The state aid covers investments in green hydrogen, biogas and biomethane
The state aid covers investments in green hydrogen, biogas and biomethane
The European Commission (EC) has approved a €900 million French scheme to support companies investing in the use of biomass and renewable hydrogen in energy and fuel production.
The scheme was approved under the State aid Temporary Crisis and Transition Framework, which was introduced on March 9, to support measures in sectors which are key to accelerate the transition and reduce fuel dependencies, and falls in line with the Green Deal Industrial Plan.
The Commission concluded that the French scheme is ‘necessary, appropriate and proportionate’ to accelerate the green transition.
France notified the Commission that it aims to produce 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.
Member States can set up schemes for investments in all renewable energy sources, including renewable hydrogen, biogas and biomethane, storage and renewable heat.
The conditions for the granting of aid to small projects and less mature technologies, such as renewable hydrogen, have been simplified by lifting the need for a competitive bidding process, subject to certain safeguards, the Commission states.
Margrethe Vestager, Executive Vice-President in charge of competition policy, said the scheme will help companies to increase the use of energy and fuels produced from biomass and renewable hydrogen.
“By reducing the reliance on imported fossil fuels, it will contribute to the achievement of the EU’s goals. This measure is an important step in the transition to a Net Zero economy, while protecting the level playing field in the Single Market,” she said.
The aid will take the form of direct grants, covering part of the eligible investment costs.
The measure will be open to new installations and projects that are significantly accelerated or scaled up. Projects will have to be completed and put in operation within three years from the granting of aid.
It can be granted in any form in principle until June, and no later than December 31st 2025, and will partially compensate companies, in particular intensive energy users, for additional costs due to exceptional gas and electricity price increases.
The individual aid amount may be calculated based on either past or present consumption, taking into account the need to keep market incentives to reduce energy consumption and to ensure the continuity of economic activities.
Member States may provide support flexibly, including to particularly affected energy-intensive sectors, subject to safeguards to avoid overcompensation and to incentivise the reduction of the carbon footprint in case of aid amounts above €50 million.
Member States can support investments to phase-out from fossil fuels, in particular through electrification, energy efficiency and the switch to the use of renewable and electricity-based hydrogen which complies with certain conditions, with expanded possibilities to support the decarbonisation of industrial processes switching to hydrogen-derived fuels.
Countries can either set up new tender-based schemes, or directly support projects without tenders, with certain limits on the share of public support per investment.
