New Call PRR Industry Decarbonization

This call will support measures to modernise and decarbonise mainly energy intensive industries (e.g. ceramic and glass, cement, steel, chemical, metallurgical, among others). In fact, the industrial sector is one of the main responsible for the high rates of greenhouse gas emissions, being strategically a priority its energy transition and decarbonisation towards carbon neutrality in 2050, while seeking to maintain competitiveness, innovation and response to the current conjuncture.

DEADLINE

Until 6PM of 31/01/2023. The submission could be suspended before this date. The application form will be available on 02/12/2022.

BENEFICIARIES (individual or in industrial symbiosis)

Portuguese companies legally constituted since 01/01/2021, of any size or legal form, mainly industries (CAE 05-33). The secondary CAE is considered, but the project must be based on that activity.

New units, mere productive expansion and activities that cause significant damage to any environmental objective are excluded from this call.

The beneficiaries shall not have submitted the same investments in an application under which the decision process is still ongoing.

TYPOLOGIES/ELIGIBLE EXPENSES

1. Low carbon processes and technologies
   • Substitution of equipment that uses natural gas and/or other fossil fuels for electrical equipment;
   • Adaptation or acquisition of equipment to incorporate alternative or renewable raw materials;
   • Investment in digital solutions to achieve compliance with the objectives.
2. Energy efficiency measures
   • Optimisation of motors, turbines, pumping systems and ventilation systems;
   • Optimisation of compressed air systems;
   • Replacement and/or modification of furnaces, boilers and injectors;
   • Heat or cold recovery;
   • Use of waste heat from nearby industries (in industrial symbiosis);
   • Optimisation of industrial cold production;
   • Substitution of lighting systems.
3. Production of energy from renewable sources and energy storage
   • Installation of electrical energy production systems from renewable energy sources for self-consumption (increase in capacity can only be included in modality A);
   • Installation of equipment for heat and/or cold production from renewable source;
   • Adaptation of equipment for the use of renewable fuels (e.g., hydrogen);
   • Installation of high efficiency cogeneration systems based exclusively on renewable energy sources;
   • Energy storage systems of renewable origin.

Energy efficiency projects must achieve a reduction of at least 30% of direct and indirect greenhouse gases emissions in the supported industrial facilities.

AMOUNTS OF SUPPORT

Each company could present one application to each modality (A and/or B), and each application shall cover distinct establishments.

Modality A - simplified projects for industry decarbonization

Base incentive rate: 55%, plus:

• +10 pp for medium-sized or +20 pp for small enterprises;
• +10 pp for establishments located in the North, Centre, Alentejo, Azores and Madeira regions

The maximum amount of support is EUR 200,000.

Modality B - projects for industry decarbonization

Incentives under articles 36, 38, 41 of the GBER on eligible expenses.

The maximum support is EUR 15 M.

Eligible expenditure is total if the investment is separate (e.g. addition of components to increase energetic efficiency). Otherwise, only the difference between the investment and less efficient solutions will be considered eligible. 

The exception is in small installations (GBER art. 41), where the eligible expense is total when:

• Installed capacity is < to 500 kW (e.g. photovoltaic)
• Wind energy < 3 MW or less than 3 production units
• Small installations with a common connection point to the electricity grid are considered 1 single installation

The eligible cost of each investment presented in the application must be supported by an adequate counterfactual analysis (e.g. budget for the new and conventional solution), otherwise its total or partial eligibility may be questioned during the analysis, implementation or an audit.

DECISION

Modality A: the decision is known 10 days after submission of the application

Modality B: the decision is known 60 days after the deadline for submission of applications

BUDGET

EUR 250 M, distributed as follows:

• Modality A:  EUR 150 M
• Modality B: EUR 100 M

PROJECT DURATION

24 months (deadline for submission of expenditure: 31/12/2025)