The Swedish government has submitted applications to the European Commission for extended state aid approval for tax exemption for biogas and bio-liquefied petroleum gas (LPG). The application is for a period of ten years."This is truly a welcome message and positive news for the industry, says Maria Malmkvist, CEO of the Swedish Gas Association (Energigas Sverige).
The current state aid approval for biogas tax exemption expires December 31, 2020, and many within the Swedish biogas industry sector have held the extended tax exemption as one of the most important measures to have in place for the biogas market in Sweden to continue to develop.
We have been working for this for a long time. The uncertainty associated with the current state aid approval that is nearing its end has led to some biogas investments being stuck in the planning stage. It is very gratifying that the government has applied for a new approval, now at least that is one uncertainty factor out of the world. The fact that bio-LPG is also included is very positive and can help it gain market momentum said Maria Malmkvist.
The applications that have been submitted to the European Commission concern state aid approval for exemption from the energy and carbon dioxide (CO2) tax components for biogas and bio-LPG used as fuel for transportation and heating, and which are not crop-based. Both applications are for ten years.
It is very good that the applications are valid for a full ten years, that is exactly what we wanted. A long-term perspective is crucial to getting investments in place. Our hope is that the applications will be approved by the European Commission, said Maria Malmkvist.
