Image Credits : Pixabay , Image used for illustrative purpose only.
1 minute read

EU approves €140m state aid for Portugal’s biomethane and hydrogen production

The European Commission has approved a €140 million Portuguese scheme to support the production of renewable hydrogen and biomethane to foster the transition to a net-zero economy, in line with the Green Deal Industrial Plan.

The scheme was approved 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 measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.

Under the scheme, the aid will take form of a variable premium under a two-way contract for difference concluded for a duration of 10 years.
The aid is awarded through a competitive bidding process where renewable hydrogen producers and biomethane producers compete separately.
In the competitive bidding process, beneficiaries are selected on the basis of the strike price per MWh of renewable hydrogen or biomethane offered.

The Commission said the Portuguese scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework.
In particular, the aid will be granted on the basis of a scheme with an estimated capacity volume and budget; will take the form of a two-way contract for difference; and will be granted no later than 31 December 2025.

Furthermore, the aid is subject to conditions to limit undue distortions of competition, including safeguards to guarantee the competitiveness of the bidding procedure, according to the Commission.

It concluded that the scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance to implement the REPower EU Plan and the Green Deal Industrial Plan.

Legal Disclaimer:
Bioenergy News
GLOBAL FLOW CONTROL provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above. "

Latest News

  • Pulp and Paper
    1 minute read

    J&F announces R$25 billion for new…

    24 Apr. 2024 | Global Flow Control
  • LNG and Industrial Gases
    2 minutes read

    Shell, TotalEnergies in Talks for Stakes…

    24 Apr. 2024 | Global Flow Control
  • Renewables
    1 minute read

    ONGC plans drilling for first geothermal…

    24 Apr. 2024 | Global Flow Control
  • Power Generation
    3 minutes read

    SaskPower Names Burns & McDonnell as…

    23 Apr. 2024 | Global Flow Control