Brussels, 15/09/2010 (Agence Europe) - On Wednesday 15 September, the European Commission decided not to allow the €19.5 million in regional investment aid (notified to the Commission in 2008) that Italy intended to grant towards the takeover and conversion, by Fri-el Acerra S.r.l, of a closed thermoelectric power plant into a power plant fuelled by bioliquids (mainly rape seed oil). However, since the aid has not yet been paid out, it will not have to be recovered.
Following a careful investigation, begun in March 2009, the Commission decided that, while the purchase of the power plant could be considered compatible with EU guidelines on regional aid, the aid envisaged was not a determining factor in the realisation of the project. Furthermore, the project did not help attract new regional investment to Campania. The investment project was launched in February 2006, long before the aid was granted, and, in the meantime, has been finalised. This, the Commission says, shows that the aid was not necessary to attract the investment. A further condition of the guidelines is that this type of project must contribute significantly to development of the region in which it takes place. The Italian authorities failed to demonstrate that the project would have a significant effect in terms of job creation and electricity generation from biomass. The amount of the aid itself did not appear commensurate with the benefits it claimed to bring to the region. (F.G./transl.rt)