Daily News 29 / 07 / 2024

Daily News 29 / 07 / 2024

Commission presents New European Bauhaus (NEB) Investment Guidelines to help investors align projects with NEB's transformative vision

Today, the European Commission has adopted the New European Bauhaus (NEB) Investment Guidelines, a tool to illustrate how public and private investments can integrate the values of sustainability, inclusion and aesthetics promoted by the NEB to transform Europe's built environment.

The guidelines provide investors and developers with best practices and quality guarantees to put the NEB into practice and boost investments that transform buildings, open spaces and neighbourhoods while incorporating aesthetical aspiration, commitment to sustainability and affirmation of social values, inclusion, affordability and accessibility.

The guidelines support the NEB's goals, helping shape projects that back the positive transformation of societies. All EU Member States are expected to go through large rounds of investments in the built environment to address challenges such as climate neutrality, adaptation to climate change, rapid urbanisation, response to humanitarian crises, as well as accessibility and affordability of sustainable high-quality housing, construction and renovation.

More information is available in the press release online.

(For more information: Adalbert Jahnz – Tel.: + 32 2 295 31 56; Maëlys Dreux – Tel.: +32 2 295 46 73)

Commission approves €998 million Dutch State aid scheme to support renewable hydrogen production

The European Commission has approved, under EU State aid rules, a €998 million Dutch scheme to support the production of renewable hydrogen. The measure aims to contribute to the development of renewable hydrogen in line with the objectives of the EU Hydrogen Strategy and the European Green Deal. The scheme will also contribute to the objectives of the REPowerEU Plan to reduce dependence on Russian fossil fuels and accelerate the green transition.

The scheme will support the construction of at least 200 MW of electrolysis capacity. The aid will be awarded through a competitive bidding process planned to be concluded in 2024. The tender will be open to projects with a capacity of at least 0.5 MW.

The aid will take the form of a direct grant combining an upfront investment grant up to 80% of the investment costs and a variable premium over a period of 5 to 10 years.

The scheme will contribute to the Netherlands's efforts to achieve 500 MW of electrolyser capacity in 2025 and 3-4 GW by 2030. It will also support the EU's ambitions to install at least 6 GW of renewable hydrogen electrolysers by 2024, and at least 40 GW by 2030. The Netherlands expects that the scheme will lead to the equivalent of around 55 kilotons of CO₂ being avoided every year until 2030, which will contribute to the Netherlands' and EU's climate targets.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Developing renewable hydrogen production is a key aspect of EU's climate neutrality goal. This €998 million Dutch scheme will help scaling up the production of renewable hydrogen in the Netherlands by providing support to electrolysers projects of all size, while ensuring that any potential competition distortions are kept to the minimum.”

A press release is available online.

(For more information: Francesca Dalboni – Tel.: +32 2 298 81 70; Nina Ferreira - Tel.: +32 2 299 81 63)

Commission opens in-depth State aid investigation into €321.2 million German measure to restructure Condor

The European Commission has opened an in-depth investigation to assess whether a German €321.2 million restructuring measure in favour of Condor is in line with EU State aid rules. The measure was initially approved in July 2021 by the Commission under the State aid Rescue and Restructuring Guidelines, but the Commission's decision was subsequently anNoneed by the judgment of the General Court of 8 May 2024.

In July 2021, the Commission approved a €321.2 million restructuring measure to enable Condor's return to viability. The restructuring measure consisted of: (i) €90 million debt write-off on a state-guaranteed €550 million public loan extended by the German development bank KfW, (ii) a restructuring of the repayment conditions of the remainder of that loan, to the extent it was used for financing restructuring costs, and (iii) a €20.2 million debt write-off on interest due by Condor in the context of coronavirus compensation it had received.

In its judgment of 8 May 2024, the General Court anNoneed the Commission's 2021 decision. The General Court considered that the Commission had not assessed whether Germany received sufficient remuneration for the debt write-offs granted to Condor. In particular, the Court held that the Commission should have assessed whether Germany received sufficient up-sides, which would ensure that former shareholders and subordinated debt holders sufficiently shared the burden of restructuring, in order to reduce the aid amount.

Following the General Court's judgment, the Commission will now further investigate the restructuring measure. In particular, the Commission will assess whether, and if so, to what extent, further burden sharing, and reduction of moral hazard was possible and required and whether this would have had an influence on the nature and size of the compensatory measures put in place. The opening of an in-depth investigation gives Germany, as well as interested third parties, the opportunity to submit comments. It does not prejudge in any way the outcome of the investigation.

A press release is available online.

(For more information: Francesca Dalboni – Tel.: +32 2 298 81 70; Nina Ferreira - Tel.: +32 2 299 81 63)

Commission approves €80 million Dutch State aid measure to support an innovative technology for the production of renewable hydrogen

The European Commission has approved, under EU State aid rules, a €80 million Dutch measure to support Djewels B.V., a subsidiary of the hydrogen company HyCC B.V., in the demonstration of an innovative renewable hydrogen production technology. The measure will contribute to the development of renewable hydrogen production in line with the objectives of the EU Hydrogen Strategy and the European Green Deal.

The project supported under the measure is a first of its kind in the EU and represents a significant innovation that goes well beyond the state of the art. In particular, the project aims at demonstrating the feasibility of producing renewable hydrogen with an alkaline electrolyser with high current density electrodes, high-pressure hydrogen output and a small spatial footprint. The innovative electrolyser will have a a capacity of 20 MW.

The beneficiary of the measure, Djewels, will own and operate the hydrogen production facility. The aid will take the form of a direct grant of €80 million, covering the expected funding gap of the project. As the actual funding gap of the project will depend on market developments, the measure foresees that, if the project turns out to be very successful, generating extra net revenues, the beneficiary will return to the Netherlands part of these extra revenues (‘clawback mechanism'). Moreover, the beneficiary will disseminate the technical know-how gained as a result of the project.

The construction of the electrolyser is expected to start in 2024, with the project expected to be operational as of 2027.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €80 million measure enables the Netherlands to support a demonstration project for the production of renewable hydrogen, while limiting possible distortions of competition. The innovative technology behind this project has the potential to contribute to the achievement of the EU Hydrogen Strategy and the European Green Deal ambitions across the EU.”

A press release is available online.

(For more information: Francesca Dalboni – Tel.: +32 2 298 81 70; Nina Ferreira - Tel.: +32 2 299 81 63)

Tentative agendas for forthcoming Commission meetings

Note that these items can be subject to changes.

Upcoming events of the European Commission

Eurostat press releases