EC approves €900m French State aid to support biomass and renewable hydrogen

The European Commission has approved a €900 million French scheme to support companies investing in the use of biomass and renewable hydrogen in energy and fuel production, to foster the transition towards 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.

France notified to the Commission, under the Temporary Crisis and Transition Framework, a €900 million scheme to support the production of (i) heat and fuels from biomass, such as synthetic gas and biochar, for use in industrial processes, and (ii) liquid fuels from biomass and renewable hydrogen, for use in industrial processes and transport.

Under this measure, the aid will take the form of direct grants, covering part of the eligible investment costs.

The measure will be open to new installations and projects that are significantly accelerated or scaled up. Projects will have to be completed and put in operation within 36 months from the granting of the aid.