The LIFE Programme is the EU’s funding instrument for the environment and climate action. The general objective of LIFE is to contribute to the implementation, updating and development of EU environmental and climate policy and legislation by co-financing projects with European added value. After 22 years, €3.4 billion and 4.170 projects, the LIFE Programme continues to finance actions for the environment and climate action.
The overall objective of this topic is to support the competitiveness, clean energy transition and decarbonisation of industry by bridging the gap between the demand and supply side of net-zero energy technologies as well as by fostering collaborative approaches among companies operating in physical proximity.
In 2023, the industry sector made up 25% of the total EU-27 final energy consumption, out of which energy-intensive companies account for almost 40%. Exposure to energy prices, increased global competition as well as potential transition risks linked to changing regulation, market demand and buyers/suppliers procurement criteria are increasing pressure on EU companies.
For this reason, modernising and decarbonising the industry sector while enhancing competitiveness remains a top priority to succeed in the clean energy transition, as highlighted in the Future of European Competitiveness report. New business models and financial schemes are needed to boost the decision to invest in energy efficiency and renewable energy.
Proposals should address only one of the two scopes below. The scope addressed should be clearly specified in the introduction of the proposal.
For both scopes, proposals are encouraged to connect with financial players and investors for the validation of the proposed approach, as well as to create synergies with the national hubs of the European Energy Efficiency Financing Coalition.
Scope A: Collaboration between industrial sectors and technology providers for clean energy technology optimisation and deployment
This scope aims to establish new collaborations between one or a few industrial sectors/sub-sectors sharing similar processes and energy related needs with sustainable energy technology manufacturers and providers. Applicants shall focus on a clearly identified clean energy technology or a coherent set of technologies contributing to a higher energy performance for the targeted industrial sector(s)/process(es).
Relevant technologies could include for example: local renewable energy integration, waste heat recovery, heat electrification solutions, including through the use of heat pumps, as well as energy efficiency and storage solutions, energy-efficient electric motor systems and more generally the renewable energy and energy efficiency related technologies covered by the Net-Zero Industry Act. Commercially available technologies and recent innovations ready for market deployment (Technology Readiness Level 8-9) are eligible for this scope.
Proposals addressing sectors already covered by ongoing similar initiatives should clarify the added value and/or complementarity of their proposed activities; there are ongoing collaborations[6] between industrial heat pump manufacturers and the pulp and paper, food and drink sectors, and several chemical sub-sectors.
On the user side, the specific industrial sector(s) should survey and synthesise the technological and energy needs of the industrial plants/sites concerned across the participating countries in the LIFE Programme, and review them through a closer exchange with technology suppliers and manufacturers, to co-design and optimise a more standardised and streamlined technological solution, as well as develop technical-economic guidelines and design tools to support the tailoring of concept solutions to the specific needs of the industrial plants in Europe.
On the supply side, Europe-based manufacturers and technology providers, together with other relevant stakeholders along the value chain, should optimise and standardise their existing technological offers, products and solutions to meet the needs of the industrial sector.
The goal is to move from a custom-built, project by project approach for each specific industrial plant and process, to more streamlined, standardised solutions and design tools for industrial clients operating the same processes. This cooperation should go beyond a simple business-to-customer approach and support business-to-business-to-customer collaboration models.
Proposals are expected to support the establishment of concrete collaboration initiatives, including the governance structure, and their initial operation. Activities should address the development and validation of business models for the deployment of the specific solutions explored in the sector(s) addressed, dissemination via multiple channels and capacity building activities for the deployment and installation of the solutions, including with multipliers, such as national energy agencies and energy auditors.
Proposals should present a clear strategy to roll out the technical solutions on the targeted industrial sector/processes, including access to public and private finance.
The involvement of the relevant representative organisations at European level both for the end user industrial sector(s) and for technology providers should be ensured through direct participation in the consortium to enable a European wide consultation of the needs of the user sector(s), a faster market acceptance and uptake of the co-designed solution along with the proposed benchmarks and standards. In addition to European representative organisations, proposals may also involve national and regional players representing the targeted end-users if deemed necessary for the action.
Proposals should focus on technologies ready to market or that have been successfully implemented under real operating conditions and should justify the choice of the targeted sector(s)/processes based on a clear quantification of the market’s needs and a detailed analysis of the barriers and proposed solutions. The demonstration of the proposed solutions is not in the scope of this topic, and potential costs for equipment will be eligible only to a very small extent, if justified.
Scope B: Energy cooperation among industries in geographical proximity, including ports, to foster clean, affordable and sustainable energy use
Proposals under this scope should support the cost-effective and energy-efficient transition of industrial processes to renewable and low-carbon energy sources, including process electrification and waste heat recovery, through energy cooperation approaches among companies, particularly energy-intensive industries, that are in geographical proximity (local/regional industrial clusters, industrial park/sites, maritime and inland ports).
Energy cooperation can refer to the process of sharing energy-related assets (e.g. renewable and low-carbon energy generation, energy storage), sharing energy services, implementing energy exchanges (e.g. recovery and use of waste heat from industrial and manufacturing processes, or flexible electricity demand and complementarity between the demand profiles of industrial prosumers) as well as the voluntary interfacing of industrial energy prosumers with system operators (e.g. electricity, heat, hydrogen, CO₂) for infrastructure planning. Energy cooperation can take place within the same industrial cluster, park/area or among them (e.g. at regional level among different industrial clusters/areas) as well as in industrial port areas. The development of green regional/local industrial areas/clusters can also facilitate better access to finance, energy services via ESCO contracts and power purchase agreements.
Proposals should facilitate the establishment of energy cooperation mechanisms within the timeframe of the project, including but not limited to identifying, investigating and validating economically viable business models (based on concrete interaction with participating companies), ensuring added value for each involved actor (e.g. buyers/suppliers/final users). Proposals should also work on removing barriers that hinder energy cooperation, e.g. organisational (coordination, trust, responsibilities, data management, risk sharing), legal (identification of update needs or regulatory sandboxes where relevant) or social.
Proposals should deliver investment plans including a pipeline of feasible projects aiming, among others, to accelerate the electrification of the energy demand and energy efficiency improvements in the targeted industrial areas/clusters. The proposed investment plans should be endorsed by key relevant stakeholders (businesses, public authorities, including port authorities where applicable, industry park managers, investors, TSOs, DSOs, ESCOs etc.).
Proposals may explore the use of voluntary national or regional agreements to mobilise private and public resources instrumental for the implementation of the investment plans. The envisaged plans are expected to complement and feed into the preparation of local, regional and national strategies to climate neutrality and energy efficiency (e.g. Sustainable Energy and Climate Action Plans (SECAPS) or similar).
Proposals should clearly explain their approach to engage with companies and how it is adapted to the specific needs of the targeted areas/clusters. The proposals should demonstrate a high degree of replicability, present and commit to implement a clear strategy to disseminate the results to other industrial and port areas along with a clear action plan to communicate experiences, critical success factors and results towards relevant energy cooperation actors and stakeholders across the EU.
For both scopes A and B
Proposals must be submitted by at least 3 applicants (beneficiaries; not affiliated entities) from 3 different eligible countries.
95%
In order to be eligible, the applicants (beneficiaries and affiliated entities) must:
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). For the validation, they will be requested to upload documents showing legal status and origin.
Other entities may participate in other consortium roles, such as associated partners, subcontractors, third parties giving in-kind contributions, etc.
Consortium composition – Proposals must be submitted by at least 3 applicants (beneficiaries; not affiliated entities) from 3 different eligible countries.
Department of Environment
Ministry of Agriculture, Rural Development and Environment
www.lifecyclamen.com.cy
Persons to Contact
Marilena Papastavrou
Environment Officer, National Contact Point for Environment
Telephone: +357 22 408 926
Email: mpapastavrou@environment.moa.gov.cy
Chrystalla Papastavrou
Environment Officer, National Contact Point for Climate
Telephone: +357 22 408 962
Email: cpapastavrou@environment.moa.gov.cy