EU invests 1 billion euros to support development of breakthrough energy technologies

According to a recent report on the European Commission website, the European Commission's "Innovation Fund" began soliciting proposals for the first time today. It will invest 1 billion euros to fund breakthrough technologies in renewable energy, energy-intensive industries, energy storage, and carbon capture, use and storage, and promote local "green recovery" by creating jobs, paving the way for Europe to achieve climate neutrality by 2050, and strengthening Europe's leading position in technology globally.

The "Innovation Fund" is an investment program for low-carbon and renewable demonstration projects initiated by the European Commission. It is one of the world's largest innovative low-carbon technology funding programs. Its funds are partly derived from the auction of emission quotas in the EU's "Emissions Trading System". It aims to provide appropriate financial support to companies and public institutions so that they can better invest in the next generation of low-carbon technologies and provide EU companies with a first-mover advantage.

The European Commission said the call for proposals will provide 1 billion euros in funding for large-scale clean technology projects to help them overcome the risks associated with commercialization and large-scale demonstration and help new technologies reach market.

Frans Timmermans, Executive Vice President of the Innovation Fund, said: "This call for proposals comes at the right time. The EU will invest €1 billion to finance promising projects with market demand in energy-intensive industries such as steel, cement and chemicals, such as clean hydrogen or other low-carbon solutions. We will also support related innovative technologies in energy storage, grid solutions and carbon capture and storage. These large-scale investments will help restart the EU economy and achieve a 'green recovery' so that we can achieve climate neutrality by 2050."

The call for projects is open to all EU member states, Iceland and Norway, and the funds can be used in conjunction with other public funding programs (such as state aid or other EU funding programs). The Innovation Fund will evaluate the projects' potential to reduce greenhouse gas emissions, their innovation potential, their financial and technological maturity, and their potential for scale-up and cost-effectiveness. The application deadline is October 29, 2020.

During the period 2020-2030, in addition to the unused balance of the "NER 300" project, the predecessor of the "Innovation Fund", the "Innovation Fund" will also allocate approximately 10 billion euros from the auction proceeds of emission quotas in the EU "Emissions Trading System".