The European Commission has approved a €900 million French plan to support companies investing in the use of biomass and renewable hydrogen in energy and fuel production, to promote the transition to a net-zero economy in line with the Green Deal Industrial Plan.
The scheme was approved under the Temporary Crisis and Transition Framework for State Aid, adopted by the Commission on 9 March 2023 and amended on 20 November 2023, to support measures in sectors key to the green transition and reduce fuel dependence.
The French measure
Under the Temporary Crisis and Transition Framework, France has notified the Commission of a €900 million scheme to support the production of heat and fuels from biomass, such as synthetic gas and biochar, for use in industrial processes; and liquid fuels from biomass and renewable hydrogen, for use in industrial processes and transport.
Under this measure, the support will take the form of direct grants, covering part of the eligible investment costs.
The measure is open to new installations and projects that are significantly accelerated or scaled up. The projects must be completed and made operational within 36 months of the granting of the aid.
The Commission has determined that the French scheme complies with the conditions of the temporary crisis and transition framework.
In particular, the support will stimulate the production of energy and fuels from renewable sources; will not exceed the maximum permitted aid intensity; and will be awarded no later than December 31, 2025.
The Commission has concluded that the French scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities relevant to the implementation of the REPowerEU Plan and the Green Deal Industrial Plan, in accordance with Article 107(3)(c) TFEU and the conditions set out in the Temporary Crisis and Transition Framework.
Margrethe Vestager, executive vice-president in charge of competition policy, said: “This €900 million scheme will help companies increase the use of energy and fuels from biomass and renewable hydrogen.
“Reducing dependence on imported fossil fuels will contribute to achieving the EU's objectives. This measure is an important step in the transition to a net-zero economy, while protecting the level playing field in the internal market.”
Source: bioenergy-news.com
