innovation fund info day in estonia · technologies qualify to innovation fund (if)? kas ja...
TRANSCRIPT
Innovation Fund Info Day in Estonia
16.07.2020
Ms Maria Velkova
Production and use of
Renewable energyincluding manufacturing plants for
components
Carbon Capture Use and Storage
Energy-intensive industries
including substitute products
Energy storageincluding manufacturing plants
for components
Driving low-carbon technologies to the market
What and who?
Annex C, Methodology for calculation of GHG emission avoidance, Appendix C1 Classification of projects into sectors
Category Sector Product
Energy storage, incl. manufacturing plants for components
Intra-day electricity storage electricity
Other energy storage electricity, heating/cooling, e-fuels, hydrogen
Renewable energy, incl. manufacturing plants for components
Wind energy electricitySolar energy electricityHydro/Ocean energy electricityGeothermal energy electricity, CHP
Bio-electricity electricity, CHP
Renewable Heating/Cooling heating/cooling
Energy Intensive Industries,incl. CCU,incl. substitute products,incl. CCS (CO2 capture and full scale)
Refineries fuels (incl. e-fuels)Biofuels and bio-refineries biofuel, bio-based productsIron & steel coke, iron ore, iron, steel, cast ferrous metals products, other
Non-ferrous metals aluminium, precious metals, copper, cast non-ferrous metal products, other
Cement & lime cement, lime, dolime, sintered dolime, other
Glass, ceramics & construction material
flat & container glass, glass fibres, tiles, plates, refractory products, bricks, houseware, sanitary ware, mineral wool, gypsum, other
Pulp & paperchemical pulp, mechanical pulp, paper and paperboard, sanitary and tissue paper, other
Chemicalsorganic basic chemicals, inorganic basic chemicals, nitrogen compounds, plastics in primary forms, synthetic rubber, other
Hydrogen hydrogenOther electricity, heat, other
CCS (CO2 transport and/or storage) CO2 transport and/or storage CO2 transport and/or storage
1. Do those energy intensive industry projects fit in Innovation Fund that are not listed in EC tables (refineries, iron&steel, pulp&paper; wind energy, intra-day electricity storage jne) and products underthose sectors?
Kui on energiaintensiivne projekt, kuid mille sektorit pole nimetatud tabelis, kas siis sellised taotlused on ikkaoodatud?
There is category ‘other’ which may cover EU ETS installations which don’t fall in the listed sectors but have more than 20 MW thermal fossil fuel input.
2. Or if a sector is listed but not a product (e.g. not a chemical pulp but another type or not a cement product but another type of lime product)? Can the products not listed apply for funding?
Või kui sektor on nimetatud, kuid pole nimetatud toodet(nt mitte chemical pulp, vaid muud tüüpi pulp või nt mittecement, vaid teist tüüpi lime toode), siis kas need projektid on oodatud innovatsioonifondi?
The list of sectors is exclusive but not the list of products. So, there can be other products than those listed.
3. Do solutions for Information and Communication technologies qualify to Innovation Fund (IF)?
Kas ja millised IKT lahendused kvalifitseeruvad fondi?
Yes: the innovation may be delivered by ICT, like in smart grid projects.
4. Are costs for prototyping and prototype testing eligible?
Prototüübi valmistamise ja katsetamise kulude katmisevõimalused?
The relevant (eligible) costs are the additional costs borne by the applicant as a result of the application of the innovative technology related to the reduction or avoidance of the GHG emissions. See also
6. Which Research and Development actions and infrastructures can be financed from IF?
Milliseid TA tegevusi ja taristuid saab täpsemalt finantseerida?
So long as the biodegrdabale polyester fibers would be substituting chemicals that are currently produced in installations covered by the EU ETS they will be eligible.
5. Are the technologies to produce biodegradable polyester fibers eligible? Or does IF fund target mostly energy sector?
7. Can producers' association submit a proposal?Kas taotlusi võivad esitada ka tootjate ühistud?
Eligible applicants: legal persons, that are private entities, public entities, or international organisations and are directly responsible for the implementation and management of the project where relevant jointly with other applicants, i.e. not acting as an intermediary.
8. Do you see spin-off companies to apply for funding?Millised on teadusmahukate spin-offide võimalused Innovatstioonifondis?
Very much so, possibly the small-scale call will be more appropriate.
Selection process
(a) GHG emissions avoidance
(b) Degree of innovation
(c) Project maturity
Award of Project
Development Assistance
(PDA)
Award of project grants
(a) GHG emissions avoidance
(b) Degree of innovation
(c) Project maturity
(d) Scalability(e) Cost efficiency
Expression of interest
Full application
List of pre-
selected projects
to be consulted with MS
Criteria (a), (b), (c) are met
Criteria (a) and (b) are met
9. What is the award criteria?
Mis on toetuste kriteeriumid?
Award criteria
• Quantitative indicators for absolute and relative avoidance
GHG emission avoidance
• Beyond incremental innovation and impact on EU policy objectives
Degree of innovation
• Ready to reach financial close within 4 years?
Project maturity
• Market potential for widespread application
Scalability
• Requested support per ton of CO2
Cost efficiency
GHG emission
avoidancecalculations
Reference scenario GHG emissionavoidance in
projectscenario
calculatedbased on
GHG emissionsin reference
scenario basedon
Expectedquantity during10 years after
entry in operation
ETS benchmark(s)
Quantity ofproduct Changes in
❖ inputs
❖ processes
❖ outputs (e.g. waste)
compared toreferencescenario
Expected 2030 electricity mix
Quantity ofelectricityproduced
Natural gas (NG)
boiler
Quantity ofheat produced
Fossil fuel comparators from RED2
Quantity of fuel produced
Single-cycle NG turbine
peaking power
Quantity of energy stored
Emission factors for grid electricity
Project and reference scenarios
Grid Electricity substituted by export
from the project
Discharging for energy storage
Grid Electricity Consumed
Charging for energy storage
Energy intensive industry
CCS
Fully decarbonised electricity mix
Fully decarbonisedelectricity mix
Renewable electricity and heat
Expected 2030 electricity mix for net
export
Fully decarbonised electricity mix for net
import
Energy storageSingle-cycle NG turbine
peaking powerFully decarbonised
electricity mix
Assessment criteriaMandatory documents
Technical maturity
Technical feasibility, including project design and technical risks
Feasibility study
Financial maturity
Financial viability, including profitability and financing
structureBusiness plan
Operational maturity
Progress in planning and implementation, including
permitting procedures, contracts with customers and suppliers
Project implementation plan
Project maturity – ready to reach financial close within 4 years?
Degree of innovation
• (First-of-a-kind) commercialisation at large-scale
• Proposed technology or productgoes beyond minor changes
Project goes beyond
incremental innovation
• Energy efficiency and circularity
• Use of electricity from renewableorigin
• Net carbon removals
… considering additional criteria
(second stage)
10. What is the requirement for TRL (technical readiness level)?
See Annex D: Technologies that are not yet commercially available but represent breakthrough solutions or are sufficiently mature to be ready for demonstration at pre-commercial scale.
- a first-of-a-kind commercialisation or large-scale commercial size demonstration;
- second or more of a kind commercialisation if relevant costs remain a significant share of total costs;
- Smaller demonstrations or pilot plants are also eligible for support so long as this is the appropriate scale
Application Form B: Project maturity
Scalability – market potential for widespread application
• Further expansion at project site, including sector coupling
• Cooperation with regional economy
• Strategy on knowledge sharing
Project and regional level
• Potential GHG emission avoidance for sector, # installations
• Taking account of supply and demand conditions, such as expected cost reductions and resource constraints
Sector
• Potential GHG emission avoidance across economy, taking into account size of the sector and potential of GHG emission avoidance in other sectors
• Impact on competitiveness and supply chains within EU
Economy-wide
Cost efficiency =
Relevant costs less contributionby project applicant
Max 60% of relevant costs
Absolute GHG emission avoidance
during 10 years after entry intooperation (first criterion)
=
Contributions from private resources or public support
Calculating relevant costs
• Comparison of levelised project costs to the market price
• Also for substitute products
• Default methodology
Levelisedcosts
• Comparison of project costs to costs of reference plant
• Fall-back option
Reference plant
• In case no comparable product or conventional technology exists
No-reference plant
11. The payments are granted at the staged of "financial close", "entry intro operation" etc. How is it in case of project where "financial close" is reached in 1-2 years after the submission of proposal but "construction" and "entry into operation" takes 7-10 years? Do those projects fit to IF? Especially considering that final reporting is expected within 10 years.
Toetuse välja maksmisel jälgitakse etappe „financial close“, „entry intro operation“ jne. Kui on projekt, kus„finanical close“ saavutatakse 1-2 aastaga peale taotluseesitamist, kuid „construction“ ja „entry into operation“ võtab 7-10 aastat, siis kas sellise kestusega projektidüldse saavad IF-st toetust?
Entry into Operation
Financial Close
Up to 40%
independent of achieved emissions
avoidance
depending on achieved emissions avoidance
(min 75% for full grant)
Possible to agree payments at add’lmilestones during
construction phase
(subject to recovery in case that emission avoidance will not be
achieved)
Annual payments for achieved GHG emissions avoidance after
entry in operation
At least 60%
Possible to agree payments at additional milestones
(e.g. drilling with geothermal project)
Payments upon milestones
Max 4 years 3 to 10 years
End of project for IF
12. What is the limit period for non profit making?
Kui pikalt kasumi teenimise piirang kehtib?
Relevant cost are checked at second stage application and at entry into operation.Monitoring period for the programme is 3 to 10 years after entry into operation.
13. Has Breakthrough Energy Ventures (BEV-E) launched in 1Q 2020 as was on December 2019 slides?
Yes, in February 2020
Some specific questions more
All call documents available on the Funding and Tenders Portal
Further guidance:✓Frequently asked questions
Still to be published:
✓Guidance for evaluators
Further questions:Applicants are kindly invited to submit further questions via
the Funding and Tenders Portal
Good luck!