EU: second IPCEI for project "European Battery Innovation"

The Commission has approved, under EU State aid rules, a second Important Project of Common European Interest (“IPCEI”) to support research and innovation in the battery value chain. The project, called “European Battery Innovation” was jointly prepared and notified by Austria, Belgium, Croatia, Finland, France, Germany, Greece, Italy, Poland, Slovakia, Spain and Sweden.

The twelve Member States will provide up to €2.9 billion in funding in the coming years. The public funding is expected to unlock an additional €9 billion in private investments, i.e. more than three times the public support. The project complements the first IPCEI in the battery value chain that the Commission approved in December 2019.

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The project will cover the entire battery value chain from extraction of raw materials, design and manufacturing of battery cells and packs, and finally the recycling and disposal in a circular economy, with a strong focus on sustainability. It is expected to contribute to the development of a whole set of new technological breakthroughs, including different cell chemistries and novel production processes, and other innovations in the battery value chain, in addition to what will be achieved thanks to the first battery IPCEI.

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Source: https://ec.europa.eu/commission/presscorner/detail/en/IP_21_226

EU: discord over hydrogen strategy

Concerning the EU's important project of common European interses (IPCEI) in hydrogen, five member-states (Austria, Denmark, Luxembourg, Portugal and Spain) want to make clear that they will only support this project if it the hydron is produced by renewable energies, not by natural gas or nuclear, writes Euractiv:

EU member states have squabbled over the past weeks about which type of hydrogen to support, with two opposing camps facing off: those backing green hydrogen produced exclusively from renewable electricity, and those in favour of a broader “low-carbon” definition, which also includes nuclear power and decarbonised gases.

Supporters of “blue” hydrogen say natural gas will be needed in the short term to ramp up production volumes and grow the EU’s hydrogen market, which is currently tiny.

Margrethe Vestager, the EU’s competition chief, sought to clarify the Commission’s approach, saying regulatory support will be targeted only for projects that can make a significant contribution to the EU’s long-term climate goals.

“Developing technologies for low-carbon and, in particular, green hydrogen, and building the necessary infrastructure for its deployment, will take us one step closer to making Europe the first climate-neutral continent by 2050,” she said in a speech at the launch event.

IPCEIs were set up in 2014 and allow EU member states to subsidise high-risk cross-border research and innovation, as well as infrastructure projects, without having to observe the EU’s normally strict state aid rules.

“No member state or business can do this alone,” Vestager stressed. “That’s why it makes sense for European governments to come together to support such important projects of common European interest, if the market alone would not take the risk. And it is why we have put special state aid rules in place to smooth the way.”

But the five EU countries are worried that the new hydrogen IPCEI will be used to support “low-carbon” hydrogen made from natural gas or nuclear power.

They say they signed up to the manifesto – but only “with the understanding that this initiative should exclusively refer to hydrogen from renewable energy sources since we consider this technology as the only long-term sustainable solution to achieve climate neutrality by 2050.”

“Projects within an IPCEI must respect the principle of the phasing out of environmental harmful subsidies,” the signatories of the letter wrote. “Therefore, an IPCEI on hydrogen must only be eligible when produced from renewable sources, where a clear market gap is identified,” the letter said.