European Commission OKs $117.5M Dutch state aid scheme for maritime biofuels
In Belgium, the European Commission has approved a €103 million State aid scheme by the Netherlands to accelerate the greening of the Dutch maritime fleet. The scheme will support the purchase of new clean and zero-emission vessels powered by renewable methanol or renewable hydrogen and the retrofitting of existing vessels to enable them use renewable methanol and renewable hydrogen. It covers different types of vessels, including passenger, cargo and work vessels, mainly operating in the short-sea shipping segment. The support will take the form of direct grants awarded under an open, transparent and non-discriminatory selection process.
The scheme aims to help companies overcome high upfront investment costs and limited market incentives that currently slow the uptake of clean shipping technologies. The aid will be granted between 2027 and 2031 and will help bridge the investment gap in line with the objectives of EU legislation such as the FuelEU Maritime and the EU Emission Trading System.
The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU and the 2022 Climate, Environmental Protection and Energy Aid Guidelines (CEEAG). The Commission concluded that the scheme is necessary and appropriate as the supported investments would not take place without public support at the same scale and within the same timeframe. The measure is also proportionate as it has limited effects on competition and trade in the internal market.
Category: Policy
