Grants for the deployment of decarbonization technologies

The Innovation Fund is the EU's climate policy financial resource, centered on energy and industry. Its objective is to introduce solutions to the market that reduce carbon emissions in EU industry and facilitate its shift towards climate neutrality.

It emphasizes unique, highly inventive initiatives that showcase technologies capable of attaining substantial emission reductions. The fund backs technologies, business models, and processes that are not yet available in the market but signify groundbreaking solutions or are adequately developed for demonstration at a pre-commercial level.

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Ildikó Ádám

EY Hungary, Partner, Business Tax, Grants & Incentives Services, Life Sciences Leader - CESA region

Initiatives showcasing exceptionally inventive technologies, process models, or products that are adequately developed and possess considerable potential to diminish greenhouse gas emissions, such as:

Advancements in low-carbon technologies and processes;
Recovery of waste heat and enhancements in energy efficiency within industrial processes and energy systems;
Environmentally safe carbon capture and its geological sequestration;
Creation of products that substitute carbon-heavy alternatives;
Cutting-edge technologies for renewable energy and energy storage;

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Establishment and functioning of manufacturing plants for the creation of specific components for:

Renewable energy: facilities generating components for photovoltaics, concentrated solar power, onshore and offshore wind energy, ocean energy, geothermal, solar thermal, and other renewable energy systems, including their integration into the electricity/heat grid.
Electrolyzers and fuel cells: production of electrolyzers and fuel cells for the generation and utilization of hydrogen.
Energy storage solutions: fabrication of batteries and other storage options for both stationary and mobile applications.
Development and manufacturing of heat pumps.

Qualified applicants

Individual private or public organizations and collaborations of multiple private and/or public entities.

Application deadline

TBD.

Budget per initiative:

Large-scale initiatives – exceeding EUR 100 million;
Medium-scale initiatives – exceeding EUR 20 million and up to EUR 100 million;
Small-scale initiatives – exceeding EUR 2.5 million and up to EUR 20 million;
Clean manufacturing and pilot initiatives – exceeding EUR 2.5 million.

Amount of the grant:

Up to 60% of the qualifying project expenses.

Project assessment criteria:

Level of innovation;
Potential for greenhouse gas emission reduction;
Project readiness (technical, financial, operational);
Scalability;
Cost-effectiveness.

Examples of initiatives funded by the Innovation Fund

Initiative to capture carbon on an industrial scale for lime manufacturing and to capture and permanently sequester the carbon dioxide released during production. The grant awarded is EUR 4 million. The project results in a reduction of 470,000 tons of CO2 equivalent, signifying a 78% decrease compared to emissions from the production of a traditional product.
Initiative to convert non-recyclable solid waste into hydrogen and supply a circular feedstock for the chemical sector. The grant awarded is EUR 100 million. The project's outcomes include the commencement of clean hydrogen production, prepared for future utilization or storage without requiring additional energy for capture.
Initiative to substitute liquefied natural gas (LNG) utilized for paper drying with biosynthetic gas produced from the gasification of a facility using wood waste. The grant awarded is EUR 7 million. The project's outcomes include savings in steam and heat energy required to manufacture 69,000 tons of paper annually.

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Our experts

Ildikó Ádám

EY Hungary, Partner, Business Tax, Grants & Incentives Services, Life Sciences Leader - CESA region

Ildikó Ádám is a distinguished Partner in the Business Tax, Grants & Incentives Advisory Services group at EY Hungary, based in Budapest. With several years of extensive tax and state aid advisory experience, she has established herself as a leading expert in the field, particularly within the pharmaceutical industry.

Budapest, Hungary

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