Programme Category
Programme Name
Programme Description
The Innovation Fund program that helps reduce greenhouse gas (GHG) emissions.
“Large-scale” projects are projects with a capital expenditure of over € 7.5 million.
“Small scale” projects are projects with a total capital cost of less than € 7.5 million.
Identifier Code
Call
Summary
The objective of this topic is to cost-efficiently support the new production of renewable fuel of non-biological origin (RFNBO) hydrogen, on the territory of EU/EEA, as defined in the Renewable Energy Directive 2018/2021 and its Delegated Acts, in support of the 2030 targets for renewable hydrogen established in this Directive and supported by the REPowerEU Plan, the Green Deal Industrial Plan and the European Hydrogen Bank Communication.
Detailed Call Description
This call is an auction call, i.e. a call that is awarded based on a competitive bidding procedure on price and therefore subject to specific conditions (e.g. auction terms and conditions, fair bid conditions, completion guarantee, etc).
The call supports the RFNBO industry and mobility targets established in the Renewable Energy Directive 2018/2021 and is aligned with its Delegated Regulations on methodology for RFNBOs. As announced in the European Hydrogen Bank Communication, the topic will further contribute to:
- Connecting EU domestic RFNBO hydrogen supply and demand.
- Bridging the cost-gap in the EU between RFNBO and fossil hydrogen as effectively as possible.
- Allowing for RFNBO hydrogen price discovery and market formation in the EU.
- De-risking European RFNBO hydrogen projects, bringing capital costs down and leveraging private capital.
- Contributing to faster deployment and simpler implementation of projects, while reducing administrative burden and costs.
The following activities can be funded: installation of new RFNBO hydrogen capacity (i.e. hydrogen production capacity for which at the time of the grant application the start of works did not yet take place) as well as the verified and certified production of RFNBO hydrogen from those installations (in kg of produced volume) for a period of up to 10 years.
For avoidance of doubt:
- the bid price per unit is expected to cover the premium required by the producer, i.e. the difference between the expected revenues from the sale of one unit and the unit’s levelized cost. Cost elements like production, sale, transport, and storage can be priced into the bid.
- the produced RFNBO hydrogen can be sold to any off-taker or self-consumed or stored. The RFNBO definition applies to hydrogen purchased by any off taker (not only in transport).
Only projects with a minimum installed capacity of the electrolyser of at least 5 MWe will be eligible. Projects with a lower capacity will be rejected. The electrolyser capacity must be in a single location. Virtual pooling of capacity is not permitted.
Call Total Budget
Financing percentage by EU or other bodies / Level of Subsidy or Loan
Project budgets (maximum grant amount) must be calculated using the calculator provided in the ‘financial information file’ and respect the following conditions:
- applicant bid price (fixed premium in EUR per kg) multiplied by the expected average yearly volume of production (kg per year) multiplied by 10 years (‘pay as bid’)
- not exceed 1/3 of the topic budget.
Only bids that do not exceed € 4,50/kg of RFNBO hydrogen produced will be eligible (‘ceiling price’). Proposals with bid prices above the ceiling price will be rejected. The grant awarded may be lower than the amount requested.
The grant will be a unit grant. This means that it will reimburse a fixed amount per unit, based on unit contributions, corresponding to the fixed premium per unit of production of the final product as stated in the bid.
The project must:
- enter into operation within five years after grant signature (maximum time to entry into operation)
- operate for normally 10 years
Project duration normally ranges between 10 and 15 years, from grant signature to the final payment.
Thematic Categories
- Energy
- Environment and Climate Change
- Industry
- Research, Technological Development and Innovation
- Trade and Commerce
Eligibility for Participation
- Central Government
- International Organisations
- Large Enterprises
- Legal Entities
- Other Beneficiaries
- Private Bodies
- State-owned Enterprises
Eligibility For Participation Notes
In order to be eligible, the applicants (beneficiaries and affiliated entities) must:
- be legal entities (public or private bodies)
- be established in one of the eligible countries: any country in the world.
Beneficiaries and affiliated entities must register in the Participant Register — before submitting the proposal — and will have to be validated by the Central Validation Service (REA Validation).
Eligible activities are the ones set out in section 2 above.
Projects must comply with EU policy interests and priorities (such as environment, social, security, industrial and trade policy, etc).
Financial support to third parties is not allowed.
Geographic location (target countries): Projects must be located in EU Member States or EEA countries (i.e. Norway, Iceland or Liechtenstein).
Call Opening Date
Call Closing Date
National Contact Point(s)
Ministry of Agriculture, Rural Development and Environment
Mrs. Maria Loizou
28th of October Avenue 20-22
2414 Engomi, Nicosia
Telephone: +357 22408955
Email: mloizou@environment.moa.gov.cy
Website: www.moa.gov.cy
Ministry of Research, Innovation and Digital Policy
Ms. Elena Poulli
29 Vyronos Avenue
1096 Nicosia
Telephone: +357 22691921
Email: epoulli@research.org.cy, epoulli@dmrid.gov.cy
Website: www.dmrid.gov.cy
EU Contact Point
European Executive Agency for Climate, Infrastructure and the Environment
https://cinea.ec.europa.eu/contact-0_en
For questions send to: Innovation Fund Helpdesk.