The Ministry of Energy has opened a public consultation on a state aid scheme designed to support investments in biofuel production, with a total estimated budget of 500 million euros provided through the Modernization Fund. The scheme targets investments in the production of bioethanol, SAF (Sustainable Aviation Fuel), and HVO (Renewable Diesel). The public consultation period is 15 business days. Interested individuals and entities may submit comments and proposals to the email address [email protected].

The scheme’s estimated budget is divided into two main components. For bioethanol production capacity, 100 million euros is allocated, with a minimum target capacity of 50,000 tons per year. Another €400 million is earmarked for SAF and HVO production capacities, with a minimum target capacity of 20,000 tons per year for SAF and 90,000 tons per year for HVO.

State aid will be granted in the form of a non-repayable grant, through the reimbursement of eligible expenses incurred. The support may cover up to 70% of the eligible costs of each project. The maximum funding amount is €50 million per company for a bioethanol plant and €133.3 million per company for a SAF and HVO plant.

Beneficiaries will be selected through a competitive bidding process, and a key factor in the evaluation of projects will be the ratio of the requested state aid to the newly installed production capacity. The Ministry thus aims to encourage efficient projects with the highest possible own contribution and a low risk of overcompensation.

To be eligible, investments must involve newly installed capacity, be technically and economically feasible, and have a secure supply of the raw materials necessary for production. Funded investments must be completed and put into operation within a maximum of 48 months from the date the state aid is granted, but no later than December 31, 2030.

Beneficiaries will be required to reach the committed production capacity in stages. Thus, they must reach at least 50% of the committed capacity by the end of the first year of operation, at least 75% on average by the end of the second year, and 100% of the committed capacity by the end of the third year of operation.

The state aid scheme will take legal effect only after obtaining the approval decision from the European Commission and following the recommendation for investment funding from the Investment Committee of the Modernization Fund.