Clean energy projects line up for funding in €8B demonstrator scheme

A total of 78 projects large-scale demonstrators of renewable energy and carbon capture and storage (CCS) technologies have been submitted by member states to the European Investment Bank (EIB) for funding under the EU's NER 300 programme, which is planned to be the world’s largest demonstration programme for these technologies.

Applications for 13 CCS projects and 65 projects of renewable energy technologies have been submitted for the NER 300 demonstration programme, which is named after the New Entrants Reserve of the EU Emissions Trading System.

The NER 300 programme aims to fund at least eight of the CCS and 34 of the energy demonstrators through the sale of 300 million emission allowances held in the New Entrants Reserve. At the current price of carbon, these allowances are worth €4-5 billion, but as project sponsors are also expected to contribute, it is expected total funding will be twice this amount.

The EIB now has responsibility to carry out financial and technical due diligence, with the appraisal of proposed projects due to be completed by 9 February 2012.

Following this, the European Commission will consult the EU Climate Change Committee, to check that member states still support the projects they recommended, and prepare and issue award decisions.

The EIB will sell the emissions allowances, manage the revenues and hand them over to member states for disbursement to the projects. At least one project, and up to a maximum of three, will be funded per Member State. The Commission will announce which projects are to receive funding in the second half of 2012.

Number and type of project proposals submitted to the EIB: