Tuesday, 10 January 2023
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On 21 December 2022, the European Court annulled the EC's approval of the Swedish state aid scheme for biomethane, which is eligible for an excise exemption, following action brought about by Landwärme GmbH. The court determined that beneficiaries of biomethane are overcompensated by the scheme due to cumulation with other support schemes, namely production subsidies, in other member states.
This has significant implications for Danish biomethane, which is unlikely to continue enjoying its competitive advantage in the Swedish market over biomethane from non-subsidised jurisdictions. While the actual impacts will depend upon if or how the scheme is amended, likely some Danish biomethane volumes currently slated for Sweden will instead be diverted to mainland Europe, which should ease upward pressure on European biomet...