The European Commission has approved a Danish state aid scheme worth DKK13bn (€1.74bn) to support the production of upgraded biogas and e-methane to be injected into the Danish grid. The scheme will support the construction of new biogas and e-methane plants and the expansion of existing ones, resulting in an estimated production of 7.9 PJ/year of renewable gaseq. The aid will be provided as a price premium per GJ of renewable gas produced, paid on top of the market price for natural gas, over a 20-year period. The aid will be awarded through competitive bidding rounds held from 2024 to 2030. The plants must be connected to the grid within three years after receiving the aid. The scheme is expected to reduce GHG emissions by approximately 450 ktCO2/year from 2033.
The scheme will contribute to the EU's climate targets in line with the European Green Deal, as well as the objectives of the REPowerEU Plan to reduce dependence on Russian fossil fuels and accelerate the green transition.

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