EC approves €900 million French state aid for renewable hydrogen

Green Forum28 March, 2024 at 7:00 AM

The European Commission has given the green light to a €900 million French initiative aimed at bolstering companies investing in biomass and renewable hydrogen for energy and fuel production, aligning with the objectives of the Green Deal Industrial Plan to advance towards a net-zero economy. 

This scheme, sanctioned under the State Aid Temporary Crisis and Transition Framework, originally adopted on 9th March 2023 and revised on 20th November 2023, seeks to support initiatives in sectors pivotal for expediting the transition to green practices and reducing reliance on traditional fuels.

The French proposal, presented under the Temporary Crisis and Transition Framework, entails a €900 million program to encourage the production of (i) heat and fuels derived from biomass, including synthetic gas and biochar, for utilization in industrial operations, and (ii) liquid fuels derived from biomass and renewable hydrogen, for both industrial usage and transportation.

Under this scheme, financial assistance will be provided through direct grants, covering a portion of the eligible investment expenses. The program welcomes new installations and projects with significant acceleration or scalability. Projects must be finalized and operational within 36 months from the disbursement of aid.

The Commission determined that the French initiative adheres to the Temporary Crisis and Transition Framework stipulations. Specifically, the aid will stimulate the production of energy and fuel from renewable sources, ensuring it does not surpass the maximum permitted aid intensity and is disbursed no later than 31st December 2025.

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