Brussels, 12 July 2024
The European Commission has approved a €200 million Finnish scheme to support the production of renewable fuels of non-biological origin and the deployment of energy storage to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. The scheme was approved under the State aid Temporary Crisis and Transition Framework (‘TCTF’), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.
The scheme will be partially funded through the Recovery and Resilience Facility (‘RRF’) following the Commission’s positive assessment of Finland’s Recovery and Resilience Plan and its adoption by the Council.
The purpose of the scheme is to accelerate investments in the production of renewable fuels of non-biological origin and in the deployment of energy storage facilities, with a view to support the clean energy transition and reduce dependence on Russian fossil fuels. Under the scheme, the aid will take form of direct grants. The measure will be open to all sectors except the financial sector. The aid intensity will not exceed 45% of the investment costs of the projects.
The Commission found that the Finnish measure is in line with the conditions set out in the TCTF. In particular, the aid (i) is granted on the basis of a scheme with an estimated capacity volume and budget; (ii) is administratively set by the Member State based on data on the investment costs of each supported project; and (iii) will be granted no later than 31 December 2025.
The Commission concluded that the scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance to implement the REPower EU Plan and the Green Deal Industrial Plan, in line with Article 107(3)(c) TFEU and the conditions set out in the TCTF. On this basis, the Commission approved the scheme under EU State aid rules.
More information on the TCTF can be found here. The non-confidential version of the decision will be made available under the number SA.113693 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.