The Commission approved the support 1 March, saying that it was in line with the EU’s rules on state-aid. The scheme will run from 2018 to 2022 to help the fuels compete with their fossil-based counterparts.

The funding is designed to allow producers of biomethane and advanced biofuels, who have significantly higher production costs, to compete with fossil fuel producers. It will be financed by transport fuel retailers who are obliged to blend a certain proportion of biofuels and biomethane into their fuels.

The premium paid to biofuel producers will be altered each year depending on operating costs to make sure that they are not over-compensated. Those who invest in improved distribution and liquefaction of biomethane will receive a higher premium... CONTINUE