Bioeconomy production facilities; application for funding.

Companies that invest in production plants for the material use of biogenic raw materials with a positive climate effect can apply for funding in the BayBioeconomy Scale-Up funding program.

Description

Purpose

In order to achieve the sustainability goals of the UN Agenda 2030, the development of a sustainable bio-based economy is required. To achieve this, industrial production processes must be converted to the use of renewable raw materials. The promotion of scale-up plants for the material use of renewable raw materials is intended to increase the willingness of companies to invest. The investments should generate new value chains and jobs and strengthen value creation in rural areas.

Object

Investments in production plants for the material use of renewable raw materials (e.g. biorefineries, bioproduct plants) with a positive climate effect are supported. Biorefinery concepts that use biogenic residues to increase resource efficiency or combine material and energy use are eligible for funding, provided that the focus of value creation is on material use.

Beneficiaries

Eligible applicants are commercial enterprises that have their registered office, a branch office or an operating facility in the Free State of Bavaria at the time of approval, in which the subsidized measure will also be used.

Eligible costs

Eligible costs for funding under No. 2.1 of the BayBioökonomie-Scale-Up Guideline are investment costs (plant and machinery, operating and office equipment) for setting up the production facility.

In the case of funding in accordance with No. 2.2 of the BayBioeconomy-Scale-Up Guideline, the project-related additional investment costs are eligible for funding compared to a reference technology (conventional production plant that processes fossil raw materials). Usually, additional investment costs of up to 10% of the total investment costs are recognized; in exceptional cases, especially in the case of a particularly high climate protection effect of the plant (at least 80% GHG savings or high effect in relation to the investment costs), particularly pronounced job effects or projects of particular importance in terms of location policy, up to 20% of the total investment costs can be recognized as additional investment costs.

Type and amount

The subsidy is provided in the form of a grant as part of project funding.

Funding rate for investments by small and medium-sized enterprises (SMEs) (No. 2.1): up to 10 % of eligible expenditure in the case of medium-sized enterprises and up to 20 % in the case of small enterprises.

Funding rate for funding in accordance with Art. 36 General Block Exemption Regulation (AGVO) (No. 2.2): up to 40 % of the eligible expenditure (additional investment costs), the funding rate is increased by up to 10 % for medium-sized companies and by up to 20 % for small companies.

Prerequisites

  • The plant must reduce greenhouse gas emissions by at least 50 percent compared to conventional plants for comparable end products. This must be demonstrated by greenhouse gas certification (e.g. according to ISO 14064), taking into account the raw materials/precursors (including their production and transport).
  • The organic raw materials used in the promoted plant must be predominantly of biogenic origin (at least 60 percent). The sustainability of the raw materials must be proven throughout the entire useful life of the plant by means of suitable certification (e.g. ISCC-PLUS or REDcert2 for agricultural products and for wood PEFC/FSC or an equivalent certificate).
  • A proof-of-concept must already have been provided for the production process on a demonstration scale; only projects from TRL 8 are funded.
  • The production plant must be built in Bavaria.
  • The eligible expenditure must amount to at least EUR 250,000.
  • The project must not have been started before the Government of Lower Bavaria has received a verifiable application. As a rule, the submission of a binding declaration of intent to conclude a supply or service contract attributable to the execution of the project is deemed to be the start of the project. Planning, certification and approval procedures are not considered to be the start of the project.

Procedure

The application process has two stages and begins with the submission of the outline to the government of Lower Bavaria as the granting authority (stage 1: outline phase).

  • The outline submissions must fit thematically to the respective funding call.
  • The draft proposals are reviewed and evaluated by experts.

In the second stage of the process, the Bavarian State Ministry of Economic Affairs, Regional Development and Energy will invite the selected outlines to submit formal applications for funding (stage 2: application phase).

Special notes

The project outlines must be technically meaningful and enable the reviewers to assess the selection criteria. The selection criteria can be found in particular in No. 4.1, 4.4 and 7.1.2 of the BayBioEconomy Scale-Up guideline.

Deadlines

Pre-proposals can be submitted until April 1 and October 1 of each year.

The selected outline proposals will be invited to submit formal applications for funding. Beginning June 1, 2022, grant application submissions will be accepted June 1 and December 1 of each year.

Required documents

  • The following documents are required:

    • Application outline, detailed enough for evaluation of all selection criteria
    • Annual financial statements of the applicant company for the last three years
    • In case of funding according to No. 2.2 of the guideline: information on the additional investment costs compared to reference technology based on fossil raw materials

Fees

  • none

Status: 04.04.2022

Responsible for editing: Bayerisches Staatsministerium für Wirtschaft, Landesentwicklung und Energie

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