EC approved Italian support scheme for advanced biomethane

The Italian scheme supports the production and distribution of advanced biofuels and advanced biomethane for use in the transport sector. The long-attended scheme will give a major kick to the biomethane development in Italy. It has an indicative budget of €4.7 billion and will run from 2018 until 2022. The producers of advanced biomethane and biofuels receive a premium which allows them to compensate for the higher costs and compete with fossil fuels in the transport sector. The premium can be increased if producers invest in liquefaction of advanced biomethane. The premium will be adjusted each year in relation to the production costs to avoid overcompensation. The scheme will also incentivize farmers to produce biofuel and biomethane from manure and other residues originating from their farming activities and use them in turn to power their agricultural machines and vehicles. The scheme will be financed by transport fuel retailers who are obliged by law to include a certain percentage of advanced biofuels and biomethane in their fuel blends.

Source: Newsletter IEA Bioenergy Task 37: 07/2018
More information: European Commission