Commission approves EUR 350 million German State aid for Synthetic Aviation Fuels
Today, the European Commission has approved a EUR 350 million German State aid to support Concrete Chemicals GmbH for the production of synthetic aviation fuels. The measure concerns a direct grant to help in the construction and installation of a plant in Rüdersdorf, Germany.
The project will use renewable electricity, hydrogen, and biogenic CO2 from a cement plant to produce approximately 30,000 tonnes of synthetic kerosene (PtL-kerosene) annually, classified as a renewable fuel of non-biological origin. The plant is set to begin operations in 2028, achieving a 90% reduction in lifecycle greenhouse gas emissions compared to fossil fuels.
The Commission has approved the measure under Article 107(3)(c) TFEU and the 2022 Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’). It has concluded that the support to the production of renewable synthetic aviation fuels aligns with EU policy goals like the European Green Deal and ReFuelEU Aviation. In addition, the Commission has positively valued the ‘incentive effect’ of the aid as the investment would not occur without public support. The aid is deemed necessary, appropriate, and proportionate to financing needs, with safeguards like a claw-back mechanism and knowledge sharing to limit competition distortions. Overall, the measure’s benefits outweigh potential trade or competition impacts within the EU.
For more information, see the PR.