The Industrial Decarbonisation Grant Programme earmarks €10 million for investments in facilities to reduce greenhouse gas

The Basque Government has approved the programme to support industrial companies and related services linked to the industrial product-process, to foster investments in new and/or existing production facilities, in order to reduce greenhouse gas (GHG) emission. €10 million have been earmarked for that purpose.

Application deadlines

• Start date: 20/09/2023

• Submission deadline: At 12.00 noon on 20/10/2023

The target audience

• Industrial companies and related services linked to the industrial product-process of the Basque Country; the focus is to be on decarbonisation to improve the level of environmental protection of its industrial production processes and, thus, to reduce greenhouse gas emissions.

FAQs

Is this programme compatible with other grants from other entities?

Yes, it is. Provided that the total amount of the grants does not exceed the limit established in Article 36 of Regulation (EU) No. 651/2014, of 17 June 2014; the Industry and Energy Transition Directorate must be informed of such subsidies.

Can several applications be submitted to the call?

No, they cannot.  There must be only one single completed application form for the set of actions that the company intends to implement.

What is the subsidy percentage of the accepted budget in this programme?

The subsidy percentage depends on the size of the grant applicant company:

• Small- and Medium-Sized Enterprise: 30%.

• Medium-Sized Enterprise: 25%.

• Large Company: 20%

The grant intensity will be increased by 2.5% in the case of investments located on the Extended Left Bank Area of the Basque Autonomous Community.

How do I know the size of my company?

Just download the “User’s Guide to the SME Definition ” which explains what has to be taken into account and how to calculate the size of the company.

Is the maximum subsidy in this programme per project?

No, the maximum amount is per company and/or group of companies, with the limit being €1,500,000.

What is the type of subsidy?

The grants will be awarded on a competitive basis and are non-repayable.

Is there a minimum investment amount for each application.

Yes, companies will have to make a minimum eligible investment of €100,000.

Can the project submitted for this programme be financed by means of financial leasing?

The project can be financed by means of financial leasing provided that it explicitly includes the purchase option at the end of its contract, along with the commitment to exercise the option signed by the two parties, in order for the investment to be eligible for support.

What must the project grant application contain?

The application must contain a detailed report on the investments and a calculation sheet to be completed by the applicant.

What must the technical report on the project submitted for the programme contain?

It is a document that must contain the following information:

• Description of the investment and its implementation milestones.

• Explanation of the product and of the production process, before and after the investment.

• Justification of the consumption values used to calculate the emission reduction.

• Details of the financial economic plan.

What must the calculation sheet for the project submitted for the programme contain?

The calculation sheet to be completed by the applicant allows companies to calculate the emissions avoided, and must contain the following information:

• The cost efficiency of the eligible investment directly related to the reduction of greenhouse gas (GHG) emissions, with that efficiency be taken to be the result of dividing the value of the eligible investment between the reduction of CO2 equivalent tonnes obtained by the investment, and calculated during a maximum period of 10 years.

• The energy fuels and sources used in the process to be invested in, and its respective consumption in the situation before and after the investment.

• The value of the eligible investment for which the subsidy is requested.

What is the timeline to implement the project submitted to this programme?

• From the subsidy application date to the 31/12/2024.

When will the payment of the subsidy of the Industrial Decarbonisation programme be made?

The amount will be paid in several instalments as follows:

• An initial payment, in advance, of 5% of the amount of the awarded subsidy, will be made after acceptance of the grant.

• As regards the other payments, the beneficiary company must complete the following sections in “My Folder” in the electronic office:

• • Declaration of the eligible investments made.

• • Table of invoices with a classified list of the investment expenditure and amounts (excluding VAT).

• • Declaration that, after the awarding of the grant, the beneficiary has not outstanding recovery order in accordance with a decision of the European Union Commission that has declared aid to be illegal or incompatible with the interior market.

• • Declaration of the amount, provenance and application of the own resources of the company, that account for, at least, 25% of the amount of the investment considered to be eligible.

What is the deadline for submitting this programme’s settlement claim?

2 months from the end of the period established to make the investments.

What requirements do the beneficiaries of this programme have to meet?

The beneficiaries may be Large Companies and Small & Medium-sized Enterprises (SMEs) that meet the requirements of being companies in the production, transformation or extractive industries or related service companies linked to the industrial product-process, whose eligible investments are in the Basque Autonomous Community.

Is there is any type of company that is excluded from this call?

Yes, the following entities are excluded from this call:

• Entities that belong to the Public Sector of the Basque Autonomous Community, pursuant to Article 7 of Legislative Decree 1/1997, of 11 November, which enacted the Consolidated Text of the Governing Principles of the General Treasury of the Basque Country Act.

• Energy generation and distribution companies.

• Energy services companies.

Can two projects be included in a single application for the Industrial Decarbonisation programme?

Yes, in fact, the investments envisaged overall by the company need to be submitted in a single application.

When do I have to submit the application for it to be accepted?

Prior to starting the project covered by the application. Furthermore, the work must be carried out from that date, and must always be started in 2023 and run, no later, than up to 31 December 2024.

If the project has been started before the publication in the Official Gazette of the Basque Country, can the application be submitted to be processed?

No, as the investment must be started after the application.

What are the eligible subsidies of the call?

An eligible investment is considered to be the acquisition of fixed assets to be included in the assets of the company and to be used directly to reduce or eliminate greenhouse gases by means of the decarbonisation of the production processes and which fall into any of the following categories:

• 212 Technical facilities.

• 213 Machinery.

• 215 Other facilities.

• 217 Equipment for information processes.

As regards investments in equipment, machinery and facilities of industrial processes that use fossil fuels (including natural gas), subsidies will only be awarded to the installation of additional components that improve the environmental protection level of the existing production equipment, machinery or facilities, provided that the new investment does not lead to an increase in the production capacity or greater consumption of fossil fuel.

Net-Zero Basque Industrial Super Cluster

On the other hand, the Basque Government through the Spri Group, in conjunction with the two leading energy companies of the Basque Country, Iberdrola and Petronor, and the support of the 16 industrial clusters, are boosting and accelerating the transition towards net zero emissions in Basque industry, by driving the decarbonisation of energy consumption and energy efficiency in industry, while at the same time fostering the creation of market opportunities based on technological development and innovation.

With nearly 80% of the world’s economy now committed to achieving net zero emissions, there is a pressing need for action to achieve that ambitious target.  Thus, the Net-Zero “Basque Industrial Super Cluster” seeks to accelerate the processes and achieve that emissions reduction target and is going to do so by first focusing on the decarbonisation of the energy supply and the energy efficiency of the Basque industrial sector.

The initiative will have a positive impact on the creation of skilled jobs in new technologies for the deployment of innovative solutions and will play a key role in making Basque industry more competitive.

Moreover, it is going to be a driving force in order to offer new opportunities for Basque companies, arising from the development of new innovative technologies and services.