Ministerial Decree March 2nd 2018

Italian Government issued the Decree of the Ministry of Economic Development of March 2nd 2018, introducing a support scheme for biomethane injected into the natural gas grid and for advanced biofuels to be used in the transport sector. The measure specifies that the sub-target for advanced biofuels must be fulfilled for 75% by biomethane and for 25% by other advanced biofuels. The respective shares will be reviewed every two years. The Decree applies to production plants starting operations between 2018 and 2022, and to plants already supported under the Ministerial Decree December 5th 2013, that opt for the provisions of the new Decree. The scheme is also open to existing plants for the production of biogas which are converted, partially or totally, in plants for the production of advanced biomethane between 2018 and 2022. Only biomethane injected into the natural gas grid can access to the support mechanisms. Grids are all the networks, transport and distribution systems, including: transport and distribution networks of natural gas whose managers have an obligation to connect third parties, other transport networks, transport systems using cylinder trucks, natural gas distributors for transports, even if not connected to the networks of transport and distribution.The Decree provides measures for:biomethane injected into the natural gas grid without a specific intended use - Guarantees of Origin (art. 4). Biomethane injected into the natural gas grid to be used in the transport sector (art. 5)Advanced biomethane injected into the natural gas grid with the obligation to connect third parties (art. 6) Advanced biofuels, different from biomethane (art.7).The total amount of biomethane that can access to the provisions of the Decree is 1.1 billion SmC/year.Consumers will not bear the cost of the incentives under the Decree, as the scheme is fully financed by transport fuel retailers ("Soggetti obbligati").In order to access to the measures provided by the Decree, the producers must first qualify with the GSE (the National Agency in charge of managing all the support schemes for RES deplyment) according to a specific procedure.

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