European Commission OKs Romania’s $550M aid scheme to boost biofuel investment

The European Commission has approved a €500 million aid scheme to support investments in new biofuel production capacities. The scheme was approved under Temporary crisis and transition framework (TCTF) for State aid measures, adopted by the Commission at March 9, 2023 and modified to November 20, 2023 and to May 2, 2024.

Under this scheme, which Romania intends to finance through EU Modernization Fund, the aid will be in the form of Direct grants. The move will support investments in new production capacities of advanced biofuels targeted, namely bioethanol, sustainable aviation fuel and hydrotreated vegetable oil. By supporting advanced biofuels, the measure will generate significant reductions in greenhouse gases while limiting the impact on agriculture compared to conventional biofuels produced from food crops.