Romania opens consultation on EUR 500m State Aid Scheme for Biofuels
The Romanian Energy Ministry opens public consultation for the EUR 500m State Aid Scheme supporting investments in biofuel production, including sustainable aviation fuel (SAF). The scheme will be funded by the Modernisation Fund.
The scheme intends to support biofuel production from raw materials eligible under Annex IX of the Renewable Energy Directive (RED).
Of the EUR 500m budget, EUR 400m is directed towards SAF and hydrotreated vegetable oil (HVO) production, targetting a minimum production level of 20,000 tons/year SAF and 90,000 tons/year HVO.
The funding will be available through non-refundable financing through reimbursement of eligible expenses, limited to 70% of the eligible costs of each project. Eligible expenses include investments, constructions and installations relating to the industrial process, assembly, machinery, technological and functional endowments, intangible assets and certain expenses related to the organization of the construction site. Operating expenses are not included.
A maximum of EUR 133.3m will be available to each SAF or HVO facility.
Funding recipients will be selected through a bidding process focusing on a projects ratio between the requested aid amount and the production capacity.
Projects will be expected to meet 50% of assumed capacity by the end of the first year after commissioning, 75% by the end of the second year and full operating capacity by the end of third year of operations.
The public consultation period ends on the 15th May 2026.