EC approves aid measures of €3bn each for Germany-Netherlands scheme and France

The European Commission has approved two State aid schemes contributing to the achievement of the European Green Deal targets. The Commission has approved a €3bn German-Dutch scheme to support the construction of at least 1.875 GW of electrolysis capacity throughout the globe to produce renewable fuels of non-biological origin (RFNBOs), including renewable hydrogen, to export it and sell it in the European Union. The scheme will be based on a double auction system, with the aid to be awarded to projects of at least 5 MW through a competitive bidding process planned to be concluded in 2025. RFNBO producers offering RNFBO at the lowest price and buyers in Germany and the Netherlands offering at the highest price will each be awarded a contract for the sale or purchase of the RFNBOs produced under the scheme, with State resources (€2.7bn from Germany and €300m from the Netherlands), filling the funding gap between the two prices.

In addition, the Commission has approved a €3bn French scheme to support industrial companies subject to the EU Emission Trading Scheme (ETS) in decarbonising their production processes for a period of 15 years. Projects from companies active in the chemistry, metals, building materials and agri-food sectors will be selected through an open competitive bidding process and will be ranked on the basis of the lowest aid amount requested per tonne of CO₂ emissions avoided thanks to electrification, carbon capture and storage (CCS), carbon capture and use (CCU), and energy efficiency measures. The scheme is expected to bring over 60 MtCO₂eq savings over its 15-year duration.