Commission attaches more than €1 billion to innovative EU climate transition projects
Today, the Commission signed grant agreements for €1.1 billion with seven large-scale projects through THE EU Innovation Fund financed from THE EU Emissions Trading Scheme (ETS) revenue. The aim of the projects is to reduce emissions by more than 76 Mt CO in the first ten years of operation.2 equivalent. In these seven projects, innovative low-carbon technologies are used at industrial scale, covering key sectors such as hydrogen, steel, chemicals, cement, solar energy, biofuels and carbon capture and storage.
President-in-Office of the Council on European Green Rate Frans Timmermans:
With the Innovation Fund, the European Commission gives €1.1 billion to enable innovative and forward-looking companies developing advanced technologies to be able to direct climate change in their respective areas. It is a smart contribution to decarbonisation and resilience of our economy and it strengthens the global leadership of our industry in clean technologies, creates local employment and helps to implement the Green Reform.
Director of the European Environment, Infrastructure and Environment Executive Agency (CINEA) Dirks Becker:
CINEA with pride signs the first large-scale projects within the innovation fund. With these projects we prove that the transition to clean energy is already happening, but a significant reduction in greenhouse gas emissions gives economic opportunities to our project promoters. These projects are very innovative in their sectors and a path must be shown so that others can follow.
Projects at short
“Kairos @C”. The project “kairos @C” in Antwerp Port (Belgium) aims at creating the first and largest cross-border carbon capture and storage value chain CO.2 for reception, liquefaction, transportation and permanent disposal. “Kairos @C” will allow for the introduction of a number of innovative technologies that have a potential to eliminate 14 Mt CO IN the first ten years of activity.2 equivalent emission in the atmosphere.
“BECCS at Stockholm”. This project operates in Stockholm (Sweden) and aims at establishing a full-scale bioenergy capture and storage (BECCS) facility in the existing heat and power biomass plant in Stockholm. Combining CO2 recovery with heat recovery, the project will prevent 7,83 Mt CO IN the first ten years of operation2 equivalent emissions. This is more than all greenhouse gas emissions from public sector electricity and heat production in Sweden in 2018.
“Hybrit Demonstration”. In Uselessa and Jellivaria (Sweden), a project is running Hydrogen Breakthrough Ironmaking Technology Demonstration (“Hybrit Demonstration”), which aims to radically transform the European iron and steel industry. This will replace fossil fuels with climate-neutral alternatives such as the production and use of green hydrogen. The project has a potential to eliminate 14,3 Mt CO IN the first ten years of operation2 equivalent emissions. In addition, it will use technology related to significant climate benefits in the steel industry.
“Ecoplanet”. This project, which operates in Moreel (Spain), will provide the first commercial equipment for the European market through waste that would otherwise be landed. The plant will produce 237 kt methanol annually and thus recover 70 % of carbon in non-working materials. The project will eliminate 3.4 Mt CO IN the first ten years of operation2 equivalent emissions.
“K6 Program”. Project “K6 Program” operates in Lembre (France) with the aim of producing the first carbon neutral cement in Europe, becoming a representative project for cement industry worldwide and supporting the transition to clean energy in the sector, which is difficult to give up. The project will introduce a first-time industrial-scale combination which includes a hermetic furnace and cryogenic carbon capture technology with CO2 disposal in the North Sea area which would otherwise be discarded into the atmosphere. As a result, the project will eliminate 8.1 Mt CO IN the first ten years of operation.2 equivalent emissions.
TANGO. The TANGO project takes place in Catania (Italy) and constitutes an industrial scale pilot line for the production of innovative high-performance photovoltaic (PV) modules. It will increase production capacity fifteen times, from 200 MW to 3 GW per year. The generated modules will be able to eliminate 25 Mt CO in the first ten years of operation.2 equivalent emissions. In addition, TANGO will strengthen the value chain in the European upstream PV sector.
“SHARC”. The “SHARC” project (“sustainable hydrogen and carbon recovery”) in the Porvo refinery (Finland) will reduce greenhouse gas emissions by switching from fuel production to renewable hydrogen production (electrolysis) and hydrogen production through carbon capture technology. The “SHARC” project will eliminate more than 4 Mt CO in the first ten years of operation2 equivalent emissions.
Context
The Innovation Fund is funded by the EU ETS auctioning revenues and aims to provide the right financial incentives for businesses and public authorities to invest in future-generation low-carbon technologies and thus provide EU companies with pre-existing benefits as world leaders in the field of technology.
The Innovation Fund is implemented European Executive Agency for Climate, Infrastructure and Environment (CINEA), but European Investment Bank provides assistance to project development for promising projects which are not yet ready for full application. The Fund also provides small grants. Yesterday, March 31, was announced second call submit proposals.
The Innovation Fund is currently composed of 450 million allowances from the 2021-2030 ETS. According to the European Commission's proposals “ready to target 55 %”, it will be complemented by 50 million allowances from the revised ETS and 150 million allowances from the new system covering emissions from road and buildings. In addition, quotas which would otherwise be allocated free of charge to the industrial sectors covered by carbon Import Mechanismare now auctioned and credited to the innovation fund.