity with thelegal capacity tocarry out
aproject involves additional costs fortheparticipating undertakings ,the
project maybecarried outsimply bycooperation between natural orlegal
persons .Inthat case ,such persons shall bejointly andseverally liable
fortheobligations resulting from Community support .
Article 4
1oSupport foraproject shall take -theform ofaCommunity financial
contribution totheproject ,half ofwhich contribution shall berepayable
under certain conditions inthecase ofdemonstration projects ,taking
into account anyother financial aidfortheproject received orexpected
from Community ,national orother sources ,aswell astheshare oftherisk
which should beborne directly bythose responsible fortheproject .

Suchsupportshallnotexceed49$ofthetotalcostoftheproject.
Thelevelofsupportshall "bedetermined foreachprojectindividually ,
inaccordance withtheprocedure laiddowninArticle 5»Thearaountof
supportwhichisrepayable andthedetailed ,repayment procedures shallbe
specified inthecontracts withtherecipients .
Financial supportforthestageconstituted byafeasibility study
orforpilotindustrial projects shallnotberepayable .
Article 5
Everyprojectsubmitted forconsideration byindividuals orundertakings
intheCommunity following aninvitation tosubmitprojects published
intheOfficial JournaloftheEuropean Communities shallbeexamined
bytheCommission onthebasisofthefollowing information,to bepro­
videdbytheapplicants s
-adetailed description oftheproject,including theorganization
ofitsadministration :
-theenergyimplications ;
-anevaluation ofthepossible effects ontheenvironment ;
-thetime-Bcale forcarrying outtheproject;
-thefinancial situation andtechnical capability ofthepersonor
personsresponsible fortheproject;
-thenatureandextentofthetechnical andeconomic risksinherent in
theproject;
-thecostoftheproject,itseconomicviability andthefinancing
arrangements proposed ;
-theapplication prospects ofthesetechnologies andthebenefits
therebyobtainable fortheeoonomyasawhole;

-7-
-details ofanyfinancial aid which theproject hasreceived ,
atanearlier stage ofresearch anddevelopment ,from theCommunity
orfrom theMember States ;
-details ofanyother financial support by,orexpected from ,the
Member States ortheCommunity ;
-anyother information which may justify theCommunity svipport
requested ; •
-how itisproposed tomake public the results .
2.TheCommission shall decide whether togrant orrefuse support for
projects after consulting theAdvisory Committee ontheManagement
1)ofDemonstration Projects instituted by Commission Decision ...... ,
which shall becomposed ofrepresentatives oftheMember States .
TheCommission 'sdecision shall becommunicated totheCouncil ,the
Member States and the Parliament forthwith ,,
3*Aperiodical report shall bedrawn up bytheCommission forthe
Council andtheEuropean Parliament onthe policy pursued inrelation to
demonstration projects inorder toensure cohesion ofnational and
community action and toenable the Commission better toassess the
results ofthat policy .The Council and the European Parliament shall
express anopinion onthe report .
TheCommission shall establish aprocedure forregular communication with
theMember States inorder toobtain the necessary information on
demonstration actions carried out at national level .
J
Article 6
Thebenefits granted bytheCommunity must notadversely affect the
conditions ofcompetition inamanner incompatible with theprinciples
embodied intherelevant provisions oftheTreaty .
1)OJNo

Article 7
1.TheCommission shall negotiate andconclude .thecontracts necessary for
theimplementation ofprojects selected pursuant toArticle 5.Tothat
end ,theCommission shall drrw upmodel contracts setting forth the
rights andobligations ofeach party ,andinparticular theprocedures
foranyrepayment offinancial support granted ,aswell astheterms of
access toand discemination ofknowledge .
1
2.Theperson orpersons responsible forimplementing aproject inreceipt
ofCommunity support shall send totheCommission ,every sixmonths or
atitsrequest ,areport onthefulfilment ofthecontractual obligations
towards theCommission ,andinparticular theprogress ofwork onthe
project andtheexpenditure incurred incarrying itout .
3.TheCommission shall have access atalltimes totheaccounts relating to
theproject .Itmayhave checks carried outonthe spot andonthe "basis
ofdocumentary evidence asameans ofmonitoring theperformance ofthe
contract andinparticular theprogress andimplementation ofprojects .
4*Where theextent offinancial support from theCommunity andthe size of
theproject sowarrant ,theCommission shall participate asanobserver
inmeetings ofthebodies responsible forthemanagement ofprojects ,if
the contract soprovides .
Article 8
Theamounts offinancial support tobegranted pursuant tothis
»
Regulation shall beentered inthegeneral budget oftheEuropean
Communities .
Article 9
This Regulation shall enter into force onthedayfollowing itspubli­
cation inthe'Official Journal oftheEuropean Communities .
Itshall apply until 31December 1987 .
This Regulation shall bebinding initsentirety anddireotly applicable
inall Member States *

ANNEX
LIQUEFACTION AHPGASIFICATION OFSOLIDFUELS
~Listofpossible fieldsofapplication –
Forthepurposes ofthisRegulation ,"industrial pilotordemonstration
projects"meansprojetsrelating tothegasification ,theunderground gasi­
fication andtheliquefaction ofsolidfuels.
Thislistisnotexhaustive ,nordoesitreflectpriorities .
1.Gasification
1.1Production ofgasofamediumcalorific valueintended inparticular for
industry ,heatgeneration andpowerstations.
1.2Production ofsynthesis gasasarawmaterial forthechemical industry .
1.3Production ofsubstitute naturalgas(SNG)ofahighcalorific value,
foruseinthedistribution network.
1.4Combinedand/orintegrated cycleelectricity generation (gas/steamturbines)
1.5Partialgasification ofsolidfuels(inparticular inordertoeliminate
harmfulfuelcomponents ).
2.Underground gasification
2.1Underground gasification –newprocesses underpressure.
2.2Underground gasification atgreatdepth.
3®Liquefaction
Production ofaseriesofliquidandchemicalproducts bymeansofs
3.1Selective synthesis processes toimprovetherangeofliquidproducts.
3*2Directliquefaction processes (hydrogenation ,extraction ,dissolution ,etc.)offeringincreasedefficiency andbetteroperatingconditions .
3»3Newprocesses suchasthehydropyrolysis ofsolidfuels.

FINANCIAL RECORD SHEET
Budgetlineconcerned :Art.702Item7021
Titleofthebudgetline:"Liquefactionandgasification ofsolidfuels".
Legalbasis:
2.1Article 235ofEECTreaty
2.2DraftCouncilRegulation (EEC)NO.,../82ontheprovision offinancial
supportforindustrial pilotanddemonstration projects inthefieldof
liquefaction andgasification ofsolidfuels,modifying andreplacing
CouncilRegulations (EEC)NOS.1302/78and728/79*
Description oftheaction:
Provision offinancial aidtoCommunity enterprises orundertakings forthe
realisation andexploitation ofindustrial pilotordemonstration projects
inthefieldofliquefaction andgasification ofsolidfuels.Theaidmay
begrantedforcomplete projects orforcertainphasesoftheprojects
chosen;thiscontinues theactionundertaken byCouncilRegulations (EEC)
Nos.1302/78and728/79.
Justification oftheaction:
Giventhetechnical risks,thehighcapitalcostsandtheintroduction
ofpartially newtechniques andtechnologies ,theexecution oftheprojects
couldnotbeassured,orwouldbepostponed ,withouttheintervention of
financial supportfromtheCommunity .
Moreoever ,becauseofitsvulnerability intheenergysectorjtheCommissi .<r
judgesthattheCommunity mustitselfundertake thedevelopment anddemon­
strationofthetechnologies thatitwillneed.

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5.Financial reporcus3ions oftheactionon"theintervention appropriations ;
5.1Totalcostovertheduration oftheaction=170MioECU,ofwhich
51.6MioECUcommitted and19MioECUauthorised tobecommitted in
1982.
5.2TheCommunity^financial participation islimitedtoamaxinvumof
49%,andtheremainderisto"befinancedbythepublicand/orprivate
sectors .
Commitment appropriations :1983 25MioECU
1984 33MioECU*
1985 23MioECU*
Paymentappropriations :1983 28MioECU
1984 25-.6MioECU*
1985 21MioECU*
6.Theactionisnotnew,exceptfortheindustrial pilotprojects.
7.Financing ofthecostsofintervention :
7-1No.
7.2Ko
7.3Yes
'7.4Yes
j8.Possible repercussions onresources :None
9»Methodofcontrolenvisaged ;
9.1WocontrolbytheMemberStatesisenvisaged .Theorganizing service
andtheFinancial Controlwillcarryoutperiodic checksonsiteand
ondocuments ,andwillfollowtheprogress oftheprojects throughthe
technical andfinancial reportsthattheenterprises orundertakings are
requiredtoprovideperiodically ,aswellasbyparticipation bythe
appropriate Commission services inmeetings ofthemanaging bodiesof
theprojects .
BBnas&sBsnxsaaeBasiassxisasaacaBsasaa
♦Appropriations including amountsrelatingtoSpainandPortugal

-3-
9.2TheCommission isrequiredtomakeperiodicreportstotheEuropean
Parliament andtheCouncil ontheapplication oftheRegulation in
thefieldofliquefaction andgasification ofsolidfuels.
10.Staffre(faired;
10.1Tasks:Examination ofprojects ,management oftheA.C.P.M. ,
consultation anddecision procedure ,negotiation andconclusion
ofcontracts ,controlofcontractual commitments ,evaluation
reports andperiodic reports.
10»2Supplément arystaff:1official (B)
1secretary (c)