Commission approves €3.7 billion Czech state aid scheme for sustainable biomethane production

The European Commission has approved a €3.7 billion Czech scheme to support the construction of biomethane production stations in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025. The scheme is expected to support installations with a total output of 350 million standard cubic meters of sustainable biomethane, which contributes to the objectives of the Clean Industrial Deal.

The aid will take the form of a direct price support scheme, with a two-way contract for difference that provides a bonus for each MWh of biomethane produced for a duration of 15 years, based on a so-called strike price. If market prices of natural gas are lower than the strike price, the State will pay the producers. If they are higher, the companies will pay back the difference. The beneficiaries will be selected through a competitive tendering procedure.

The Commission found that the Czech scheme is in line with the conditions set out in the CISAF. In particular, the aid will be granted based on a scheme with a clear estimated volume and budget, and the aid will be provided as direct price support through a two-way contract for difference, which will be awarded via a competitive bidding process.

A Clean, Just and Competitive Transition Executive Vice President Teresa Ribera (pictured) said: “With this €3.7 billion scheme Czechia will boost the EU's production of sustainable biomethane that will be used for transport and heating. It will also help Czechia meet its emissions reduction target. The measure will contribute to a cleaner, more secure and more resilient energy mix, while preserving a level playing field and minimising potential distortions of competition.''

A press release is available online.

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