EC approves Italian EUR-4.7bn advanced biofuels support scheme

European Commission. Author: S├ębastien Bertrand. License: Creative Commons, Attribution 2.0 Generic.

March 2 (Renewables Now) - The European Commission (EC) on Thursday announced approval for a support scheme in Italy for the production of advanced biofuels, including advanced biomethane.

The scheme, which has now been approved under EU state aid rules, has an indicative budget of EUR 4.7 billion (USD 5.8bn) and will be in place in the period from 2018 until 2022. It will be financed by transport fuel retailers that have a legal obligation to include a percentage of advanced biofuels and biomethane in their fuel blends.

Advanced biofuels and biomethane are the most sustainable and environmentally friendly biofuels but have much higher production costs than fossil fuels, the EU said. The scheme will provide producers of these fuels with a premium to compensate for the higher costs and compete with fossil fuels in the transport sector. The premium will be updated every year. Producers can get an increased premium if they invest in improving the distribution and liquefaction of advanced biomethane.

The policy will also stimulate farmers to produce biofuel and biomethane from manure and other farming residues and use them to power their agricultural machines and vehicles.

(EUR 1 = USD 1.229)

Join Renewables Now's free daily newsletter now!

More stories to explore
Share this story
Tags
 
About the author
Browse all articles from Plamena Tisheva

Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription
\