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Grant Analysis

Purpose & Target

The core objective of this grant is to prepare demonstration missions for collaborative Earth Observation (EO) and Satellite Telecommunication (SatCom) for space solutions. It aims to strengthen the competitiveness of the European Space Industry by enabling new commercial services and applications through increased digitalisation of space solutions, particularly focusing on advanced EO payloads and optimized data flow. This is a SECTOR-SPECIFIC grant within the Space and Digital sectors, targeting industry, SMEs, and research institutions located in EU Member States and Associated Countries. Key filtering criteria include a focus on mid to high TRL (Technology Readiness Level) developments and digital advancements for end-to-end SatCom and EO systems. The grant is part of the recurring Horizon Europe Work Programme 2025 and the co-programmed European Partnership on Globally Competitive Space Systems (GCSS).

Financial Structure

Funding Type: Lump Sum Grant. Payments are based on the proper implementation of work packages, not on actual costs incurred.
Budget Range (Per Grant): Projects are expected to receive between 2,000,000 EUR and 6,000,000 EUR per grant.
Total Budget for Topic: The total indicative budget for this topic (HORIZON-CL4-2025-02-SPACE-32) in 2025 is 11,000,000 EUR, with 3 expected grants.
Currency: EUR (Euro).
Eligible Costs: Applicants propose a lump sum based on estimated direct and indirect costs. Eligible cost categories include personnel costs, subcontracting costs, purchase costs (travel, equipment, goods, works, services), and other cost categories (e.g., financial support to third parties, internally invoiced goods and services, research infrastructure access, procurement costs).
Indirect Costs: A 25% flat rate for indirect costs is applied to eligible direct costs and is included in the lump sum calculation.
Financial Guarantees: Between 5% and 8% of the total lump sum is retained as a contribution to the Mutual Insurance Mechanism.
Payment Schedule: Lump sum contributions are paid per work package once its conditions have been properly met. If conditions are not met, payment for that work package may be withheld.
Financial Reporting: There is no obligation to report actual costs. Financial checks and audits are minimized, focusing instead on the technical implementation and fulfillment of work package conditions.
Co-financing: The total estimated costs of the action in the proposal must be greater than the estimated Union contribution. Reimbursement rates reflect this co-financing principle.

Eligibility Requirements

Organizational Eligibility

Eligible Organization Types: Industry, SMEs (Small and Medium-sized Enterprises), research institutions, universities, non-profit organizations, and public entities.
Geographic Location: Organisations established in EU Member States and countries associated with Horizon Europe are eligible for funding. Specific provisions may allow funding for participants from certain non-EU/non-Associated Countries, as detailed in the Horizon Europe Programme Guide.
Consortium Requirements: Proposals are expected to promote cooperation between different actors (industry, SMEs, and research institutions). This implies a preference for consortia.
Financial and Operational Capacity: Must meet the criteria described in Annex C of the Horizon Europe Work Programme General Annexes.

Project Specific Requirements

Technology Readiness Level (TRL): Developments must be at a mid to high TRL.
Mandatory Technology Use: If projects involve satellite-based Earth Observation, positioning, navigation, and/or related timing data and services, beneficiaries must make use of Copernicus and/or Galileo/EGNOS data/services. Other data and services may be used additionally.
Synergies and Complementarity: Projects must explore synergies and be complementary to existing funded actions in critical space technologies, satellite communication technologies, and Earth Observation end-to-end technologies. Proposals should clearly present how they utilize existing European technologies and building blocks to contribute to European non-dependence and strengthen competitiveness.
Contextual Alignment: Activities should be complementary to H2020 and Horizon Europe funded projects, national activities, and activities funded by the European Space Agency (ESA).

Exclusion Criteria

Communication Networks: Projects are subject to restrictions for the protection of European communication networks.
STEP Seal Validity: The STEP Seal (awarded to eligible proposals) will expire if the project is relocated outside the Union or if it has not started within 5 years after the award of the Seal.

Application Process

Application Timeline

Submission Window: Opens on 2025-05-22.
Application Deadline: The deadline for submitting proposals is 2025-09-25T00:00:00.000+0000.
Evaluation & Grant Agreement Timeline: Indicative timelines are described in Annex F of the Horizon Europe Work Programme General Annexes.

Application Procedure

Submission Format: Proposals must be submitted online via the dedicated Electronic Submission Service on the Funding & Tenders Portal.
Procedure: Single-stage submission process.
Required Documentation:
- Standard application form for Horizon Innovation Actions (HE IA).
- Part B of the application form, detailing proposal layout and page limits.
- Detailed budget table (HE LS) for lump sum proposals.
- Declaration that applicants have followed their own accounting practices for budget preparation.

Post-Award Requirements

Reporting Obligations: Projects are expected to report on results to the European Partnership ‘Globally Competitive Space Systems’ (GCSS) to support the monitoring of its KPIs (Key Performance Indicators).
Monitoring and Evaluation: Checks, reviews, and audits will focus on the technical implementation of the action, particularly on the fulfillment of conditions for releasing lump sum contributions per work package, as well as ethics, research integrity, dissemination, exploitation of results, intellectual property management, and gender equality.

Application Support

Online Resources: Applicants can find guidance in the Online Manual, Horizon Europe Programme Guide, and Funding & Tenders Portal FAQ.
Direct Assistance: Support is available through the Research Enquiry Service, National Contact Points (NCPs), Enterprise Europe Network (EEN), IT Helpdesk, European IPR Helpdesk, CEN-CENELEC Research Helpdesk, and ETSI Research Helpdesk.
Partner Search: A partner search tool is available on the Funding & Tenders Portal to help find suitable collaborating organizations.

Evaluation Criteria

General Evaluation Criteria

Award Criteria, Scoring, and Thresholds: Proposals will be evaluated based on general award criteria, scoring, and thresholds as described in Annex D of the Horizon Europe Work Programme General Annexes. Eligible proposals exceeding all evaluation thresholds will be awarded a STEP Seal.

Specific Scoring Factors

Excellence: Assessed on the quality of the research and innovation, including: R&I on End-to-End SatCom Mission capabilities (e.g., network interconnectivity, integration into terrestrial networks, optical communication, Inter Satellite Links, reconfigurable payloads, compatibility with 5G/6G, testbed development); R&I on on-board processing for EO missions (e.g., standardized software frameworks for edge-computing, data/signal image processing, enhanced downlink/uplink, smart multi-source EO intelligence fusion, EO equipment digitalization); and R&I on synergetic technologies applicable across both EO and SatCom systems (e.g., system security, resource usage optimization, high-performance processing payload H/W, flexible downlink, open-HW alternatives).
Impact: Proposals will be scored on their expected contribution to:
- Enabling the European Space Industry to maintain a significant share of the global connectivity market.
- Increasing the performance of space satellite networks and integrating space/ground segments into terrestrial networks.
- New commercial services and applications enabled by increased digitalisation of space solutions.
- Advanced Earth observation payloads and processing means.
- Fostering the EU's space sector competitiveness.
- Developing critical technologies, safeguarding, and strengthening their EU value chain, and reducing strategic dependencies.
Quality and Efficiency of Implementation: Factors include:
- Cooperation: Expected promotion of cooperation between different actors (industry, SMEs, research institutions).
- Commercialization: Opportunities to quickly turn technological innovation into commercial use, e.g., through on-ground relevant environment or in-orbit demonstration.
- Portfolio Balance: To ensure a balanced portfolio covering the three R&I areas (End-to-End SatCom, on-board processing for EO, synergetic technologies), grants will be awarded not only by ranking but also at least one proposal that is the highest ranked within each main area, provided it attains all thresholds.
- Resource Alignment: Experts with financial know-how will check the budget estimate against benchmarks and assess if proposed resources align with activities and expected outputs.
Cross-cutting Themes: The integration of the gender dimension (sex and gender analysis) in research and innovation content should be addressed if relevant in relation to the objectives of the research effort.

Compliance & Special Requirements

Regulatory & Legal Compliance

Protection of European Communication Networks: Projects must comply with restrictions for the protection of European communication networks.
Satellite Data Usage: If satellite-based Earth Observation, positioning, navigation, and/or related timing data and services are used, beneficiaries are strictly required to use Copernicus and/or Galileo/EGNOS.
Lump Sum Regulation: Grants are subject to the Decision of 7 July 2021 authorizing the use of lump sum contributions under the Horizon Europe Programme.
Financial Regulations: Compliance with the EU Financial Regulation 2024/2509 is required.
Legal Entity Validation: Applicants must adhere to rules for Legal Entity Validation, LEAR Appointment, and Financial Capacity Assessment.