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State Aid

State aid: Aid for Tizir Titan & Iron's demonstration project approved




Today, the EFTA Surveillance Authority approved a grant of up to NOK 122.7 million (approx. EUR 13 million) to Tizir Titanium & Iron AS for a demonstration project at the company's premises in Tyssedal, Norway.

Tizir Titanium & Iron produces titanium dioxide (TiO2) slag and high purity pig iron. A novel roof technology related to the smelting furnace is expected to result in both reduced energy consumption and reduced emissions of CO2 during the production process. The demonstration project will test the technology in full scale.

«The EFTA Surveillance Authority fully supports the development of environmentally friendly production processes within the EEA. If this new technology proves successful, it may be applied in the whole metallurgical industry and may contribute to important reductions in energy consumption and CO2 emissions», Mr. Sven Erik Svedman, president of the Authority, said.

The aid will be granted by Enova under the new technology programme, which forms part of the Energy Fund scheme as approved by the Authority in July 2011. The grant had to be individually notified to the Authority for a detailed assessment as the proposed aid amount exceeded a threshold of EUR 7.5 million.

In its assessment, the Authority concluded that the project suffers from a funding gap and would not be pursued absent the aid measure. Furthermore, the level of public funding is below the maximum aid intensity of 50% under the Energy Fund scheme. There are also mechanisms to prevent overcompensation in case the investment costs are subject to changes. Finally, the new technology will be available to third parties once it has been successfully verified in the demonstration plant. The Authority thus raised no objections to the proposed measure under the EEA state aid rules.

A non-confidential version of the decision will be published in the register of state aid decisions on the Authority's website, normally within a month.


For further information, please contact:

Mr. Andreas Kjeldsberg Pihl
Press & Information Officer
tel. (+32)(0)2 286 18 66
mob. (+32)(0)492 900 187


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