Launch of the 2024 Innovation Fund call for Net Zero and Innovative Technologies  

On 3 December 2024, the European Commission launched the Innovation Fund 2024 calls for proposals. 

A special support is available under the "RFNBO Hydrogen Auction" call for proposals, which provides support for the production of non-biological renewable fuels (RFNBO) hydrogen through a competitive bidding mechanism (auction). The budget of the call is €1.2 billion, and bids can be submitted until 20 February 2025. The conditions to be fulfilled are different from those for standard calls.

Important elements of the calls:

• Maximum aid intensity: 60% (In Pilot projects the maximum amount of grant for an individual project is limited to EUR 40 million.)
• Consortium: Applications may be submitted individually or by consortium.
• Operating period (typically 3-15 years):
  o Preparatory period (financial close): within 4 years after the signature of the grant agreement
  o Implementation
  o Operation period: min. 5 years after entry into operation (for small-scale, pilot and manufacturing of electric vehicles battery cells projects min. 3 years after entry into operation)
• Project costs must relate exclusively to the following categories:
  o Construction costs
  o Site infrastructure costs
  o Development costs
  o Intangible assets

Activities that can be funded

I. Large-scale, medium-scale and small-scale projects:

• Supporting innovation in low-carbon technologies and processes;
• Helping to stimulate the construction and operation of projects that aim at the environmentally safe capture and geological storage of CO2;
• Helping to stimulate the construction and operation of innovative renewable energy and energy storage technologies;
• Hydrogen applications in industry and hydrogen production projects with a demonstrated sufficient degree of innovation;
• In the maritime and aviation transport sectors breakthrough innovative technologies (eg. energy efficiency, sustainable alternative fuels, electrification and zero-emission propulsion technologies).

II. Clean-tech manufacturing projects:

• Construction and operation of manufacturing facilities to produce specific components, where activities should demonstrate innovation in the products and/or production processes:
  o renewable energy installations, including their connection to the electricity/heat grid;
  o electrolysers and fuel cells;
  o energy storage solutions;
  o heat pumps.

III. Pilot projects:

• Construction and operation of pilot projects that focus on validating, testing and optimising highly innovative, disruptive or breakthrough technologies in deep decarbonisation needed for achieving the climate neutrality goal.
• Regarding pilot projects, a higher degree of innovation is expected than in the other topics.

IV. Manufacturing of electric vehicles battery cells projects:

• Manufacturing of cells that can be used in electric vehicle batteries, that comply with the definition provided in the EU Battery Regulation (2023/1542). Optionally, the project may also include:
  o Additional production of upstream components;
  o Battery or battery material recycling.

Which projects are worth applying for?

The purpose of the Innovation Fund is to support projects that:

• result in the avoidance of significant amounts of greenhouse gas emissions;
• enhance Europe’s innovation and industrial capacity;
• present highly innovative or disruptive solutions;
• contribute to the use of clean technologies in the European manufacturing industry;
• facilitate the expansion of Europe’s battery manufacturing capacity to meet the growing demand for electric vehicles;
• have high market and growth potential.

When and what must be submitted?

The submission deadline is the 24th of April 2025. The submitted application will be evaluated along the following criteria:

• Degree of innovation
• GHG emission avoidance potential
• Project maturity 
• Replicability 
• Cost efficiency
• Manufacturing carbon footprint reduction (only in case of Manufacturing of electric vehicles battery cells projects)
• Security of supply and countering dependency (only in case of Manufacturing of electric vehicles battery cells projects)

Entities considering an innovative sustainability project that may fall within the scope of the call should consider the possibility of applying, for which Deloitte experts are at your disposal.

For further information about the call, please feel free to contact our experts!