EU approves €500m Romanian biofuel investment scheme

The European Commission has approved a €500 million (RON 2.5 billion) investment scheme in Romania aimed at enhancing production capacities for advanced biofuels.

This initiative falls under the State Aid Temporary Crisis and Transition Framework (TCTF), which was adopted on March 9, 2023, and subsequently amended.

Financed through the EU Modernisation Fund, the scheme will provide direct grants to support investments in targeted advanced biofuels, including bioethanol, sustainable aviation fuel, and hydrotreated vegetable oil.

The measure is expected to significantly reduce greenhouse gas emissions while minimising the impact on agriculture compared to traditional biofuels derived from food crops.

The Commission determined that the Romanian scheme complies with TCTF conditions, specifically stating that it will accelerate the rollout of renewable energy and contribute to the EU’s climate and energy objectives. Additionally, the aid will respect the maximum intensity limits and must be granted by December 31, 2025.

The approval underscores Romania’s commitment to facilitating the green transition and supporting economic activities vital to the REPowerEU Plan, aligning with EU state aid regulations.

Attribution: The European Commission

Subediting: M. S. Salama