Court asks EU court whether diesel harvester qualifies for state aid

The Regional Administrative Court will ask the Court of Justice of the European Union to clarify whether a diesel-powered harvester can qualify for state aid, LRT reported. The case concerns a complaint by forestry company Biržų miškų ūkis against a decision by the National Paying Agency not to fund the purchase of the machine.

The court is seeking an interpretation of the conditions for aid to equipment that operates using fossil fuel. It asked whether the European Union regulation’s reference to fossil fuel-powered energy installations covers all equipment using such fuel, including a harvester used for cutting forests.

The agency rejected the company’s application because the machine uses diesel fuel and therefore was not eligible for state aid. The agency considers the harvester to fall within the scope of the EU regulation.

The company disputes that interpretation, arguing that the harvester’s main purpose is mechanical forest cutting rather than energy production. It maintains that the use of diesel alone is not sufficient to classify the machine as a fossil fuel-powered energy installation.

The court said EU climate and energy policy aims to gradually phase out fossil fuels, which could support a broad interpretation of the term. However, a systematic assessment of the regulation has raised doubts about such a broad scope.

The Regional Administrative Court has suspended proceedings until the EU court issues its preliminary ruling.