This from the aviation regulators website seems to hold out more hope
Compensation Although the Regulation itself does not expressly state that compensation is payable in cases of delay, the ruling recently delivered by the European Court of Justice in the cases of Sturgeon -v- Condor Flugdienst GmbH and Bock and Others -v- Air France SA maintains that compensation may be payable in delay situations where the delay exceeds three hours.
The amount of compensation which may be payable in the aforementioned circumstances depends on the distance of the flight and the reason for the delay.
If an airline can prove that the delay was caused by an extraordinary circumstance which could not have been avoided even if all reasonable measures were taken, no compensation will be payable.
Examples of extraordinary circumstances may include meteorological conditions, air traffic control restrictions, security risks and strikes that affect the operation of the flight.
As previously stated, the distance of a flight determines the amount of compensation due. If the flight distance is:
1500km or less the amount payable is €250 1500km – 3500km and all EU flights over 3500km the amount payable is €400 3500km or more the amount payable is €600.
It is very important to note that compensation is distinct from and separate to the notion of reimbursement of expenses and/ or the refund of the cost of an unused flight ticket.