An industrial company has developed an innovative, low-carbon way to run an energy-intensive production process. The technology is proven in principle, but proving it at a real, first-of-a-kind scale needs a large investment, and the additional cost over a conventional plant is exactly what makes such a pioneering project hard to justify commercially on its own.
The EU Innovation Fund is one of the largest funding programmes for the first commercial deployment of innovative low-carbon and clean technologies, financed from revenues of the EU emissions-trading system. It gives large grants, typically several million euros and up, to first-of-a-kind projects that cut emissions, covering up to 60% of their relevant costs: capex plus ten years of operating costs, minus revenues. It targets projects that are innovative and at a meaningful scale, in fields such as energy-intensive industry, renewables, energy storage and carbon capture and use. It suits a company taking an innovative low-carbon technology from a proven concept to a real demonstration.
A first-of-a-kind low-carbon demonstration with a strong emissions reduction is exactly what the EU Innovation Fund is for. The grant covers up to 60% of the project's relevant costs, its capex plus ten years of operating costs net of revenues, and on a demonstration of this scale it comes to about €15 million. That share is what bridges the gap between a proven concept and a project a company can actually commit to building.
The EU Innovation Fund runs through calls, usually with categories by project size. A project is assessed competitively against a clear set of criteria: the greenhouse-gas emissions it avoids, the degree of innovation over existing technology, the maturity of the project and its readiness to be built, the potential to scale and replicate, and the cost efficiency of the support requested per tonne of CO2 avoided. The grant is tied to the project's relevant costs, by default its capex plus ten years of operating costs net of revenues, so a clear, well-evidenced calculation of those costs and of the emissions avoided is central to a strong application.
A €15M EU Innovation Fund grant.
The grant makes a first-of-a-kind demonstration viable that would otherwise have stalled on its additional cost. The company proves its low-carbon process at a real scale, cutting emissions and creating a reference for the technology that lowers the risk of the next plants that follow it.
EU Innovation Fund · up to 60% of relevant costsFor an innovative, first-of-a-kind low-carbon demonstration at scale, the EU Innovation Fund can fund up to 60% of the relevant costs, the gap that usually stops pioneering decarbonisation projects from being built. It is aimed precisely at the projects whose value is partly that they prove the way for others.
More on EU Innovation Fund: The guide EU Innovation Fund: funding and application explains the programme step by step. How we support your project is covered under EU Innovation Fund consulting.
The questions we hear most. Short answer first, detail after.
First-of-a-kind commercial projects with innovative low-carbon and clean technology, financed from revenues of the EU emissions-trading system. It gives large grants to first-of-a-kind projects that cut emissions, covering up to 60% of their relevant costs.
Typically several million euros and up, depending on the size of the project, with the grant covering up to 60% of the project's relevant costs.
By default the project's capex plus the present value of its operating costs over the first ten years of operation, minus revenues and operational benefits. The fund covers up to 60% of that; a comparison with a conventional reference plant is only a fall-back you have to document.
To a specific call, usually with project-size categories. Selection is competitive, weighing greenhouse-gas avoidance, the degree of innovation, project maturity, scalability and cost efficiency.
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