The EU has taken a significant step towards a greener future by selecting 85 innovative net-zero projects to receive a total of €4.8 billion (~$5.2 billion) in grants from the Innovation Fund.
This substantial investment aims to accelerate the development and deployment of cutting-edge clean technologies across Europe.
The selected projects span a wide range of sectors, including energy-intensive industries, renewable energy, energy storage, industrial carbon management, net-zero mobility, and buildings. They are strategically located in 18 European countries, demonstrating the continent-wide commitment to sustainable development.
These projects are expected to reduce greenhouse gas emissions by approximately 476 million metric tons of CO2 equivalent over their first ten years of operation. This will contribute significantly to the EU’s decarbonization objectives and strengthen Europe’s position as a global leader in clean technology.
One of the key objectives of the Innovation Fund is to support industrial innovation in line with the Net-Zero Industry Act (NZIA).
The selected projects will focus on developing and operating manufacturing plants for essential components in renewable energy systems, such as wind turbines, solar panels, and heat pumps. Additionally, they will invest in technologies like electrolyzers, fuel cells, energy storage, and batteries.
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The Innovation Fund also prioritizes projects that can help energy-intensive industries reduce their carbon footprint. This includes initiatives related to renewable energy integration, heat and energy storage, recycling, and electrification.
Another area of focus is industrial carbon management. The selected projects will capture and store carbon dioxide, contributing to the EU’s target of storing at least 50 million tonnes of CO2 per year from hard-to-abate sources.
Among these is the Danube Removals project in Hungary, which marks the first onshore CO2 storage initiative supported by the fund within the EU. It represents Hungary’s inaugural commercial-scale carbon capture and storage (CCS) project, which aims to capture biogenic CO2 emitted during the fermentation process at a local biorefinery.
Another is the StarFish project in Norway, which stands out with its innovative floating injection and storage technology. And as the fund is seeking to address the geographical imbalance in access to CO2 storage across Europe, it has also selected new projects in the Mediterranean region.
In Italy, two funded capture projects are expected to support the development of the Ravenna CCS project by providing a steady supply of CO2. Spain, too, has made significant strides with its first commercial-scale CO2 storage project, TarraCO2. Despite possessing vast geological storage potential, Spain had previously lagged behind in CCS development.
Furthermore, the Innovation Fund is supporting the development of renewable hydrogen. The projects will produce renewable fuel of non-biological origin (RFNBO), which can be used in various industrial and transport applications.
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In response to the new funding opportunity, Codie Rossi, Policy Manage Europe, Carbon Capture Program at Clean Air Task Force (CATF), said: “The Innovation Fund’s support for CO₂ storage projects beyond the North Sea will greatly aid in decarbonising European industry, helping to address the geographical imbalance in access to storage. The selection of a Spanish project is particularly important, given the country’s large cement and lime industries, for which we urgently need CO₂ storage solutions.”
In the mobility sector, the selected projects will help reduce emissions, particularly in maritime and road transport. This includes building and retrofitting vessels for RFNBO fuels and electricity use, as well as developing sustainable transport fuels.
The successful projects were evaluated by independent experts based on their potential to reduce greenhouse gas emissions, degree of innovation, operational and financial maturity, replicability, and cost efficiency.
The European Commission will launch the next call for proposals under the Innovation Fund in early December 2024, inviting innovative projects to contribute to Europe’s green transition.
