European Commission: Commission approves Finnish investment aid to NordFuel and Veolia for the construction of advanced biofuels plants in Finland

The European Commission has approved, under EU State aid rules, two support measures for the construction of advanced biofuels plants in Finland. More specifically, the Commission has approved the following 2 investment aid measures notified by Finland: (i) €24.5 million in favour of NordFuel, to support the construction of an advanced biofuel demonstration plant; and (ii) €9.5 million in favour of Veolia, to support the construction of a biomethanol demonstration plant. The objective of the measures is to increase the production of advanced biofuels and biogas for transport.

The Commission assessed the 2 measures under EU State aid rules, in particular the Guidelines on State Aid for environmental protection and energy. The Commission found that the measures are necessary and appropriate to promote the production of advanced biofuels. In addition, the aid will be limited to the minimum necessary and will not exceed the aid intensity limits set out in the Guidelines. Finally, the 2 measures will only support plants producing advanced biofuels that meet the sustainability criteria, as required by the revised Renewable Energy Directive (RED II). On this basis, the Commission concluded that the measures will support projects promoting sustainable biofuels, in line with the European Green Deal, without unduly distorting competition in the Single Market. Therefore, the Commission approved the measures under the EU State aid rules.

The non-confidential version of the decision will be made available under the case number SA.58416 (NordFuel) and SA.62154 (Veolia) in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.