EU Awards $4 Billion To Clean Tech Projects

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union (EU) has awarded more than 3.6 billion euro (US$4 billion) in funding to 41 large-scale clean tech projects.

Financed through the EU Innovation Fund, the projects span a wide range of industries, such as cement, steel, advanced biofuels, sustainable aviation fuels, wind and solar energy, and renewable hydrogen and its derivatives. The award forms a key part of the REPowerEU Plan to boost energy security and phase out Europe's imports of Russian fossil fuels. It specifically targets sectors of the European economy that are classed as "difficult to decarbonise," like steel and cement production.

The projects are located across 15 EU Member States, will all enter into operation before 2030 and have the potential to avoid 221 million tonnes of CO2 emissions in their first 10 years of operation, according to the European Commission (EC). At the end of the year, the Commission will launch the next call for proposals for large-scale projects under the Innovation Fund, with an increased budget of 4 billion euro (US$4.5 billion).

"Today, the European Union is making an unprecedented investment of 3.6 billion euro (US$4 billion) in 41 clean tech projects across the continent," said Frans Timmermans, executive vice-president for the European Green Deal. "With investments in innovative solutions like these, we deliver on Europe's green transition goals, support our industry, and bring energy security, safety and prosperity to future generations. Because we have put a price on carbon emissions, Europe is getting the additional financial firepower that enables these transformative investments."

Industrial Info is tracking the major projects, including Sweden's H2 Green Steel which is building Europe's largest planned green steel project in Boden. Using 20-megawatt (MW) "scalum" electrolysis modules from thyssenkrupp nucera, part of Germany's Thyssenkrupp (Essen), the company aims to produce 2.5 million tons of green steel per year, with a planned ramp-up to 5 million tons by 2030. Up to 700 MW capacity of the alkaline water electrolysis (AWE) modules will be delivered. Operations are planned to start at the end of 2025, with a scheduled ramp-up in 2026.

The 41 projects were selected following the third call for large-scale projects, covering four topics: "general" decarbonisation; "industry electrification and hydrogen"; "clean tech manufacturing"; and "mid-sized pilots". Most of the funding - 1.4 billion euro (US$1.6 billion) - is going to eight general decarbonization projects (three at refineries and five at cement & lime plants). This is followed by 1.2 billion (US$1.35 billion) in the industry electrification and hydrogen section, covering six projects on renewable hydrogen production as well as seven projects on hydrogen use in different sectors: chemical industry, refineries and steel. A further 800 million euro (US$899 million) is going into 11 clean tech manufacturing projects, divided into four projects on electrolyzer manufacturing, four on batteries (including recycling) and three projects on photovoltaic panels and modules. Financed by revenues from the auctioning of allowances from the EU Emissions Trading System (EU ETS), it has already held two large-scale calls awarding 1.1 billion euro (US$1.24 billion) and 1.8 billion euro (US$2 billion) in grants to seven and 16 projects, respectively. For additional information, see April 12, 2022, article - Europe Awards $1 Billion to Seven Low-Carbon Projects.

Australia's Fortescue Future Industries (FFI) (East Perth, Australia) welcomed being among those awarded European funds for its flagship green ammonia plant, FFI Holmaneset in Norway. "The selection of our flagship green ammonia plant, 'FFI Holmaneset', is a recognition by the EU of its significance to global decarbonisation efforts. The Holmaneset project is a great opportunity for FFI, Norway and Europe for early development of a significant green energy value chain, and we commend the EU for its leadership in kickstarting a green ammonia industry."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).