Hengeler Mueller represents Landwärme in proceeding on aid scheme for biomethane against the European Commission before the General Court

03. December 2020

Landwärme GmbH, a leading German biomethane trader, is taking legal action against the European Commission's approvals of Swedish biogas state aid schemes (GC Case T-626/20 – Landwärme v Commission).

Sweden grants aid for the usage of biogas for heating and as fuel. These state aid schemes were approved by the Commission on 29 June 2020. The Swedish schemes allow for a combination with biomethane support schemes of other member states. In the view of Landwärme, this leads to an overcompensation of the beneficiaries and a distortion of competition when, for example, Danish biomethane is imported into Sweden. The Commission has not considered this distortive effect in its approval decisions.

Landwärme believes that a minor correction of the current legal framework could minimise the restrictive effect on competition and strengthen the European biomethane market.

Hengeler Mueller represents Landwärme in the proceeding seeking the annulment of the Commission's approval decisions. The team includes partner Jan Bonhage and senior associate Malte Frank (both State Aid and Subsidies, Berlin).