The Surveillance Authority of the European Free Trade Association (EFTA) (ESA) has adopted today a positive decision on the grant of a direct aid to Finnfjord AS in favour of the installation of energy recovery measures. The financing of the measure originates from the Norwegian Energy Fund. The latter has been previously validated by ESA in 2006 and prolonged once in 2010.
The present aid amounts to NOK 175 million (EUR 21.3 million) and was notified to ESA in October 2010. It was subject to a detailed assessment under the State Aid Guidelines for Environmental Protection.
While the text of the decision is not yet available, the press release from ESA sets the general reasoning of the decision as follows:
"Finnfjord is one of Europe's leading producers of ferrosilicon. Finnfjord also produces microsilica which is a by-product of the ferrosilicon production process. The production process generates a lot of heat. Currently, this heat is not used for energy production or any other useful purpose. The aid will enable Finnfjord to install an energy recovery system to generate 224 GWh of electricity and 125 GWh of steam per year. The electricity will be used in Finnfjord's production process, while the steam is to be sold.
...
The Authority has found that the positive effect of increasing energy savings outweighs the limited effect on trade and competition. The aid is proportional as it is limited to the amount necessary to trigger the investment. The aid also provides an incentive effect since the project would not be commercially viable without the aid. Finally, the structures of the ferrosilicon and microsilica markets are unlikely to be altered by the grant of aid."
Reference: Press release, EFTA Surveillance Authority, 09.02.2011.
Comments