The European Commission has today (Wednesday, March 27) approved €900 million funding in France for companies investing in the use of biomass and renewable hydrogen in energy and fuel production.
The support will be used for 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, and for use in industrial processes and transport.
The commission will provide direct grants covering part of the eligible investment costs.
The commission stated that the investment will help in fostering the transition towards a net-zero economy in line with the Green Deal Industrial Plan.
The measure is open to new installations and projects that are being accelerated or scaled up.
Projects will have to be completed and put in operation within 36 months from granting of the aid.
Executive vice president in charge of competition policy, Margrethe Vestager said: “This €900 million 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.
Funding
The scheme was approved under the State aid Temporary Crisis and Transition Framework, which was adopted last year to enable the EU to support the economy in the context of Russia’s invasion of Ukraine.
The framework also allows for limited amounts of aid in any form, granted until June 30 for companies affected by the current crisis or by the subsequent sanctions.
This includes funding of up to €280,000 and €335,000 in the agriculture, and fisheries and aquaculture sectors respectively.
Sanctioned Russian, Belarussian and Iranian entities are excluded from the scope of the measures.