The European Commission has unveiled the Innovation Fund for 2023, earmarking €4 billion to advance decarbonisation technologies. With a focus on cleantech manufacturing, including renewable energy, energy storage, heat pumps, and hydrogen production, the fund doubles its allocation for projects with capital expenditure (CAPEX) exceeding €2.5 million.
The announcement closely follows the European Parliament's approval of the Net Zero Industry Act (NZIA), signaling a commitment to onshore manufacturing for renewable energy technologies like solar PV and energy storage.
The Innovation Fund will be distributed across five categories, each with varying budgets and CAPEX criteria. Large-scale projects, with a CAPEX above €100 million, will have access to a €1.7 billion budget. Medium-scale and small-scale projects will receive €500 million and €200 million, respectively, with CAPEX ranges of €20 to €100 million for medium-scale and €2.5 to €20 million for small-scale projects.
Additionally, €1.4 billion is allocated to cleantech manufacturing projects, while a €200 million fund targets pilot projects with a CAPEX above €2.5 million, emphasizing deep decarbonisation efforts.
The European Commission's Innovation Fund offers coverage for up to 60% of a project's relevant costs, contingent on criteria such as emission reduction potential, innovation, maturity, replicability, and cost efficiency.
Wopke Hoekstra, Commissioner for Climate Action, highlighted the Innovation Fund as a pivotal tool supporting European industries in transitioning to climate neutrality. He emphasized the fund's role in bringing forth the most promising projects, aligning climate imperatives with economic opportunities.
Previous recipients of the fund include REC Solar's 2GW heterojunction solar manufacturing plant in France and Enel Green Power's 3GW bifacial heterojunction module manufacturing plant in Catania, Italy.
Applicants have until April 9, 2024, to submit projects through the EU Funding and Tenders Portal. Successful projects will be announced in Q4 2024, with grant agreements anticipated in Q1 2025.
