- The EU will grant aid for green hydrogen and biomethane production with an estimated capacity volume and budget no later than 31 December 2025.
- The commission selects beneficiaries based on the strike price per MWh of renewable hydrogen or biomethane offered.
In line with the Green Deal Industrial Plan, the European Commission has approved a €140 million Portuguese scheme to support the production of renewable hydrogen and biomethane. The European Commission approved the scheme under the State Aid Temporary Crisis and Transition Framework, adopted by the commission on 9 March 2023 and amended on 20 November 2023. The scheme aims to support measures in sectors that are key to accelerating the green transition and reducing fuel dependencies.
Under the scheme, aimed to foster the transition to a net-zero economy, the aid will take the form of a variable premium under a two-way contract for difference concluded for ten years. The aid is awarded through a competitive bidding process where renewable hydrogen producers and biomethane producers compete separately. The commission selects beneficiaries based on the strike price per MWh of renewable hydrogen or biomethane offered in the bidding process. The commission said the Portuguese scheme aligns with the conditions set out in the Temporary Crisis and Transition Framework.
Notably, they will grant the aid based on a scheme with an estimated capacity volume and budget no later than 31 December 2025. Furthermore, according to the commission, the aid is subject to conditions to limit undue distortions of competition, including safeguards to guarantee the competitiveness of the bidding procedure. It concluded that the scheme is necessary, appropriate, and proportionate to accelerate the green transition and facilitate the development of certain economic activities essential to implementing the REPower EU Plan and the Green Deal Industrial Plan.