Aid for gas-intensive industry: what does it consist of?

The Spanish Government will allocate 950 million euro to offset the high price of natural gas to those companies that consume a lot. It will also promote a new strategic project (PERTE) for industrial decarbonisation.

The Executive will implement different measures in 2023 to help the gas-intensive industry to reduce the additional costs derived from the increase in the price of natural gas during 2022, as a result of the war in Ukraine.

This was agreed by the Council of Ministers, at the same time as the PERTE for industrial decarbonisation was also approved to support this sector in its transition towards more environmentally friendly models and processes and contribute to the objective climate neutrality by 2050.

What is the gas intensive industry?

The gas-intensive industry is defined as that which consumes a high amount of natural gas in its production processes. Some examples are the manufacture of ceramics, glass, paper and cardboard.

The exceptional increase in the price of gas in 2022 has had a negative impact on the production and competitiveness of this sector, which in many cases is resorting to ERTEs to maintain employment.

What help can you receive?

The Line of Guarantees of Ukraine managed by the Official Credit Institute (ICO), created to alleviate the increase in the prices of energy, raw materials or electricity in companies and the self-employed, will have a specific section of 500 million euro for the gas intensive industry. The beneficiary companies will have loans with a guarantee of up to 90% to mitigate their current liquidity problems and advance in decarbonization and energy efficiency.

Specific line of 450 million euro

The Ministry of Industry, Commerce and Tourism will articulate a line of direct aid endowed with 450 million euro within a maximum period of six months. The facilities or industrial sectors that may receive them appear in this list of Royal Decree-Law 20/2022, of December 27.

What are the objectives of the PERTE for industrial decarbonisation?

With the European funds from the Recovery Plan, a strategic project (PERTE) will be launched in 2023 for the decarbonisation of the industry, which will serve to finance the necessary investments to advance energy efficiency in this sector.

It is expected:

  • A public investment of 3,1 billion euro that will allow the mobilisation of up to 11,8 billion euro of total investment
  • An increase in the competitiveness of the sector by around 10%
  • The creation of some 8,000 jobs
  • A reduction in emissions that could reach 13 million tons of CO2 per year

Who is the PERTE for industrial decarbonisation addressed to?

The beneficiaries are the sectors of the manufacturing industry, among which the manufacture of non-metallic mineral products (including ceramics, cement, glass, among others), the chemical industry, oil refining, metallurgy, and paper and pulp manufacturing stand out. To these are added the large combustion facilities in other sectors, with special relevance in the food and beverage industry.