On Thursday 25 July, the European Commission authorised a French aid package worth €1.5 billion to support the production of sustainable biomethane to foster the transition to a net-zero economy.
The aid was approved under the temporary crisis and transitional framework for state aid adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and 2 May 2024.
The French scheme will be open to new facilities with an estimated annual biomethane production of more than 25 gigawatt hours (GWh) per year. The facilities must be completed and operational within 36 months of the aid being granted. The measure should support the production of 1.6 terawatt hours (TWh) of sustainable biomethane per year.
Aid will be granted in the form of two-way contracts for difference concluded for a duration of 15 years. The amount of aid corresponds to the difference between the exercise price, determined in the beneficiary’s offer (‘pay as bid’) and the market price of natural gas. However, if the market price of natural gas is higher than the strike price, the difference between the two prices will be reimbursed to the State.
Link to the case: https://aeur.eu/f/d4h (Original version in French by Lionel Changeur)