Innovation Fund: €3.45B for 37 Clean Tech Projects Boosting EU’s Energy Transition

In a significant milestone for Europe’s clean energy transition, 36 large-scale projects, selected in July 2023 through the third call for such initiatives, have officially signed their grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA). Additionally, one project from the reserve list of the previous call has also secured funding. Collectively, these 37 projects are set to receive approximately €3.45 billion in grants, sourced from the revenues generated by the EU Emissions Trading System.

The selected projects represent a diverse array of sectors, spanning wind energy, ocean energy, component manufacturing for electrolyzer production, renewable energy such as solar PV and energy storage, non-ferrous metals, iron and steel, renewable hydrogen, cement and lime production, chemicals, refineries, and carbon capture, utilization, and storage. This strategic selection aligns with the REPowerEU policy priorities, emphasizing industrial electrification, hydrogen, clean technology manufacturing, and mid-sized pilot ventures.

Beyond their impact on greenhouse gas emissions, these projects serve as compelling case studies for the viability of clean technologies, reinforcing their role in achieving the EU’s climate and energy objectives. Notably, they contribute to the pursuit of renewable hydrogen production and bolstering EU industrial value chains in the manufacturing of components for renewable energy generation facilities.

For more detailed insights into these projects and ongoing initiatives, stakeholders can explore the interactive Innovation Fund dashboard, featuring comprehensive project factsheets with descriptions and key performance indicators.

The Innovation Fund remains steadfast in its commitment to supporting European competitiveness and the transition toward climate neutrality. It does so by deploying an increased budget and introducing new funding instruments through two recently launched calls: the €4 billion IF23 Call for proposals, accepting applications until April 9, 2024, and the €800 million IF23 first European Hydrogen Bank auction, which concludes on February 8, 2024.

Against the backdrop of intense competition, 239 project proposals vied for EU funding in the third call for large-scale projects, which closed on March 16, 2023. In addition to the 37 projects that have formally inked grant agreements, two more are in the final stages of grant agreement preparations. Regrettably, three projects withdrew during this process. However, the funds made available as a result of these withdrawals will be allocated to projects on the reserve list, wherever feasible.

With an estimated €40 billion in revenue anticipated from the EU Emissions Trading System between 2020 and 2030, the Innovation Fund serves as a critical financial incentive for investments in cutting-edge low-carbon technologies. This pivotal initiative plays an indispensable role in driving Europe’s transition towards climate neutrality, having already allocated approximately €6.5 billion to over 100 highly innovative projects.

Leave a Reply

Your email address will not be published. Required fields are marked *