Brussels ( Brussels Morning) – European Commission authorizes €900M French initiative to promote biomass and renewable hydrogen, aiding green transition and reducing reliance on imported fossil fuels.
The European Commission has authorised a €900 million French scheme to back companies investing in the use of biomass and renewable hydrogen in energy and fuel production, to facilitate the transition towards a net-zero economy in line with the Green Deal Industrial Plan. The scheme was backed under the State Aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 and amended on 20 November 2023, to support efforts in sectors which are key to accelerating the green transition and reducing fuel dependencies.
France informed the Commission, under the Temporary Crisis and Transition Framework, a €900 million scheme to sustain the production of (i) heat and fuels from biomass, such as synthetic gas and biochar, for usefulness in industrial processes, and (ii) liquid energies from biomass and renewable hydrogen, for usage in industrial processes and transport.
Under this benchmark, the aid will take the form of direct grants, encircling part of the eligible investment costs. The action will be open to new installations and schemes that are significantly accelerated or scaled up. Schemes will have to be completed and put in process within 36 months from the granting of the aid.
The Commission uncovered that the French scheme is in line with the requirements set out in the Temporary Crisis and Transition Framework. In certain, the aid (i) will incentivise the production of energy and fuel from renewable sources; (ii) will not surpass the maximum aid intensity allowed; and (iii) will be given no later than 31 December 2025.
The Commission figured that the French scheme is necessary, reasonable and proportionate to accelerate the green transition and encourage the development of certain economic activities, which are of significance for the implementation of the REPowerEU Plan and the Green Deal Industrial Plan, in sequence with Article 107(3)(c) TFEU and the requirements set out in the Temporary Crisis and Transition Framework.
On this basis, the Commission authorised the aid measure under EU State aid rules. On 9 March 2023, the Commission embraced a new Temporary Crisis and Transition Framework to foster support efforts in sectors which are key for the shift to a net-zero economy, in line with the Green Deal Industrial Plan. The Framework amends and extends in part the Temporary Crisis Framework, adopted on 23 March 2022, to allow Member States to use the flexibility foreseen under State aid regulations to support the economy in the context of Russia’s war against Ukraine.
The Temporary Crisis and Transition Framework has been amended on 20 November 2023 to extend by six months a limited number of sections desired to provide a crisis response following Russia’s attack against Ukraine and the unprecedented increase in energy prices.
Margrethe Vestager, Executive Vice-President in command of competition policy, remarked: “This €900 million scheme will help companies to expand the use of energy and fuels produced from biomass and renewable hydrogen. By decreasing the reliance on imported fossil fuels, it will contribute to the attainment of the EU’s goals. This measure is a critical step in the transition to a net-zero economy while guarding the level playing field in the Single Market.”
