EU Innovation Fund 2025–2026: Application Guide, Deadlines & Success Tips

The EU Innovation Fund is one of the world’s largest funding programmes for innovative clean technologies, aimed at bringing net-zero solutions to market at scale. Funded by revenues from the EU Emissions Trading System (ETS), it supports first-of-a-kind projects that significantly reduce greenhouse gas emissions and help Europe reach climate neutrality. This overview explains what the Innovation Fund is, who can apply, how the application process works, and provides guidance – from key 2025 and 2026 deadlines to tips for preparing a strong Innovation Fund proposal. Whether you plan to apply on your own or with an Innovation Fund consultant or proposal writer, these insights will help you navigate the process and improve your chances of Innovation Fund success.

What is the EU Innovation Fund?

The EU Innovation Fund provides major grants for deploying innovative net-zero technologies at industrial scale, funded by the EU ETS. The Innovation Fund is a climate-focused funding program established by the European Commission (DG CLIMA) to finance the demonstration and scale-up of innovative low-carbon technologies. It succeeds the earlier NER300 program and is expected to allocate around €38 billion by 2030 toward cutting-edge decarbonization projects. Unlike traditional R&D funding (e.g. Horizon Europe), the Innovation Fund is not for basic research – it targets projects at the pilot, demonstration, or first industrial deployment stage, bridging the gap to commercial viability. By covering up to 60% of relevant project costs (with grants ranging from millions to hundreds of millions of euros), it helps companies overcome high upfront costs and risks, enabling them to bring innovative climate solutions to market faster.

• Purpose: The fund’s purpose is to drive significant greenhouse gas (GHG) reductions in hard-to-abate sectors while strengthening EU industrial competitiveness. It supports projects in areas such as renewable energy, energy storage, energy-intensive industries (like steel, cement, chemicals), carbon capture, utilization and storage (CCUS), hydrogen, sustainable fuels, and other breakthrough clean technologies. By investing in these first-of-a-kind projects, the Innovation Fund aims to pave the way to a climate-neutral Europe by 2050, in line with the European Green Deal and the Net-Zero Industry Act. Successful projects are expected to deliver sizable CO₂ reduction over 10 years of operation and act as trailblazers that can be replicated across Europe.
• Scale: The Innovation Fund runs annual calls for proposals from 2020 through 2030, funded through the auctioning of EU ETS allowances. Each call makes billions of euros available. For example, the 2024/25 call (for the 2025 cycle) offers about €3.4 billion in grants – €2.4 billion for a broad Net-Zero Technologies call and €1 billion for a dedicated Battery Manufacturing call. In addition, the Fund has introduced competitive hydrogen auctions (under the European Hydrogen Bank) to support renewable hydrogen production. The scale of funding is massive: a recent 2023 call awarded €4.2 billion to 77 projects across 18 countries, with individual grants up to €262 million for flagship projects. This scale makes the Innovation Fund a highly attractive opportunity for companies with bold climate innovation projects.

Who Can Apply and What Projects Are Eligible?

• Eligible Applicants: In principle, any legal entity – private company, public body, consortium, small or large – can apply for Innovation Fund support, as long as it is registered in an eligible country. Eligible countries include all EU Member States plus countries in the European Economic Area that participate in the EU ETS (currently Norway, Iceland, and Liechtenstein). Applicants may apply individually (a single company or organization) or as a consortium of several partners. Unlike some EU programs, a consortium is not mandatory; a single company can submit a proposal on its own. However, all projects must be carried out within the eligible countries (i.e. the project’s site and impact should be in the EU/EEA).
• Eligible Projects: The Innovation Fund supports a wide range of project types, but with a common theme – innovative technologies with significant climate impact that are ready for scale-up. Key characteristics of eligible projects include:
  • Climate Impact: The project should substantially reduce GHG emissions in one of the eligible sectors. These sectors cover renewable energy (e.g. next-generation solar, wind, renewable hydrogen), energy storage, energy-intensive industries (e.g. low-carbon steel, cement, chemicals processes), carbon capture, utilization and storage, alternative fuels, net-zero mobility, and even climate-friendly building technologies. The expected CO₂ (or equivalent) emission avoidance over 10 years is a critical factor – projects must quantify how much emissions they will avoid compared to conventional technology.
  • Innovative Technology: Projects must feature a high degree of innovation. Typically, this means a first-of-a-kind or new technology at industrial scale that is not yet commercially available in the market. In terms of Technology Readiness Level (TRL), the Innovation Fund is generally looking at around TRL 8 – i.e. technology that has proven itself at pilot scale and is now at first commercial demonstration. Pure research or lab projects (TRL 6-7 or below) are not funded; instead, the project should be at the cusp of commercialization, demonstrating a breakthrough solution in a real operational environment. This focus ensures the fund backs innovative projects that will deploy new technology, rather than research projects or already fully commercial solutions.
  • Maturity and Viability: Only projects that are sufficiently mature in planning, business model, and financial structure are considered. In practice, this means by the time of application you should have a well-developed project: feasibility studies done, a business plan, engineering plans, and ideally key permits in progress. The EU expects an Innovation Fund project to be investment-ready – something you could present to investors or your company’s board for a final investment decision. Early-stage ideas without concrete implementation plans will likely be rejected. Moreover, the project must not have started implementation before application – e.g. construction should not be underway and no irrevocable contracts signed. (Preparatory steps like securing land or preliminary permits are fine.)
  • Project Size: The fund caters to both large projects and small projects, but they may be addressed via different calls or streams. Historically, “large-scale” projects were defined as those with capital expenditure above €7.5 million, and “small-scale” below €7.5 million. In recent calls, the Commission further stratified project sizes – for instance, the 2024/25 call was structured to consider large projects (CAPEX over €100m), medium projects (€20–100m), and small projects (€2.5–20m) in separate categories. Pilot projects (highly innovative but not yet proven at scale) are also given a special track. This means projects of various scales can compete – whether you’re planning a €10 million pilot plant or a €200 million commercial facility, there is a pathway to apply. Keep in mind, however, that the bigger the climate impact (and the funding ask), the stiffer the competition.

In summary, eligible projects are those that present a compelling, innovative solution to cut emissions in Europe, with a well-prepared plan and located in an eligible country. If your project meets these criteria, you can consider preparing an Innovation Fund application.

How to Apply: The Innovation Fund Application Process

• Call for Proposals: To seek funding, project promoters must apply to an open Innovation Fund call for proposals. Calls are typically announced annually (usually in the late fall or winter) on the European Commission’s website and the EU’s Funding & Tenders portal. For example, the call for the 2025 cycle opened on 3 December 2024. All application materials are submitted electronically via the EU Funding & Tenders portal – there is no paper or email submission. Prospective applicants should first create an EU Login account and register their organization in the portal (if not already done) to access the application forms.
• Single-Stage Application: Currently, the Innovation Fund uses a single-stage application process for its main calls. This means applicants must prepare a full project proposal in one go (unlike some EU programs that have a concept note first). Do not underestimate the effort – a complete Innovation Fund proposal can run 200–300 pages including technical annexes. You will need to fill out detailed application forms and upload numerous documents: a project description, business plan, financial model, implementation plan, greenhouse gas (GHG) emissions calculations, and more. The application requires rigorous analysis – for instance, you must calculate the baseline and projected emissions (using the methodologies provided by the EU), perform a cost analysis, and often conduct a Life Cycle Assessment. Preparing these materials can take several months of work by a multidisciplinary team, so it’s crucial to start early.
• Evaluation: Once the submission deadline passes, all proposals undergo a thorough eligibility check and then an evaluation by independent experts appointed by the European Commission. Each eligible proposal is scored against five key award criteria:
  1. Greenhouse Gas Emission Avoidance – How much emissions will the project avoid or reduce? (The higher and more cost-effective the savings, the better.)
  2. Degree of Innovation – How novel and groundbreaking is the technology compared to the state-of-the-art?
  3. Project Maturity – How developed is the project in terms of planning, permitting, financing, and readiness to execute?
  4. Scalability/Replicability – Can the solution be scaled up or replicated elsewhere, maximizing impact across the EU?
  5. Cost Efficiency – How cost-effective is the project, measured as the amount of funding requested per tonne of CO₂ equivalent avoided? Projects receive scores in each category. Only those that meet minimum thresholds in all criteria are considered for funding, and then the highest-scoring proposals are selected until the call’s budget is exhausted. Notably, selection is technology-neutral and geography-neutral: there are no set quotas by sector or country – a proposal’s merit is judged purely on these criteria. This makes the competition intense. (For instance, the 2023 call received 337 applications from across Europe, of which only 85 projects were pre-selected for grants.) After evaluation, typically a ranked list of winning projects is announced (usually by late in the year). Projects that were highly rated but not funded (due to budget limits) may be put on a reserve list – sometimes, if others withdraw, reserve projects get a chance, as happened in 2024. All applicants receive feedback. High-quality proposals that didn’t get funded also receive a “Seal of Excellence” (STEP) as a recognition, which can help in seeking other financing.
• Timeline from Application to Grant: The process from submission to receiving funds is lengthy. For the 2025 call, for example, the deadline was 24 April 2025 and results are expected by Q4 2025, with grant agreements signed by Q1 2026. In other words, roughly 8–10 months pass between the deadline and the grant agreement. Overall, from the time you start preparing your proposal to the time you might actually launch your funded project can be well over a year. According to the EU, evaluation results for spring submissions come in the late fall, and if selected, you’ll sign a grant agreement a few months after that. Projects then have up to four years to reach financial close and begin implementation. This means applicants should plan for a long lead time and ensure their project’s timeline can accommodate this.
• Application Tips: Be sure to carefully read the official call documentation and guidance provided on the Funding & Tenders portal. The European Commission usually provides detailed instructions, templates, and even webinars or info days for applicants (for example, an info day was held in December 2024 for the IF24 call). Make use of the Q&A if something is unclear. And importantly, submit before the deadline – the portal will close promptly at the deadline (typically 17:00 CET on the due date), and late submissions are not accepted. It’s wise to upload your files a few days early to avoid last-minute technical issues.

Working with an Innovation Fund Consultant or Writer

Preparing a winning Innovation Fund application is a complex, resource-intensive task. Many companies choose to engage an Innovation Fund consultant or proposal writer to improve their chances of success. Should you consider hiring one? Here’s how a knowledgeable consultant or grant writer can add value:

• Strategic Guidance and Feasibility Check: Experienced Innovation Fund consultants will first assess whether your project is a good fit for the fund’s objectives and criteria. They often conduct a viability check or project assessment to judge the project’s strengths and weaknesses relative to the competition. If your project concept is still too early-stage or missing key elements, a consultant can advise whether to proceed now or perhaps refine and apply in a future call (a go/no-go recommendation). This saves you from investing effort in an application that isn’t ready.
• Aligning the Project with Funding Criteria: A consultant brings expertise on the Innovation Fund’s evaluation criteria and European policy priorities. They can help scope your project to align with what evaluators expect – ensuring you highlight the aspects that score points. For example, they might assist in calculating the GHG emission avoidance using the proper methodology, or suggest ways to emphasize your project’s contribution to EU climate targets and the Green Deal. They will make sure your project narrative addresses each of the five criteria (innovation, impact, maturity, scalability, cost) in a convincing manner.
• Proposal Writing and Documentation: Crafting a clear, compelling proposal is an art. Innovation Fund writers are skilled in articulating complex technical projects in a way that is persuasive to evaluators. They can take the lead in writing the application documents or provide substantial editing and feedback to polish your drafts. They ensure the language is clear, the objectives and impacts are well explained, and that every required detail or annex is provided. A good grant writer will also help avoid common pitfalls – like inconsistencies between the technical and financial sections, or missing information that could cost points.
• Project Management of the Application: Because an Innovation Fund application has many pieces (technical plan, financial model, environmental analysis, etc.), consultants often act as project managers for the proposal process. They will set timelines, coordinate input from different departments or partners, and check that all forms are correctly filled. They also make sure the final submission is complete and on time, uploading everything to the portal well ahead of the deadline.
• Expertise from Past Successes: Seasoned Innovation Fund consultants have typically been involved in multiple applications and know what a successful proposal looks like. Many are engineers or finance experts who can validate your data or strengthen your business case. For instance, they can review your cost assumptions or suggest improvements to your risk mitigation plan. Some consultancies even offer grant agreement negotiation support if you win. This end-to-end support can be invaluable, especially for first-time applicants or smaller companies with limited in-house proposal capacity.

Is it worth it? While hiring a consultant is an added cost, it can significantly increase your proposal’s quality and success odds. Given the scale of funding at stake (potentially tens of millions of euros in a grant), the investment in professional support often pays off. In past Innovation Fund rounds, many winning projects had expert consultants or writers behind them. For example, regional agencies have helped local companies secure funding – two Bavarian cleantech projects won €91 million in Innovation Fund grants with support. Likewise, several of the 85 projects selected in the 2023 call were prepared with the help of specialized consulting firms. These experts can navigate the process more efficiently and help you avoid mistakes that might derail an otherwise good project.

Of course, using a consultant is not mandatory – many organizations prepare successful applications in-house, especially if they have strong grant writing teams. But if you are new to EU funding or lack the internal resources, engaging an Innovation Fund consultant or proposal writer is a wise consideration. At minimum, you might seek an external review of your proposal before submission to get objective feedback.

• Choosing a consultant: If you do seek external help, look for firms or individuals with a track record in Innovation Fund or similar EU climate/innovation programs. Ask about their success rate, and ensure they understand the technical aspects of your project. Clear agreements on scope (e.g. writing vs. advising) and confidentiality are important. Ultimately, the proposal is yours – but a consultant can be a valuable partner in shaping and communicating your vision.

Key Innovation Fund Deadlines and Calls for 2025 & 2026

Timing is critical when planning your Innovation Fund application. Below are the key dates and deadlines for the 2025 call and what is expected for 2026:

• 2025 Call (IF24): The main Innovation Fund call for what we’re calling the 2025 cycle opened on 3 December 2024, and the deadline to submit applications was 24 April 2025. This call, often referred to as IF24, actually encompasses multiple tracks: a general Net-Zero Technologies call (€2.4 billion budget) and a Battery Manufacturing call (€1 billion) launched simultaneously. Both had the same April 24, 2025 deadline. In parallel, the second hydrogen auction (for green hydrogen projects under the European Hydrogen Bank) was launched on 3 December 2024 with a submission deadline of 20 February 2025. Prospective applicants needed to submit their full proposals by these dates via the EU portal. After submission, the evaluation results are expected in late 2025 (the Commission indicated Q4 2025) and grant awards should be finalized by Q1 2026. That means successful projects from the 2025 call can likely start in early 2026.
• 2026 Call (expected IF25): The European Commission typically launches a new Innovation Fund call each December. Following this pattern, the call for 2026 funding is expected to be published in December 2025. While official details will come in late 2025, applicants can anticipate a similar structure – potentially a large general call (possibly focusing on priority areas aligned with EU climate policy) and maybe specialized calls or auctions (e.g. hydrogen) as the Commission continues its funding strategy. The submission deadline is likely in spring 2026, possibly around April 2026 (indicative). For instance, if the call opens mid-December 2025, the deadline could fall in April 2026 after roughly a 4-month window for applications. Always check the official announcement for the exact date – it will be published on the EU Climate Action site and Funding & Tenders portal. As of now (May 2025), we expect the timeline for the 2026 call to mirror previous rounds: launch in Dec 2025, deadline around April 2026, results by late 2026, and grants signed by early 2027.
• Future Calls: The Innovation Fund will continue beyond 2026 with annual calls up to 2030, subject to the availability of ETS revenue. Each year’s call may have different focus areas or dedicated budgets (the Commission has been aligning calls with initiatives like the Net-Zero Industry Act and REPowerEU). So if your project isn’t ready in time for 2025 or 2026, you can aim for subsequent calls – but note that competition is increasing as the fund gains popularity. Staying informed on the latest call topics and requirements is important (sign up for EU Climate Action newsletters or check their website regularly).

Deadlines are absolute. Missing a deadline means waiting for the next call (usually a year later). So, once call dates are announced, work backwards to plan your proposal preparation. Many successful applicants actually begin developing their proposals months in advance of the call launch. For example, to meet an April deadline, it’s wise to start serious preparations by the previous fall at the latest. Some even start gathering data a year earlier, especially for complex engineering projects.

Finally, beyond the application deadlines, keep an eye on any support activities around the calls. The Commission and CINEA (the agency implementing the fund) often host Info Days, webinars, and “orientation dialogues” for applicants a few weeks after a call opens, where you can ask questions and clarify doubts. These events typically occur in December or January for a call closing in spring. They are announced on the Innovation Fund website and are usually free to join. Taking advantage of these can give you useful insights into what evaluators are looking for and any new elements in a particular call.

Best Practices for a Strong Innovation Fund Proposal

Securing an Innovation Fund grant is challenging – but with the right approach, you can significantly improve your proposal’s chances of success. Here are some best practices and success tips for crafting a winning Innovation Fund proposal:

• Start Early and Plan Thoroughly: As mentioned, preparing the application is a big undertaking (hundreds of pages of documentation) that requires substantial time. Begin organizing your team and tasks as soon as possible – ideally 6+ months before the deadline. Break down the work: technical design, emissions calculations, financial modeling, permits, etc. Create a timeline with internal checkpoints. This ensures you won’t be scrambling last minute. Tip: If the call isn’t open yet, use the previous call’s documents as a guide – the requirements are often similar, and you can draft much in advance.
• Understand the Evaluation Criteria and Tailor Your Proposal Accordingly: Align every section of your proposal with the five criteria (GHG impact, innovation, maturity, scalability, cost). Make it easy for evaluators to see how you excel in each area. For example, dedicate a section to quantifying your greenhouse gas avoidance (with clear calculations and references to the provided methodology) and highlight the figure (e.g. “Our project will avoid ~XXX,000 tonnes of CO₂e per year by 2030”). Underline what is innovative about your technology and how it differs from the state-of-art – remember only projects truly novel relative to current solutions will be financed. Demonstrate project maturity by listing permits, offtake agreements, or partnerships in place, and a solid execution plan (showing the project is essentially ready to build pending funding). Discuss scalability/replicability – e.g. could this be rolled out to 10 other sites, or pave the way for an entire industry’s transition? Provide evidence, if available (letters of interest, etc.). And pay attention to cost efficiency: the grant amount you request should be justified by the climate impact. Projects are scored on euros per tonne of CO₂ avoided, so if your cost per tonne is high, explain why (perhaps it’s a first-of-kind issue that will improve, etc.) and show awareness of cost effectiveness.
• Develop a Solid Business Case: Treat your Innovation Fund proposal like an investment prospectus for a new venture. The evaluators want to see that the project makes sense financially and managerially, not just technically. Include a thorough business plan and financial model – these are mandatory annexes. Show your projected CAPEX, OPEX, revenues (if any), and how the project will achieve long-term viability. If the project isn’t economically viable without carbon pricing or support, be frank but outline how it contributes to learning or future cost reductions. Emphasize co-financing sources: remember the fund typically co-finances up to 60% of the additional costs, so you need to demonstrate where the rest of the investment will come from (e.g. company equity, bank loans, national grants). A clear financing strategy and letters of support from investors or banks can strongly bolster the maturity and credibility of your proposal. Also, detail your project team’s experience – show that the consortium or company has the know-how to deliver this project.
• Highlight the Climate Additionality: The Innovation Fund is about maximizing climate impact. Your proposal should clearly articulate why the project would not proceed (or would have much less climate benefit) without the grant. For example, perhaps the technology has high upfront costs or risks that the market won’t currently finance – hence the need for public support. By making this case, you address the underlying mission of the fund. Use data: e.g., “Without support, our innovative cement plant would operate at a 20% CO₂ reduction; with the Innovation Fund grant, we can achieve 90% reduction, eliminating an extra 500,000 tCO₂/year that would otherwise continue to be emitted.”
• Ensure Technical Soundness and Detail: While the proposal is not an academic paper, it needs to convince experts that your tech is scientifically and technically credible. Provide enough detail on the technology (design, process flow, etc.) to show you have a handle on it. Include results from pilot trials or simulations to back up your claims of performance. If you’re using a novel process, mention any patents or publications, or expert endorsements. At the same time, keep explanations accessible – evaluators may not be specialists exactly in your niche, so explain any special terms or concepts. Use diagrams or charts (the application allows attachments) to illustrate the project design and timelines – a picture can convey a complex process much faster than text.
• Quantify Everything You Can: Wherever possible, provide quantitative evidence. Targets, metrics, and numbers make your proposal more convincing. For emissions, use the official calculation method and clearly state the total GHG emissions avoided over 10 years. For innovation, perhaps quantify efficiency gains (e.g. “50% less energy use than state-of-art”) or other performance improvements. For scalability, give a potential replication scenario (e.g. “if applied to all steel plants in Europe, this technology could mitigate X million tons CO₂ annually”). Hard numbers stick in reviewers’ minds and lend credibility (just ensure they are realistic and sourced).
• Be Clear and Concise: Clarity of writing is crucial. Evaluators have hundreds of pages to read; make their job easier by writing in a structured, concise manner. Use headings and sub-headings that mirror the evaluation criteria or the structure requested in the application form. Use bullet points or tables to summarize key information (e.g. a table of GHG calculations or a timeline of milestones). Avoid unnecessary jargon, and where technical terms are needed, provide a brief explanation. Remember, your proposal is essentially a pitch – it should tell a compelling story of innovation and impact, backed by evidence. Many companies use an Innovation Fund writer or at least have multiple reviewers edit the text for coherence and grammar – poor writing can obscure great ideas, so allocate time for proofreading and refining the narrative.
• Address Potential Risks Openly: Every innovative project has risks – technical failures, cost overruns, regulatory hurdles, etc. The application will typically ask for a risk assessment. Don’t shy away from this; instead, present a thoughtful risk mitigation plan. Identifying risks and proposing solutions (backup plans, additional support needed, phased approach, etc.) shows the evaluators that you are realistic and prepared, further reinforcing project maturity.
• Use the Resources and Templates Provided: The European Commission provides guidance documents, FAQs, and templates for a reason – to help you succeed. Use the official application form template as your outline and make sure you fill every section. Check the Commission’s FAQ or Helpdesk for any clarifications on scope or rules (for example, eligibility of certain costs). Additionally, reviewing the Innovation Fund’s past awarded projects descriptions (available on the official website) can give insight into what successful projects look like. It’s instructive to see summaries of funded projects to gauge the level of innovation and impact they demonstrated.
• Consider External Review or Support: Before submitting, it’s extremely valuable to have someone not directly involved in the writing review your proposal critically. This could be an internal colleague from another team, or an external consultant if you engaged one. They might catch omissions or parts that are unclear. If possible, do a mock evaluation – score your proposal against the five criteria honestly to see where you might be weak and then improve those sections. As noted in the previous section, an Innovation Fund consultant or writer can provide expert feedback and ensure your proposal is polished to a high standard, increasing your chance of success.

By 2025, the Innovation Fund has already financed dozens of cutting-edge projects (77 projects won grants under the 2023 call, plus 6 more from the reserve list), demonstrating that ambitious proposals can succeed. Learning from past successes can inform your own application strategy. Following these best practices will help your Innovation Fund proposal stand out in the competitive evaluation process. A strong, well-prepared application not only scores better, but also instills confidence in evaluators that your team can deliver the project in the real world – a crucial aspect for this fund.

Conclusion: Preparing for Innovation Fund Success

The EU Innovation Fund represents a golden opportunity in 2025, 2026, and beyond for innovators in clean technology and climate solutions. Its substantial funding can turn ambitious projects into reality, accelerating both your business growth and Europe’s path to net-zero emissions. To achieve Innovation Fund success, be proactive: plan ahead, craft a compelling proposal, and leverage all resources at your disposal – including the possibility of an Innovation Fund consultant or expert writer to strengthen your application.

Keep in mind the key deadlines (April 2025, and expected spring 2026 for the upcoming calls) and monitor the official EU channels for any updates or new opportunities. The process is demanding, but the rewards are high – not just in funding, but in prestige and momentum. Projects selected by the Innovation Fund are seen as trailblazers and often attract additional investors, partners, and public attention.

In summary, do your homework, tell a great story backed by solid data, and submit on time. Many organizations have walked this path and secured multi-million euro grants to realize their climate innovation dreams – with careful preparation, your project could be next. Good luck with your Innovation Fund application, and here’s to your potential success in the 2025 and 2026 funding cycles!

Understanding the EU Innovation Fund Application Form

The European Union’s Innovation Fund (INNOVFUND) supports innovative projects focused on low-carbon technologies. Applying for this funding requires navigating a specific application process, primarily through the EU Funding & Tenders Portal. The core of this process is the Application Form, a comprehensive document designed to capture all necessary administrative and technical details about a proposed project. This article provides a detailed overview based on the provided Version 4.0 (dated 15 November 2024) of the INNOVFUND Standard Application Form template. It’s important to note that this document serves as an example, and the actual forms available on the Portal may differ.

Structure of the Application Form

The application form is divided into two main parts:

1. Part A: Administrative Forms: This section contains structured administrative information about the project and its participants. It is generated automatically by the IT system based on the data entered by the applicant directly into the Portal Submission System screens.
2. Part B: Technical Description: This is a narrative description of the project’s technical aspects. Applicants must download the template from the Portal, complete it, and upload it as a PDF file, along with any required annexes.

Part A: Administrative Forms – Key Sections

Part A must be filled out directly online via the Portal. While the provided document is an example and not to be completed, it outlines the typical sections:

• General Information: Includes the call identifier, topic, type of action, proposal details (acronym, title, duration), abstract, keywords, and information on previous submissions. The proposal title should be understandable to non-specialists.
• Participants: Lists all participating organisations involved in the project. Detailed information for each participant is required, including legal name, address, legal status (public body, non-profit, SME status, etc.), and department details.
• Budget: An overview of the requested grant amount per beneficiary.
• Other Questions: This section may include details about project implementation locations and specific calculations related to the project’s goals, such as Greenhouse Gas (GHG) emission avoidance (absolute and relative) and cost efficiency.
• Declarations: Applicants must make several declarations, confirming:
  • Consent from all participants.
  • Correctness and completeness of information.
  • Compliance with eligibility criteria, absence of exclusion grounds, and financial/operational capacity.
  • Acknowledgement of communication via the Portal and acceptance of its Terms & Conditions and Privacy Statement.
  • For Lump Sum Grants, confirmation that the budget reflects usual cost accounting practices and excludes ineligible costs.
  • Understanding that false statements can lead to administrative sanctions.
  • The coordinator is responsible for their information, and each applicant for their own. A declaration of honour will be required if the proposal is funded.

 

The system includes validation checks, showing errors (which block submission) or warnings (which do not block submission but indicate missing/incorrect values).

Part B: Technical Description – Core Components

Part B requires a detailed narrative description and must adhere to specific formatting rules (e.g., page limits, font size, margins). Exceeding the page limit (typically 70 pages unless otherwise specified) will result in excess pages being disregarded. Hyperlinks should not be used for essential information.

Key sections within Part B include:

1. Project and Applicants (Section 0): Provides background, rationale, objectives, introduces the consortium members, and outlines the project’s technical characteristics (location, technology, inputs, outputs). It also details the technology scope, construction, operation, maintenance plans, safety, reliability, and technical performance. For battery-related calls, specific details on chemistry and performance are needed.
2. Degree of Innovation (Section 1): Describes the project’s innovation relative to the current commercial and technological state-of-the-art, focusing on European or relevant global levels. It must explain how the project goes beyond incremental innovation, referencing data from the feasibility study annex and detailing expected increases in readiness levels and barriers to overcome.
3. GHG Emission Avoidance Potential (Section 2): Requires calculation of both absolute and relative GHG emission avoidance potential over 10 years post-operation, using the official methodology and calculator template. Assumptions for reference and project scenarios must be explained. Results must be consistent with Part C and the cost efficiency calculation. For projects under the EU ETS, emissions must be below the relevant benchmark. Projects using biomass must meet sustainability requirements. For battery projects, this section includes the manufacturing carbon footprint, though it’s also assessed separately.
4. Manufacturing Carbon Footprint Reduction (Section 3, n/a for NZT call): Similar to GHG avoidance, this requires assessment and calculation using the specified methodology and template, detailing assumptions.
5. Project Maturity (Section 4): Assesses the project’s readiness across technical, financial, and operational dimensions.
   • Technical Maturity: Evidence of technology readiness, technical feasibility, risk assessment, and mitigation, supported by a mandatory feasibility study annex and potentially due diligence reports.
   • Financial Maturity: Focuses on the business plan’s robustness, financing structure, and funder commitments. Requires annexes like a detailed budget/relevant cost calculator, business plan, financial model, and potentially shareholder statements and support documents. Summaries of the business proposition, cash flow projections, profitability (pre/post-grant), sensitivity analysis, financing plan, and funder commitments are needed.
   • Operational Maturity: Demonstrates a comprehensive and realistic implementation plan. Details include the implementation timeline (Gantt chart required), key milestones (financial close, entry into operation), permitting strategy, operational strategy (maintenance, capacities), project management team (qualifications, skills), and project organisation (structure, governance, quality/safety processes). Information on intellectual property, permits, public acceptance, and environmental impacts is also required. A project diagram illustrating stakeholder relationships is expected.
   • Risk Management: Details critical risks and the strategy to manage them, referencing the business plan and feasibility study.
6. Replicability (Section 5): Describes the project’s potential for wider application. This includes addressing resource constraints (e.g., critical raw materials, biomass) through efficiency or circularity, potential for positive environmental impacts beyond GHG reduction (e.g., biodiversity, pollution reduction), and potential for deployment at other sites or across the economy. Quantification of expected emissions avoidance from replication is needed. It also covers contribution to Europe’s industrial leadership and competitiveness. Plans for knowledge sharing, communication, dissemination, and ensuring visibility of EU funding are outlined here.
7. Security of Supply and Countering Dependency (Section 6, n/a for NZT call): Explains the project’s contribution to securing supply chains and reducing dependencies as per the Call document.
8. Cost Efficiency (Section 7): Requires calculation of the cost efficiency ratio (Total requested grant + other public support / Absolute GHG avoidance over 10 years). This involves submitting detailed relevant cost calculations using the provided financial information file template and explaining the methodology used (e.g., standard or reference plant). The maximum grant cannot exceed 60% of relevant costs.
9. Bonus Points (Section 8, n/a for BATTERIES call): Addresses any applicable bonus points mentioned in the Call document, requiring substantiation.
10. Work Plan, Work Packages, Activities, Milestones, Deliverables, and Timing (Section 9): Provides a detailed breakdown of the project’s execution plan.
    • Work Plan Overview: A list or chart of all work packages (WPs) with durations, deliverables, and milestones.
    • Work Packages: Detailed descriptions of each WP. WPs are major sub-divisions with objectives, activities, milestones, and deliverables. Mandatory sequential WPs include: Up to Financial Close (WP1), Between Financial Close and Entry into Operation (WP2), and annual WPs for the operational/reporting phase (Years 1-3 or 1-X depending on the call). Additional WPs can be created by subdividing these.
    • Activities: Specific tasks within each WP, showing participant involvement (Coordinator, Beneficiary, etc.). WP1 should detail documents needed for financial close.
    • Milestones & Deliverables: Milestones are key control points. Mandatory milestones triggering payments include Financial Close (end of WP1), Entry into Operation (end of WP2), and annual GHG reporting (end of operational WPs). Means of verification for milestones are required. Deliverables are project outputs submitted to show progress, with defined due dates and dissemination levels (Public, Sensitive, EU Classified). Specific mandatory deliverables are listed in the Call document.
    • Budget & Timing: References the detailed budget/relevant cost calculator and requires an attached timetable/Gantt chart.
11. Other (Section 10): Typically includes sections on Ethics and Security, often marked as ‘Not applicable’ in the template.
12. Declarations (Section 11): Includes confirmations regarding patents, prohibition of double funding (confirming no other EU grants cover the same costs), consent for potential Project Development Assistance (PDA) assessment by the EIB, agreement to be considered for national funding schemes (sharing proposal with national authorities), and consent to share basic project information with Member States.

Submission and Annexes

• The application must be prepared by the consortium and submitted online via the Portal by a representative before the deadline.
• Mandatory annexes include the detailed budget table/relevant cost calculator (Financial information file) and a timetable/Gantt chart. Other annexes like the feasibility study, business plan, and financial model are required as part of the Part B sections.

This detailed breakdown provides a comprehensive overview of the requirements and structure of the EU Innovation Fund Application Form based on the provided template document. Applicants should always refer to the specific Call document and the live forms within the Funding & Tenders Portal for the most accurate and up-to-date information.

Crafting a Comprehensive Business Plan for Innovation Fund Applications

The provided document outlines a template for a detailed Business Plan, designed for submission as part of an application to the Innovation Fund. While using this specific template is recommended but not mandatory, applicants must ensure they provide a comparable level of detail and information for a thorough assessment. If any section is deemed not applicable, it should be marked and justified.

This business plan serves as a critical tool for evaluating the viability, financial soundness, and overall potential of a proposed project seeking funding. It requires a deep dive into various aspects of the project, from its core concept to risk management strategies.

1. Project Identification

The plan begins with the fundamental identification of the project, requiring the clear statement of the project’s full name and its acronym.

2. Business Proposition

This core section demands a clear articulation of the project’s business case:

• Product or Business Concept: Describe the underlying business model, the unique value proposition of the project compared to existing solutions, and its alignment with the company’s overall strategy.
• Targeted Market and Market Potential: Provide an overview of the general market and the specific market potential the project targets. This includes outlining the relevant regulatory environment and explaining how the project addresses market gaps, generates new demand or markets, expands existing ones, or adds value to current products/services.
• Commercialisation Strategy and Market Uptake: Detail the anticipated demand for the proposed products or services, identify key customer segments, and discuss any potential market entry barriers.
• Competitive Landscape: Outline the main competitors and alternative solutions currently in the market.

3. Financial Assumptions

Transparency and justification are key in this section. Applicants must explain the assumptions behind their financial projections:

• Breakdown: Detail expected revenues, capital expenditure (CAPEX), and operational expenditure (OPEX) as used in the accompanying financial information file and the applicant’s detailed financial model. Projections must cover the project’s entire lifetime.
• Contingencies: Include a detailed justification for any contingencies applied to CAPEX and OPEX estimates.
• Underlying Data: Explain assumptions regarding volumes and prices related to off-takers, suppliers, and contractors. Crucially, precise references must be made to supporting documents (like feasibility studies or contract terms) that substantiate these assumptions. An overview table summarizing main parameters (value, unit, justification, document reference) is required.

4. Project Counterparties and Contract Strategy

Understanding the ecosystem of the project is vital:

• Project Diagram: Include a diagram illustrating the relationships between all project parties (sponsors, shareholders, lenders, off-takers, suppliers, contractors, advisors, insurers, etc.) and the project itself. If a Special Purpose Vehicle (SPV) is used, it should be specified. Legal and contractual relationships should be outlined.
• Description of Project Counterparties: Describe each counterparty, their role, contribution, and their technical, financial, and commercial standing (including track record, key financials, and credit ratings where available).
• Robustness and Strategy to Secure Contracts: Detail the main terms of indicative or secured supply, construction, and off-take agreements. Explain the strategy and current status for securing all key commercial contracts necessary for the operational phase.

5. Detailed Cash Flow Projections and Project Profitability

This section focuses on the project’s financial performance:

• Cash Flow Projections: Describe the project’s cash flow projections as presented in the financial information file’s output sheets.
• Expected Project Profitability: Explain the project’s viability using Net Present Value (NPV) and Internal Rate of Return (IRR) calculations, both before and after the requested Innovation Fund support, estimated over the project’s lifetime. Justify the Weighted Average Cost of Capital (WACC) used and the achievability of the assumed debt-to-equity ratio.

6. Sensitivity Analysis

Applicants must assess how project profitability (NPV or IRR) is affected by key identified risks, demonstrating an understanding of potential financial vulnerabilities.

7. Financing Plan

A clear picture of how the project will be funded is required:

• Funding Sources and Uses: Describe the project’s funding sources (equity, debt, public subsidies) and their intended uses, ensuring reconciliation with the summary chart in the financial information file. Specify the type, amount, and provider for each funding source.
• Financing Structure: Explain the equity injection plan, details of any debt financing (corporate or project level, recourse level), and justify expected debt terms based on project risks and cash flows. Provide supporting letters from financiers if possible.
• Allocation of Innovation Fund Grant: Explain how the requested grant’s lump-sum breakdown aligns proportionally with activities, work packages, and project milestones.

8. Project Funders and Investor Commitment

Demonstrating robust financial backing is essential:

• Description of Financing Parties: Describe each funding provider, their contribution amount, and the financial standing of project shareholders (referencing submitted financial statements).
• Terms of Support and Strategy to Secure Financing: Detail the status of securing all funding sources. Describe the conditions of support from each funder and the ownership structure. Reference supporting documents (MoUs, LoIs, commitment letters) confirming the credibility and commitment of funders. For projects with lower profitability or higher risk, credible evidence of shareholder support throughout the project lifecycle, including covering potential shortfalls, is crucial.
• Financial Close Timeline: Justify the planned date for financial close, outlining milestones achieved and outstanding tasks, demonstrating the ability to meet deadlines set out in the Call document.

9. Risk Analysis and Management

A thorough risk assessment is mandatory:

• Business Risks: Identify and describe the main risks related to the business plan that could impact viability, using the provided table format (Risk No, Type, Description, Likelihood, Impact, Ownership, Mitigation Measures).
• Financing Risks: Similarly, identify and describe main risks related to the financing plan using the table format, also outlining any contingency funding sources.
• Risk Heat Map: Include a visual risk heat map summarizing the likelihood and impact of the main identified risks.

In conclusion, the Innovation Fund business plan template demands a comprehensive, well-documented, and realistic portrayal of the project’s business case, financial structure, and risk landscape. Addressing each section with the required level of detail is paramount for a successful application.