ANNOUNCEMENT 14 Aug 2014

On 14 August 2014, the Finish authorities approved aid supporting the construction of a second-generation biorefinery by a Finish company. Finland notified the European Commission of the financial support on 31 July 2015, which was then approved on 16 December 2015.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

European Commission, Letter to the Member State of 16 December 2015, State Aid SA.42776 (2015/N) – Finland Individual aid to biofuel plant (St1 Biofuels), published on 24 October 2017: http://ec.europa.eu/competition/state_aid/cases/259880/259880_1935214_145_2.pdf
European Commission state aid case SA. 42776, Support to the Finnish St1 biofuels plant: http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_42776

Inception date: 14 Aug 2014 | Removal date: open ended

Financial grant

Finland's aid to the Finish company St1 Biofuels Oy has a total value of EUR 12 million (USD 16 million). The Finish company is a subsidiary of the Finish company St1 Nordic Oy (100%). The aid supports St1 Biofuels Oy's construction of a second-generation biorefinery producing "advanced biofuels". More specifically the plant will produce bioethanol as well as lignin, furfural and turpentine as by-products and will be utilized for heat and power generation or sold on the market.

The Finish authorities approved the aid on 14 August 2014, however, the aid is allocated in phases incrementally with the completion of various stages of the construction project. The European Commission decided not to raise objections against the aid on 16 December 2015, however, the decision was first published on 24 October 2017.

In this context, the European Commission noted: "The Commission therefore considers that aid to advanced biofuel project does not result in undue distortive effects on competition and trade so that the overall balance is positive." and following concluded: "... the Commission considers that the notified aid measure pursues an objective of common interest in a necessary and proportionate way and that therefore the aid is compatible with the internal market on the basis of the EEAG."

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED SECTORS

 

AFFECTED PRODUCTS