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BayBioökonomie-Scale-Up; application for funding for investments in scale-up plants

Funding is provided to companies that invest in production facilities in Bavaria with a positive climate effect that use renewable raw materials or biogenic residual and waste materials to support the transition to a carbon-based circular economy.

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Bayerisches Staatsministerium für Wirtschaft, Landesentwicklung und Energie

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Regierung von Niederbayern

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Procedure details

Purpose

In order to achieve the sustainability goals of the UN 2030 Agenda, a sustainable bio-based economy must be established. To achieve this, industrial production processes must be converted to the use of renewable raw materials or biogenic residual and waste materials. The promotion of scale-up plants for the material use of renewable raw materials is intended to increase companies' willingness to invest. The investments should generate new value chains and jobs and strengthen value creation in rural areas. In order to facilitate market access for bio-based plastics, funding is also provided for plants for the chemical or biochemical recycling of plastic waste.

Object

Funding is available for expenditure by companies for the construction of industrial bioeconomy production plants that process certified renewable raw materials or biogenic residual and waste materials and have a high climate protection effect. The plants should already have been tested on a larger scale (from technology readiness level TRL 8).

Recipients of funding

Commercial enterprises that have their registered office, a branch or a permanent establishment in the Free State of Bavaria at the time of approval and where the funded measure is also used are eligible to apply.

Bio-based products and processes open up great market opportunities for Bavarian companies and at the same time reduce the consumption of fossil raw materials. The aim is to create regional value chains that utilize biogenic raw materials such as wood, straw, fibres or oilseeds as well as biogenic residual and waste materials. The funding program aims to strengthen the demand for domestic renewable raw materials, generate new value chains and create new jobs and income prospects, particularly in rural areas. In order to facilitate market access for bio-based plastics, funding is also provided for plants for the chemical or biochemical recycling of plastic waste. The "BayBioökonomie-Scale-Up" funding program is part of the comprehensive package of measures of the bioeconomy strategy Zukunft.Bioökonomie.Bayern.

Eligible costs

Investment costs (plant and machinery, operating and office equipment) for setting up the production facility are eligible for funding in accordance with No. 2.1 of the BayBioökonomie-Scale-Up guideline. In the case of funding under No. 2.2 and 2.3, the project-related additional investment costs compared to a reference technology (conventional production plant that processes fossil raw materials) are eligible for funding. Costs for the conversion of conventional production plants that use fossil raw materials to the use of renewable raw materials or biogenic residual and waste materials are considered additional investment costs.

Type and amount

The grant is provided as partial financing within the framework of project funding as a subsidy.

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

Funding rate for funding under Art. 36 of the General Block Exemption Regulation (GBER) for funding under No. 2.2 or 2.3: up to 40% of eligible expenditure (additional investment costs); the funding rate increases by up to 10% for medium-sized companies and by up to 20% for small companies.

  • The production plant must be built in Bavaria.
  • The source materials used in the funded plant must be renewable raw materials or predominantly biogenic residual and waste materials (at least 51%; this threshold does not apply to waste containing plastics in the case of funding under 2.3), but technically necessary auxiliary materials of non-biogenic origin are permitted.
  • The operation of the funded innovative technology must represent a demonstrable environmental benefit compared to the operation of conventional technology (for funding under No. 2.2, the requirements under Art. 36 GBER apply in particular; for funding under No. 2.3, the requirements under Art. 47 GBER apply in particular). The plant must go beyond the existing state of the art.
  • The sustainability of the raw materials must be verified by suitable certification (e.g. ISCC PLUS or REDcert2 for agricultural products and PEFC/FSC or an equivalent certificate for wood) throughout the entire service life of the installation, with the exception of residual materials and waste products. In addition, the extent to which a positive climate protection effect can be achieved (e.g. through greenhouse gas certification in accordance with ISO 14064) must be demonstrated from a holistic perspective, i.e. also taking into account the raw materials/pre-products (including their production and transportation). The plant must enable a predicted quantitative reduction in greenhouse gas emissions compared to the state of the art (the GHG reduction potential should be at least 40%; further details will be announced in the respective call for funding).
  • A proof of concept must already have been provided for the production process on a demonstration scale; only projects from TRL 8 are eligible for funding.
  • 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. The start of the project is generally deemed to be the submission of a binding declaration of intent to conclude a supply or service contract attributable to the execution of the project. Planning, certification and approval procedures do not count as the start of the project.

  • The following documents are required:
    • Technical project outline with information on the applicant including qualifications (see No. 4.2. p. 2 of the guidelines), sustainability, degree of innovation and contribution to climate protection (see No. 4.1, 4.4 and 7.1.2 of the guidelines) and detailed explanation of the economic risk of the planned project
    • Annual financial statements of the applicant company for the last three years.
    • For funding under No. 2.2 of the Directive: information on the additional investment costs compared to the counterfactual scenario (investment in reference technology(ies) based on fossil raw materials with comparable production capacity and service life, which complies with applicable law and is credible in terms of legal requirements, market conditions and the incentives created by the EU ETS system).
    • For support under No. 2.3 of the Directive: information on the additional investment costs compared to the counterfactual scenario (investment in less environmentally friendly process with comparable production capacity and lifespan that complies with the applicable law and is credible in terms of the legal requirements, market conditions and incentives created by the EU ETS).

Outlines can only be submitted during an open call for funding. The application procedure has two stages (see No. 7.1 of the guidelines):

  • Stage 1 - Outline phase: Project outlines must be submitted by e-mail to the government of Lower Bavaria (e-mail: Scale-Up-Programm@reg-nb.bayern.de) by the deadline specified on the homepage https://www.stmwi.bayern.de/foerderungen/biooekonomie-scale-up/ and will then be evaluated.
  • Stage 2 - Application phase: The selected project outlines will be invited to submit formal funding applications. Funding applications can be submitted by June 1 and December 1 of each year.

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Pre-proposals can be submitted up to the deadline specified on the homepage https://www.stmwi.bayern.de/foerderungen/biooekonomie-scale-up. They must be thematically relevant to the respective call for funding.

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 to 4.4, 4.6, 4.7 and 7.1.2 of the guidelines

Status: 11.02.2025
Editorial responsibility Bayerisches Staatsministerium für Wirtschaft, Landesentwicklung und Energie
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