Companies have until 30 November 2024 to submit projects under the new “Federal Funding for Industry and Climate Protection (BIK)” funding guideline. Two funding modules are available: Funding for decarbonisation projects and funding for CCU and CCS.
The new ‘Federal Funding for Industry and Climate Protection’, or BIK for short, is intended to support medium-sized industrial companies in particular with decarbonisation in the future. According to current planning, around 3.3 billion euros are available for the funding programme for the entire duration of the programme. Module 1 is the continuation of the ‘Decarbonisation in Industry’ programme, which has funded 29 projects throughout Germany with a volume of around 578 million euros. The first call for funding started on 2 September 2024. Companies have until 30 November 2024 to submit projects. Two funding modules are available under the BIK:
Funding for decarbonisation projects (Module 1)
Funding is available for investment projects by all industrial companies that reduce the direct CO2 emissions of the funded plant or process steps by at least 40 per cent. The funding recipients must have a permanent establishment or branch in Germany, as the project must also be implemented in Germany. The additional investment costs with total investment costs of over 500,000 euros for small companies and over 1 million euros for other companies are eligible for funding, which is determined by comparing the costs of the investment with those of the counterfactual scenario. The maximum subsidy is up to 200 million euros per company. Funding is also available for research and development for systems that can achieve corresponding savings of 40 per cent. The funding intensity is up to 25 per cent for experimental development (max. 25 million euros) and up to 50 per cent for industrial research (max. 35 million euros) and feasibility studies (max. 8.25 million euros), and is a further 10 or 20 percentage points higher for medium-sized and small companies.
- Module 1 is aimed at companies in the energy-intensive basic materials industry, such as the chemical basic materials industry, the steel and foundry industry, glass industry, ceramics industry, paper and pulp industry, cement and lime industry. However, funding is expressly not limited to these areas.
- The project sponsor for Module 1, the Competence Centre for Climate Protection in Energy-Intensive Industries (KEI)
Promotion of CCU and CCS (Module 2)
In line with the key points of the Carbon Management Strategy, which were approved by the cabinet on 29 May 2024 and which define Germany’s approach to the capture, storage and use of CO2 (CCS/CCU), there is a funding opportunity for CCS/CCU investment projects and innovation projects (application-oriented research and development). Funding is limited to CO2 emissions that are difficult to avoid. In the first funding call, investment projects in the lime, cement and thermal waste treatment sectors are eligible for funding; innovation projects can also be funded in the basic chemicals, glass and ceramics sectors. BIK is thus making an initial contribution to implementing the key points of the Carbon Management Strategy.
- Investment projects are eligible for funding of up to 30 million euros and 30 per cent of the eligible costs. Research projects are funded with up to 50 per cent of the eligible costs and 35 million euros.
- The project management organisation for Module 2 is Project Management Jülich, PtJ.
Further Information