Introduces State aid scheme for investments in energy and fuel from biomass and renewable hydrogen

On 27 March 2024, the European Commission approved a €900 million State aid scheme from France to support investments in the production of energy and fuel from biomass and renewable hydrogen, fostering the transition to a net-zero economy. The scheme provides subsidies and repayable advances for new or expanded installations using biomass for heat and fuels, as well as renewable hydrogen for industrial processes and transport. Projects must become operational within 36 months of receiving aid.

The aid intensity is capped at 45 per cent of investment costs, with higher limits for small and medium-sized enterprises. Funding will be available until 31 December 2025. This initiative aims to support renewable energy projects, accelerate decarbonization, and reduce reliance on fossil fuels, in alignment with the European Union’s REPowerEU plan and Green Deal Industrial Plan.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Not industry specific (SDG)
  • Services (Electricity, gas, steam and air conditioning supply)

• Sources:

  • europe-en-france.gouv.fr, SA.109766 - Régime cadre temporaire d’aides à la production de chaleur, de combustibles et de carburants dérivés de la biomasse et de l’hydrogène renouvelable, https://www.europe-en-france.gouv.fr/fr/aides-d-etat/regimes-d-aide/sa109766-sa109766-regime-cadre-temporaire-aides-production-chaleur, 27 Mar 2024
  • European Commission , Commission approves €900 million French State aid scheme to support the production of energy and fuel from biomass and renewable hydrogen to foster the transition to a net-zero economy, https://ec.europa.eu/commission/presscorner/detail/en/ip_24_1549, 27 Mar 2024