Neoval brings together Siemens Transportation Systems and LOHR Industrie, a French company specialised in designing and developing freight and passenger transport systems, to develop a new generation of metro train featuring novel power optimisation and on-board power supply and other technologies that will be translated over from road vehicles. The aid amounts to €26.5 million.
EU Competition Commissioner Neelie Kroes said the programme aimed to create more environmentally friendly transport, adding, “the positive effects are greater than any negative impact on competition”.
The two companies will be working with public laboratories, including INRETS, the National Institute for Research into Transport and Transport Safety and L2EP, the Electrotechnics and Power Electronics Laboratory, based in Lille.
The total cost of the programme is €60.65 million over six years. The aid from the French Industrial Innovation Agency comprises €11.2 million in subsidies and €15.3 million in refundable advances.
The Commission also carried out an assessment of the aid to Siemens Transportation Systems, which exceeds the €7.5 million threshold set by the Framework. The EC concluded the aim of the aid measure was to correct market weaknesses, and was therefore appropriate.
Receive the Funding Newswire each Tuesday, our Policy Bulletin each Thursday, and news about bridging Europe’s east-west innovation gap twice a month in The Widening. 
A unique international forum for public research organisations and companies to connect their external engagement with strategic interests around their R&D system.