The European Commission said the EC has approved, under EU State aid rules, a Lithuanian scheme supporting certain biofuels.
According to the Commission, the scheme provides for aid in the form of direct grants for producers of bioethanol from cereals and of biodiesel from rapeseed. The scheme has a total budget of €54 million. It was originally approved for the period 2009-2017, and has now been prolonged until December 31, 2020.
The Commission said the EC found that the measure would help Lithuania reach its 2020 targets for renewable energy in transport, while limiting potential distortions of competition.
In particular, the Commission said the EC verified that the aid is limited to sustainable biofuels, provides an incentive to use more environmentally friendly fuel and is limited to the minimum necessary to compensate for the additional costs of biofuels.