The European Commission has approved a €1bn Portuguese scheme to support investments for the production of equipment necessary to foster the transition towards Net Zero.
The scheme was approved under the State aid Temporary Crisis and Transition Framework (TCTF).
The measure will be open to companies producing relevant equipment, including electrolysers and equipment for carbon capture usage and storage (CCUS).
Margrethe Vestager, Executive Vice-President in charge of competition policy, said the aid was in line with the objectives of the Green Deal Industrial Plan and the EU’s climate neutrality target.
The TCTF covers three categories of aid – accelerating the roll out of renewable energy, facilitating decarbonisation of industrial processes and investing in key sectors for the transition – which can be granted by Member States until 31st December 2025.
Portugal was among the first countries to set a target for carbon neutrality by 2050, and its Roadmap for Carbon Neutrality shows a strong commitment to electrifying its economy.
A previous goal to reach 80% renewable energy in its electricity production has been brought forward four years to 2026, potentially enabling neutrality to be reached by 2045.
These measures are backed by a strong focus on reducing dependency on energy imports and maintaining affordable access to energy. In the longer term, Portugal is aiming for hydrogen to play a major role in achieving carbon neutrality, according to the IEA.
Its National Hydrogen Strategy sets a goal for hydrogen produced from renewable energy to cover 1.5-2% of Portugal’s energy demand by 2030.
