Commission approves staid aid for French-led research programme
The European Commission has authorised staid aid for a research programme on new, environmentally friendly products and processes involving four European countries. The French Agency for Industrial Innovation gave notice of the aid for the BioHub project earlier in 2006. The programme is led by starch supplier Roquette, and involves other companies from France, Germany, Belgium and the Netherlands. BioHub will develop new products from renewable raw materials and new production processes that use biotechnologies rather than petrochemicals. It will also look for new ways to reduce greenhouse gas emissions. 'The development of green chemistry and support for biotechnology are fundamental to competitiveness and sustainable growth in the European economy,' said EU Competition Commissioner Neelie Kroes. 'BioHub is adding to Community initiatives in the area.' The programme will require €88 million over five years. Some 50% of costs will be covered with the state aid, of which €21.5 million will take the form of grants and €20.3 million the form of repayable advances. The Commission took the view that the aid for the programme satisfies the conditions set out in the current framework for research and development (R&D) state aid. The aid scheme is also expected to have a significant incentive effect, encouraging companies to carry out more R&D than would otherwise have been possible. France's Agency for Industrial Innovation was set up in 2005. It selects, finances and assesses major strategic programmes with innovation as a major component. Programmes selected for funding involve large, industrial companies as well as small and medium sized enterprises (SMEs) and research laboratories.
Countries
France