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Commission approves €500 million Romanian state aid scheme to support investments in biofuel production capacity to foster the transition to a net-zero economy

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The European Commission has approved a €500 million (RON 2.5 billion) Romanian scheme to support investments in new production capacities of biofuels. 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.

Under the scheme, which Romania intends to finance through the EU Modernization Fund, the aid will take form of direct grants. The measure will support investments in new production capacities of targeted advanced biofuels, namely bioethanol, sustainable aviation fuel and hydrotreated vegetable oil. By supporting advanced biofuels, the measure will bring significant reductions in greenhouse gas emissions, while limiting the impact on agriculture compared to conventional biofuels produced from food crops.

The Commission found that the Romanian scheme is in line with the conditions set out in the TCTF. In particular, the aid (i) will support the accelerated rollout of renewable energy and thereby contribute to achieving the EU's climate and energy targets; (ii) will respect the maximum aid intensity; and (iii) will be granted no later than 31 December 2025. The Commission concluded that the Romanian scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the REPowerEU Plan, in line with Article 107(3)(c) Treaty on the Functioning of the European Union and the conditions set out in the TCTF.

On this basis, the Commission approved the Romanian scheme under EU state aid rules. 

The non-confidential version of the decision will be made available under the number SA.115993 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved. 

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