The European Commission has approved a Danish state aid scheme worth DKK 13 billion (USD 1.83 bn/EUR 1.74bn) to support the production of renewable gas for injection into the national grid.
The state aid will incentivise and boost production of upgraded biogas and e-methane, contributing to EU climate targets under the European Green Deal and the REPowerEU Plan, the EC said on Tuesday.
The Danish scheme will support the construction of new biogas and e-methane plants and the expansion of existing ones, resulting in an estimated production of 7.9 petajoules of renewable gases annually, according to the EU executive.
The aid will be provided as a price premium per gigajoule of renewable gas produced over a 20-year period and awarded through competitive bidding rounds held from 2024 to 2030. The plants must be connected to the grid within three years after receiving the aid.
The Commission said the scheme is expected to reduce greenhouse gas emissions by approximately 450,000 tonnes of CO2 annually from 2033. (December 17, 2024, Source: https://renewablesnow.com/news/ec-greenlights-eur-1-7bn-danish-state-aid-for-renewable-gas-production-1268250/)
DENMARK - BIOMETHANE - Production