European Commission green-lights French €900 million scheme to bolster the production of renewable hydrogen and biomass-based fuels.
This substantial investment, sanctioned under the State aid Temporary Crisis and Transition Framework, marks a pivotal step towards realizing the objectives outlined in the Green Deal Industrial Plan and accelerating the transition to a net-zero economy.
The approved scheme aims to incentivize companies investing in the utilization of biomass and renewable hydrogen for energy and fuel production. By offering direct grants to cover a portion of the investment costs, France seeks to encourage the deployment of innovative technologies that harness the potential of renewable resources. This initiative aligns seamlessly with the EU’s broader agenda of reducing fuel dependencies and advancing sustainable energy solutions.
Under the scheme, funding will be allocated to support the production of heat and fuels derived from biomass, including synthetic gas and biochar, for industrial processes. Additionally, liquid fuels sourced from biomass and renewable hydrogen will be targeted for use in both industrial processes and transportation. The measure prioritizes new installations and projects that demonstrate significant acceleration or scaling up, with a stringent completion timeline of 36 months from the grant of aid.
The European Commission’s endorsement underscores the scheme’s compliance with the conditions outlined in the Temporary Crisis and Transition Framework. By adhering to maximum aid intensity limits and a strict timeline for aid disbursement (by December 31, 2025), the French initiative aligns with EU State aid rules. Furthermore, the Commission’s assessment acknowledges the necessity, appropriateness, and proportionality of the scheme in facilitating the green transition and supporting key economic activities outlined in the REPowerEU Plan and Green Deal Industrial Plan.
