The Innovation Fund is the largest fund in the world for the demonstration of innovative low-carbon technologies and so-called ‘flagship projects’ for significant emission reductions at the European level. Projects must relate to energy-intensive industries. The ultimate goal of the fund is to achieve the EU objectives of the Paris Climate Convention and to provide financial incentives towards a climate-neutral Europe in 2050.
The focus of the Innovation Fund is on the demonstration of new technologies, stimulating economic growth and competition and spreading innovation across all EU Member States. In addition, it stimulates projects that cross multiple sectors.
60% of the additional capital requirement and operating costs are subsidised, with the advantage that these amounts are allocated flexibly, based on the defined milestones.
The first opening of the Innovation Fund is expected in June 2020, followed by periodic openings. The information currently available is a pre-publication, details may change in subsequent publications.
- At least 1 entity, consortia are also allowed
- International consortia are not required.
- Private parties in the EU
Projects must fall within the following sectors:
- Innovative ‘low-carbon’ technologies and processes
- Carbon Capture and Utilisation (CCU)
- Carbon Capture and Storage (CCS)
- Innovative production of renewable energy
- Energy storage
- Expression of interest phase:
- Effectiveness of reducing greenhouse gas emissions (within 10 years after the start of the operational phase)
- Innovative content of breakthrough technologies
- Maturity of the project (if the latter is lacking, ‘project development assistance’ is possible)
- Full application phase: Above criteria, including scalability (market potential in 2050) and cost-effectiveness (in relation to greenhouse gas emission reductions). The technical, business and financial aspects of the project are assessed.
- Grant rate: Maximum 60% of additional capital requirement and operating costs
- Total budget: €10 billion (based on current CO2 prices
- Large-scale projects: No maximum
- Small-scale projects: Less than €7.5 million in costs
- The additional costs of demonstrating innovative technologies, processes or products that are sufficiently mature and have significant emission reduction potential. This is the difference between the best estimate of the total capital expenditure and the net present value of the operating costs and benefits for 10 years after the start of the project on the one hand and the result of the same calculation for conventional production on the other hand.
- The costs must fall within a maximum project duration of 4 years.
- Tender procedure with 2 stages: Expression of interest and full application
Expected deadlines 2020:
- Expression of Interest: September 2020
- Full application: 2nd quarter 2021
The purpose of this summary is to provide a quick insight into the purpose, design and conditions of the grant programme (as known on: 28-1-2020). No conclusions can be drawn on this basis and no rights can be derived from it. If you are interested or would like more information, please contact Evers + Manders Grant Advisors (033 – 253 4820).