Large-scale production of liquid advanced biofuels and renewable fuels of non-biological origin

The core objective of this grant is to demonstrate the innovative large-scale production of liquid advanced biofuels and/or renewable fuels of non-biological origin (RFNBOs). This aims to address the specific needs of sectors such as aviation, shipping, and energy-intensive industries by facilitating the deployment of technologies that are close to market but require real-world demonstration of economic viability.

Funding Organization: The funding is provided by the European Commission, under the broader framework of Horizon Europe.

Target Recipients: This call targets a broad range of entities, including energy producers, technology developers, technology providers, industrial stakeholders, public authorities, citizens, and researchers. The focus is on mobilising industrial capacity and preparing for the building and operation of first-of-a-kind full-scale plants.

Sector Focus: This grant is SECTOR-SPECIFIC, with a primary focus on renewable energy and fuels for the aviation, shipping, and energy-intensive industries. It also covers sustainable biomass feedstocks (biogenic residues, wastes) and non-biological origin feedstocks (renewable hydrogen, CO2, renewable carbon).

Geographic Scope: The grant is open to entities from EU Member States and Associated Countries. Additionally, certain non-EU/non-Associated Countries may have specific provisions for funding availability, as detailed in the Horizon Europe Programme Guide.

Key Filtering Criteria: Projects must involve large-scale production and demonstration of advanced biofuels or RFNBOs, leading to ready-to-deploy, first-of-a-kind plants. A strong investment and business case, including an exploitation and dissemination plan with scalability, commercialisation, and identified funding sources, is crucial. Projects should conduct a lifetime cycle analysis and assess sustainability and GHG reduction potential, particularly using the Innovation Fund methodology. Impact on land and water use, soil, and biodiversity, as well as public awareness, are also key considerations.

This grant, a Horizon Innovation Action (IA), provides funding as an action grant under the Horizon Europe programme. It operates on a budget-based mixed actual cost system, which may include unit costs, flat-rates, or lump sums.

Funding Range

• Total Budget for the Topic: EUR 33,000,000.
• Minimum Grant Amount per project: EUR 11,000,000.
• Maximum Grant Amount per project: EUR 11,000,000.
• Expected Number of Grants: 3.
• Currency: EUR.

Co-financing

• Funding Rate: Typically, the funding rate for Innovation Actions is up to 100% of eligible costs for non-profit legal entities and up to 70% for for-profit legal entities. This rate applies to the eligible direct costs, with contributions not subject to a funding rate.

Eligible Costs

Costs must be actually incurred, within the project period, declared under eligible categories, connected to the action, identifiable/verifiable, compliant with national law, and reasonable/justified. Key eligible cost categories include:
* Personnel costs: Costs for employees, natural persons under direct contract, seconded persons, and SME owners not receiving a salary. Calculated based on daily rates and day-equivalents worked on the action.
* Subcontracting costs: For specific action tasks. Must ensure best value for money and absence of conflicts of interest.
* Purchase costs: Covers travel and subsistence (actual costs), equipment (typically depreciation only, with options for full cost), and other goods, works, and services. Travel costs for kick-off/closing meetings, even if partly before/after the action duration, may be eligible.
* Other cost categories: May include financial support to third parties (generally up to EUR 60,000 per recipient unless specified), internally invoiced goods and services, and access to research infrastructure unit costs.
* Indirect costs: Reimbursed at a flat-rate of 25% of the eligible direct costs (categories A-D, excluding volunteers' costs, subcontracting costs, financial support to third parties, and exempted specific cost categories).
* In-kind contributions for free: Under specific Horizon Europe conditions, costs incurred by third parties providing in-kind contributions for free can be declared as eligible direct costs by beneficiaries, provided they are set out in Annex 1.
* Costs for reporting: Costs related to drafting and submitting the final report, including certificates on financial statements and participation in project reviews, are eligible even if incurred after the action duration.
* Costs for security measures: Eligible if directly connected and necessary for the action, declared under appropriate categories.
* Costs for disabled people's participation: Eligible if fulfilling general and specific eligibility conditions, e.g., sign language interpreters or accessible equipment.

Ineligible Costs

• Costs not fulfilling general eligibility conditions.
• Return on capital, debt service charges, provisions, interest owed, currency exchange losses.
• Bank costs for transfers from the granting authority, excessive expenditure.
• Deductible VAT.
• Costs incurred during periods of suspension or already declared under other EU grants (with specific exceptions).
• Costs related to preparing, submitting, and negotiating proposals (incurred before the action starts).
• Activities violating the Grant Agreement, call conditions, applicable law, or EU values (e.g., specific unethical research activities).

Payment & Reporting

• Payment Schedule: Includes initial pre-financing, potential additional pre-financing, interim payments, and a final payment. The Mutual Insurance Mechanism (MIM) contribution (typically 5% of the maximum grant amount) is retained from the initial pre-financing.
• Reporting: Continuous reporting via the Funding & Tenders Portal and periodic reporting (technical reports and financial statements) are required. All financial statements must be in Euro.
• Certificates on Financial Statements (CFS): Required for interim and/or final payments if the EU contribution to costs claimed by a beneficiary (or an affiliated entity) reaches or exceeds a certain threshold (e.g., EUR 430,000).

To be eligible for this grant, applicants must fulfill several formal and operational criteria as outlined in the Horizon Europe Work Programme General Annexes and the Model Grant Agreement (MGA).

Formal Criteria

• Admissibility Conditions: Proposals must adhere to page limits and layout specifications described in Part B of the Application Form and Annex A of the Horizon Europe Work Programme General Annexes.
• Eligible Countries: Participation is generally open to entities from EU Member States and Associated Countries. For specific provisions regarding non-EU/non-Associated Countries, applicants should consult the Horizon Europe Programme Guide (Annex B of the Work Programme General Annexes).
• Financial and Operational Capacity: Applicants must demonstrate the technical and financial resources necessary to successfully implement the proposed project. This assessment is project-specific and will verify if participants have sufficient capacity at the time of project implementation (Annex C of the Work Programme General Annexes).
• Consortium Requirement: This grant is structured as a collaborative project under Horizon Europe Innovation Actions, implying that a consortium is generally required. The MGA states that a consortium agreement is usually mandatory.

Organizational Status

• Applicants can include various entities such as energy producers, technology developers, technology providers, industrial stakeholders, public authorities, and research organizations. This broadly covers categories like STARTUP, SME, ENTERPRISE, PUBLIC, and UNIVERSITY.
• Entities must have a validated Participant Identification Code (PIC) in the Funding & Tenders Portal Participant Register.
• Gender Equality Plan (GEP): Public bodies, higher education establishments, and research organizations from Member States and Associated Countries must have a GEP in place before signing the grant agreement (for calls with deadlines in 2022 and beyond).

Technical Expertise

• Proposals should demonstrate the capacity for innovative large-scale production of advanced biofuels and RFNBOs.
• Expertise in utilizing various sustainable feedstocks (biogenic residues, wastes, renewable hydrogen, CO2, renewable carbon) and different chemical, biochemical, biological, and thermochemical pathways is expected.
• The project team should possess the skills for plant design, feedstock pretreatment, wastewater treatment, and overall process optimization.
• Capacity to perform a lifetime cycle analysis and assess GHG reduction potential is essential.
• Experience in developing robust investment and business cases for commercial plant deployment is required.

Exclusion Criteria

• Production of renewable hydrogen as an end-product is explicitly excluded from the scope of this topic.
• Projects must have an exclusive focus on civil applications. Military applications are excluded.
• Activities involving human cloning for reproductive purposes, genetic heritage modification (except for cancer treatment of gonads), the creation of human embryos solely for research/stem cell procurement, or the destruction of human embryos are prohibited.
• Activities conducted outside the EU must be allowed in at least one EU Member State. Non-compliance with ethical principles, research integrity standards, or applicable laws will lead to exclusion.

Applying for this Horizon Europe Innovation Action involves a structured online process, requiring detailed documentation and adherence to specific deadlines and post-award obligations.

Deadlines

• Planned Opening Date for Submission: 2025-09-16 00:00:00+00:00 (UTC).
• Submission Deadline: 2026-02-17 01:00:00+01:00 (CET). This is a single-stage submission process.

Required Documents

Applicants must prepare and submit their proposal in two main parts:
* Part A (Administrative Forms): Generated by the IT system on the Funding & Tenders Portal, based on information entered online. This includes general information (acronym, title, duration, keywords, abstract, previous submissions), participant details (list, contact persons, organization data, specific legal statuses, links with other participants, researchers involved, role in project, relevant publications/projects/infrastructure, Gender Equality Plan status), budget overview (estimated expenditure and income), and ethics/security declarations.
* Part B (Technical Description): A narrative document uploaded as a PDF. This part should not exceed 45 pages (or 50 pages for lump sum topics) and must address the evaluation criteria: 'Excellence', 'Impact', and 'Quality and efficiency of the implementation'. It includes the project's objectives, methodology, pathways to impact, measures to maximize impact (dissemination, exploitation, communication), work plan (Gantt/Pert charts, work package descriptions, deliverables, milestones), critical risk assessment, and details on staff effort, subcontracting, purchase costs, other costs, and in-kind contributions.
* Annexes (if applicable): Separate documents may be required for clinical trials, financial support to third parties, or security-sensitive aspects. Additional ethics information can be provided if the Part A character limit is insufficient.

Application Process

Applications are submitted through the EU Funding & Tenders Portal via an online wizard. The key steps are:
1. Logging in to the Portal.
2. Selecting the call, topic, and type of action.
3. Creating a draft proposal, providing a title, acronym, summary, and main organization contact details.
4. Managing parties, adding partner organizations and contact details.
5. Editing and completing web forms for Part A and uploading the Part B PDF document.
6. Submitting the proposal by the deadline.

Declarations in Part A, including consent on participation, correctness of information, compliance with eligibility criteria, ethical principles, and civil applications focus, are mandatory.

Support

Extensive support is available to applicants:
* Online Manual and Horizon Europe Programme Guide for detailed guidance.
* Funding & Tenders Portal FAQ for common questions.
* Research Enquiry Service for general research inquiries.
* National Contact Points (NCPs) for country-specific guidance and assistance.
* Enterprise Europe Network for business advice, especially for SMEs.
* IT Helpdesk for technical issues with the Portal.
* European IPR Helpdesk for intellectual property advice.
* CEN-CENELEC and ETSI Research Helpdesks for standardization in projects.
* Partner Search tool to find partner organizations for consortium building.

Post-Award Obligations

Successful applicants will have several obligations after the grant award:
* Implementation: Strictly implement the action as described in Annex 1 of the Grant Agreement.
* Reporting: Engage in continuous reporting via the Portal and submit periodic technical and financial reports.
* Record-Keeping: Maintain records and supporting documents for a specified period (typically 5 years after the final payment).
* Visibility & Dissemination: Actively promote the action and its results, acknowledge EU support (displaying the European flag and funding statement), and implement the detailed dissemination and exploitation plan.
* IP Management: Manage intellectual property according to the grant agreement and consortium agreement.
* Gender Equality Plan: For relevant entities, ensure the GEP is in place before grant agreement signature and maintained throughout the project.

The evaluation of proposals for this grant will be based on specific award criteria, scoring, and thresholds, as detailed in Annex D of the Horizon Europe Work Programme General Annexes. An important aspect for this topic is the balanced portfolio approach for awarding grants.

Scoring Factors

Grants will be awarded not only based on ranking but also to ensure at least one proposal from the area of liquid advanced biofuels and at least one from liquid renewable fuels of non-biological origin is funded, provided all thresholds are met and budget is available. A proposal addressing both areas can fulfill this condition.

Innovation & Impact

• Excellence: Proposals must clearly articulate measurable, verifiable, and achievable objectives. They should demonstrate how the project goes beyond the state-of-the-art and highlight its ambition through novel concepts, products, services, or business models. The Technological Readiness Level (TRL) at the start and end of the project must be indicated. The methodology should be sound, with clear identification of challenges and mitigation strategies. Integration of interdisciplinary approaches, including social sciences or humanities (SSH) where relevant, is encouraged. Consideration of the gender dimension (sex and/or gender analysis) in the R&I content is also a scoring factor. Adherence to open science practices and a detailed data management plan (DMP) are required.
• Impact: Projects must effectively explain how their results will create a significant difference beyond the project's duration, contributing to the topic's outcomes and broader scientific, economic/technological, and societal impacts. This includes contributing to the 2030 'Fit for 55' targets (especially for renewable energy and advanced biofuels/RFNBOs share) and the SET Plan. Proposals should quantify contributions where possible, identifying target groups, potential negative environmental outcomes/impacts, and mitigation strategies. A robust plan for dissemination, exploitation, and communication activities is crucial, detailing commercialisation paths for innovation actions, IP management strategies, and feedback to policy measures. Local economic business cases, job creation, and land/water use impact are relevant.

Project Quality

• Quality and efficiency of the implementation: This criterion assesses the work plan and resources. A clear and effective work plan structure, including a Gantt chart or similar for timing, and a graphical presentation of inter-related components (e.g., Pert chart), are expected. Work packages should be substantial and clearly described, with quantified activities and defined roles. Projects must include distinct work packages for project management, data management, dissemination, exploitation, and communication. A comprehensive risk assessment (critical risks, likelihood, severity, mitigation measures) is mandatory. The appropriateness of effort and resources is evaluated, ensuring consistency between person-months, budget, and work description. The capacity of participants and the consortium as a whole is assessed based on disciplinary/interdisciplinary knowledge (including SSH, open science, gender aspects), access to critical infrastructure, and complementary expertise among members.

Strategic Fit

• Projects should align with the Key Strategic Orientations of Horizon Europe: 'Green transition', 'Digital transition', and 'A more resilient, competitive, inclusive and democratic Europe'.
• Contributions to the overall expected impact of the destination, which is to contribute to a more sustainable, secure, and competitive energy supply through renewable energy solutions and smart energy systems, are essential.
• Projects should support the implementation of the Strategic Energy Technology Plan (SET Plan) and its working groups, aiming for climate neutrality in the energy sector by 2050.

Cross-cutting Themes

• Gender: Consideration of the gender dimension in R&I content and the presence of a Gender Equality Plan (GEP) (for eligible entities) are important.
• Sustainability: A life cycle analysis showing the sustainability and GHG reduction from fossil equivalents is required. Projects are encouraged to use the Innovation Fund methodology for estimating GHG emissions. Impact on land and water use, soil, and biodiversity must be assessed.
• Digitalization: Contribution to the 'Digital transition' and facilitation by digital technologies are noted as expected impacts.

This grant operates within the comprehensive regulatory framework of Horizon Europe, demanding strict adherence to compliance standards, ethical principles, and specific project characteristics.

Regulatory Compliance

• General Compliance: Projects must comply with all applicable EU, international, and national laws, including the EU Charter of Fundamental Rights and the European Convention on Human Rights.
• Ethics and Values: Adherence to the highest ethical standards and EU values (human dignity, freedom, democracy, equality, rule of law, human rights) is mandatory. Prohibited activities include human cloning for reproductive purposes, genetic heritage modification (except for cancer treatment of gonads), creation of human embryos solely for research/stem cell procurement, and destruction of human embryos.
• Data Protection: Compliance with applicable EU, international, and national data protection laws (e.g., GDPR) is required.
• Civil Applications: The project must have an exclusive focus on civil applications. If dual-use items are involved, applicants must confirm compliance with the relevant regulatory framework (e.g., obtaining licenses).
• Financial Regulation: Compliance with the EU Financial Regulation 2024/2509 regarding financial and operational capacity, exclusion criteria, and accounting practices.

IP Policy

• Ownership and Access Rights: The grant agreement outlines rules regarding access rights to background and ownership/rights of use of results. The granting authority does not obtain ownership of the project results.
• Consortium Agreement: A consortium agreement is typically required and essential for defining IP ownership, access rights among partners, and exploitation strategies.
• Exploitation Strategy: The exploitation plan should detail foreseen intellectual property protection measures (e.g., patents, design rights, copyright, trade secrets) and how these measures support commercialization and deployment.

Unique Aspects

• Balanced Portfolio Award: To ensure diversity, grants will be awarded to at least one project focusing on 'liquid advanced biofuels' and at least one on 'liquid renewable fuels of non-biological origin', provided all thresholds are met.
• First-of-a-Kind Plants: Projects are expected to result in 'reference cases' for ready-to-build, revamp/reuse, and/or operate full-scale production plants. This highlights a strong emphasis on industrial-scale demonstration and market readiness.
• Comprehensive Business Case: A strong investment and business case, a sound exploitation strategy, and identified funding sources (e.g., private equity, InvestEU, Innovation Fund, ERDF) for Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) are critical. This must include 'take-off agreements' for fuel uptake.
• Sustainability Assessment: Projects must include a lifetime cycle analysis, specifically assessing the GHG reduction potential (encouraged to use Innovation Fund methodology) and impact on land and water use, soil, and biodiversity.
• Local Impact: Proposals should outline at least one relevant local economic business case, detailing local value and supply chains and the expected number of local jobs at the deployment site.
• Public Awareness: Projects are expected to provide information and assessment of impact on public awareness regarding full-scale renewable fuel plants.

Industry-Specific Rules

• Given the focus on biofuels and renewable fuels, projects will be subject to specific regulations pertinent to the energy and transport sectors (aviation, shipping), including those related to sustainable biomass feedstocks and environmental standards.