EC grants €11m aid for French biomass boiler


17 Nov 201074 Views

The European Commission (EC) has granted France an €11m grant for the construction of a biomass boiler.

The state aid, which is in line with EU rules as the "positive effects outweigh the potential distortions of competition", will provide France with the money to build a 43 megawatt (MW) boiler using renewable sources.

Commission vice-president in charge of competition policy, Joaquín Almunia, said: “The Beinheim biomass project will contribute to reaching the EU 2020 environmental objectives without unduly distorting competition.

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The boiler will partly replace the current capacity based on natural gas (76MW in total).

The Commission believes the boiler will encourage the diffusion of the biomass technology at a commercial scale and help with the reduction of CO2 – an expected annual CO2 savings of 75,000 tons compared to the use of natural gas – in the future.