-- The European Commission said Tuesday it approved a 3.7 billion euro ($4.37 billion) Czech biomethane scheme to support EU clean energy targets.
The European Commission approved the program to fund biomethane production facilities, aligning with the Clean Industrial Deal and supporting the region's transition toward a low-carbon economy, it said.
The scheme is expected to add capacity of about 350 million standard cubic meters of sustainable biomethane, according to the European Commission.
The support will be provided through a direct price mechanism using a two-way contract for difference, granting biomethane producers payments per megawatt-hour based on a fixed strike price over a 15-year period.
Under the system, the state will compensate producers when gas prices fall below the strike level, while companies will repay the difference when prices rise above it, the commission said.
Projects will be awarded through a competitive tendering process, according to the European Commission.
The Commission said the scheme complies with Clean Industrial Deal State Aid Framework rules, citing its clear budget, defined output targets, and market-based design.
Executive Vice-President Teresa Ribera said the 3.7 billion euro scheme will expand EU biomethane output for transport and heating, helping the Czech Republic reduce emissions.
She added that the measure will support a cleaner, more secure, and competitive energy system while maintaining a level playing field.