European Commission approves Italian biomethane scheme

The expected green light from the European Commission has arrived for the scheme submitted by Italy to support the construction and operation of both new and converted biomethane production plants. 

The scheme is approved under state aid rules. The scheme will support the production of sustainable biomethane for injection into the national gas grid for use in transportation and final uses (both in residential and ‘industry, and in the tertiary sector).

The scheme notified by Italy will be in force until June 30, 2026 and will be partly financed by the Recovery and Resilience Facility. In the PNRR, we recall, 1.9 billion euros were allocated to support biomethane, agro-ecological measures related to the efficient use of digestate and the promotion of biomethane tractors. The draft decree notified by the Italian government provides for a percentage of the investment costs for the construction of biomethane plants and the conversion of existing ones to be covered by a grant. A fixed operating subsidy is also provided, in the form of a contract for difference, for 15 years.

While waiting to evaluate the contents of the notified text, we welcome the end of an interlocution with the Commission that has slowed down the desired process of biomethane development in agriculture. Also thanks to agricultural biomethane, Italy will be able to meet its greenhouse gas emission reduction targets, increase the percentage of energy production from renewable sources and increase its energy independence.  

We look forward to the rapid publication of the Biomethane ter Decree.