European Commission approves $4.3B for Czech biomethane support scheme
In Belgium, the European Commission has approved a €3.7 billion Czech scheme to support the construction of biomethane production stations in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.
The scheme will support new capacity in both newly-built biomethane stations and existing biogas stations that are converted into biomethane stations. The scheme will be open to biomethane producers holding a gas production licence in the Czechia. To qualify for aid under the scheme, biomethane production must comply with the requirements set out in the EU Renewable Energy Directive. The measure is expected to benefit mostly small and medium-sized farms.
The aid will take the form of a direct price support scheme, with a two-way contract for difference that provides a bonus for each MWh of biomethane produced for a duration of 15 years, based on a so-called strike price. If market prices of natural gas are lower than the strike price, the State will pay the producers. If they are higher, the companies will pay back the difference. The beneficiaries will be selected through a competitive tendering procedure.
Category: Fuels
