European Commissions Czech plan to support $2.54B biomethane scheme under EU state aid rules
In Belgium, the European Commission has approved, under EU State aid rules, a €2.4 billion Czech scheme to support the construction and operation of new or converted sustainable biomethane production plants. The measure will contribute to the implementation of Czechia’s National Energy and Climate Plan and to the European Green Deal targets, while helping end dependence on Russian fossil fuels in line with the REPowerEU Plan.
Czechia notified to the Commission its intention to support the production of sustainable biomethane to be either (i) injected into the natural gas grid or (ii) delivered to a filling station or dispensing unit, for use in applications ranging from transportation to heating. The scheme will run until 31 December 2025.
The scheme will support the construction and the operation of new or converted biomethane production plants in Czechia. The scheme will be open to biomethane producers holding a gas production license in the Czech Republic. In order to qualify for aid under the scheme, their biomethane production must comply with the requirements set out in the EU Renewable Energy Directive. The measure is expected to benefit mostly small and medium-sized enterprises or renewable energy communities with projects of up to 6 MW installed capacity.
Under the scheme, the aid will take the form of a green bonus to biomethane producers for each MWh of biomethane produced for a duration of 20 years. The amount of the bonus will be set administratively by the Energy Regulatory Office on an annual basis and will be limited to the funding gap.
The scheme is expected to support installations with a total output of approximately 337 million standard cubic meters of sustainable biomethane.
Category: Policy
