ABOUT THE CALL

The call targets projects on low-carbon technologies and processes in all sectors covered by Directive 2003/87/EC (the EU ETS Directive):

Innovation in low-carbon technologies and processes in sectors listed in Annex I, including environmentally safe carbon capture and utilisation (‘CCU’) that contributes substantially to mitigating climate change,as well as products substituting carbon intensive ones produced in sectors listed in Annex I, environmentally safe capture and geological storage (‘CCS’) of CO2, and innovative renewable energy and energy storage technologies.

OBJECTIVES

The objectives for large scale projects are to:

• support projects demonstrating highly innovative technologies, processes or products, that are sufficiently mature and have a significant potential to reduce greenhouse gas emissions;
• offer financial support tailored to market needs and risk profiles of eligible projects, while attracting additional public and private resources;

The objectives for small scale projects are to:

• support small-scale projects demonstrating highly innovative technologies, processes or products, that are sufficiently mature and have a significant potential to reduce greenhouse gas emissions;
• offer financial support tailored to market needs and risk profiles of eligible projects, while attracting additional public and private resources;
• complement the large-scale call by targeting smaller-scale projects, thereby offering another opportunity, in particular for small and medium-size companies to have their project supported;

ACTIVITIES FUNDED

The following activities can be funded in the context of large scale projects:

• activities that support innovation in low-carbon technologies and processes in sectors listed in Annex I to the EU ETS Directive, including environmentally safe carbon capture and utilisation (CCU) that contributes substantially to mitigating climate change, as well as products substituting carbon intensive ones produced in sectors listed in Annex I to the EU ETS Directive,
• activities that help stimulate the construction and operation of projects that aim at the environmentally safe capture and geological storage of CO2(CCS),
• activities that help stimulate the construction and operation of innovative renewable energy and energy storage technologies.

Carbon capture and utilisation can be funded if the capture of CO2 occurs within one of the activities listed in Annex I of the EU ETS Directive, or if the utilisation of CO2 results in products substituting carbon intensive ones from the sectors listed in Annex I to the EU ETS Directive even if carbon is captured outside the activities of Annex I.

The following activities can be funded in the context of small scale projects:

• activities that support innovation in low-carbon technologies and processes in sectors listed in Annex I to the ETS Directive, including environmentally-safe carbon capture and utilisation (CCU) that contributes substantially to mitigating climate change, as well as substitute products;
• activities that help stimulate the construction and operation of projects that aim at the environmentally-safe capture and geological storage of CO2 (CCS);
• activities that help stimulate the construction and operation of innovative renewable energy and energy storage technologies;

ELIGIBILITY AND ADMISSIBILITY CONDITIONS

The Innovation Fund (IF) supports projects in energy intensive industries, carbon capture and utilisation (CCU), carbon capture and storage (CCS), energy storage and renewable energy. 

The projects concerning the activities listed above are eligible for funding. Applicants will specify the sector their project belongs to in the application form. Further guidance on how to select the most appropriate sector is given in Annex C Methodology for GHG emission avoidance calculation. The applicants will be required to demonstrate the eligibility of the projects by providing the required information on the activities in the application forms.

The methodologies for the calculation of the GHG emission avoidance are described in the following sections: 

• Energy intensive industries, including carbon capture and use, and substitute products
• Carbon capture and storage
• Renewable energy, including manufacturing plants for components
• Energy storage, including manufacturing plants for components. 

Each section details the methodology to be used when: 

• applying for an Innovation Fund grant at first and second stage; 
• reporting performance for the purposes of disbursement of 60% of the grant that is linked to GHG emission avoidance; and 
• reporting performance for the purposes of knowledge-sharing.

ELIGIBLE APPLICANTS

In order to be eligible for funding, the applicants must be:

• legal persons
• belong to one of the following categories: private entities, public entities, or international organisations
• be directly responsible for the implementation and management of the project where relevant jointly with other applicants, i.e. not acting as an intermediary. 

The minimum number of applicants is one.

For multi-applicant proposals, the project coordinator will have to confirm its mandate to act for all applicants, that the information in the application is correct and complete and that all the applicants comply with the conditions for receiving EU funding (especially eligibility, financial and operational capacity, exclusion, etc.). Before signing the grant, the entities participating will have to sign a consortium agreement among themselves.

CO-FUNDING

Funding rate is up to 60%.

For large scale projects, only projects with a total capital expenditure above EUR 7 500 000 are eligible, while small scale projects must have a minimum total expenditure of EUR 2 500 000 and a total capital expenditure below EUR 7 500 000.

The grants will be provided as lump sums.