The European Commission has announced significant updates to the Innovation Fund in 2024, continuing its focus on accelerating the deployment of low-carbon technologies across Europe. This year, two primary funding mechanisms have been launched: the Innovation Fund 2024 Call and the Innovation Fund 2024 Auction.
This funding could be primarily of interest to the pulp and paper industries and larger companies with larger investment plans for the coming years.
The Innovation Fund 2024 is a continuation of previous calls but with updated priorities and a streamlined application process. The total budget for 2024 is €2.4 billion, dedicated to projects with a high potential to reduce greenhouse gas emissions in key sectors such as cleantech manufacturing, energy storage, and decarbonization of energy-intensive industries. The call covers five main areas:
- General decarbonization (small-scale projects): Projects that innovate in low-carbon technologies, environmentally safe carbon capture and utilization, as well as renewable energy and storage technologies. Project budgets range from €2.5 million to €20 million.
- General decarbonization (medium-scale projects): Focus on similar technologies, but with project budgets ranging from €20 million to €100 million.
- General decarbonization (large-scale projects): Projects with a budget over €100 million targeting large-scale reductions in carbon emissions.
- Cleantech manufacturing: Supports innovative projects in the manufacturing of components for hydrogen production and energy storage.
- Pilots: Aimed at highly innovative, disruptive, or breakthrough technologies required for deep decarbonization.
Applications for this call are open until 9 April 2025, providing companies and organizations with time to submit their proposals.
The Innovation Fund 2024 Auction represents a competitive financing mechanism, crucial for scaling up clean technologies, particularly in the hydrogen sector. This auction, launched with a total budget of €1.2 billion, is part of the European Commission’s broader efforts to support the EU Hydrogen Bank. The auction will fund renewable hydrogen production, specifically hydrogen from non-biological sources (RFNBO). This funding will be awarded through competitive bidding based on price, aiming to encourage cost-efficient, large-scale production of renewable hydrogen.
The deadline for bids is 20 February 2025.
To guide applicants through the process, the European Commission is hosting online information days:
- 17-18 December 2024 for the IF24 Call
- 10 December 2024 for the IF24 Auction
