R&I in Support of the Clean Industrial Deal: Clean Technologies for Climate Action

As per the topics’ scope, proposals are expected to demonstrate an adequate integration of relevant technologies in support of the Clean Industrial Deal (either via direct or indirect integration). Hence, it is envisaged that proposals (under each of the topics under this call) have the possibility simultaneously encompass/address several technologies and/or solutions described under each of the 3 areas listed.

However, applicants (under each topic) are expected to decide and select one main area out of the 3 that are listed – based on a sound assessment/reasoning on which of the areas the aims, activities, and technological solutions covered by their proposal is most aligned with. The main area selected should explicitly be stated in the proposal.

As per the text of the topic “HORIZON-CID-2026-01-02: R&I in Support of the Clean Industrial Deal: Clean Technologies for Climate Action”: the projects under the topic are expected to show industrial leadership in view of the deployment after the project. To ensure market readiness and effective collaboration amongst relevant stakeholders along a specific clean tech value chain, the consortium should be industry driven. To meet this condition, the consortia under this topic should have a clear strategy specifying the roles and responsibilities of all the member (both, during the project’s implementation, as well as with a view to deployment after the project).

In line with the model grant agreement, affiliated entities are considered participants. As per the topic’s text and as per the FAQs #1 and #10 of the topic (on the Funding & Tenders Portal), consortia must put together a consortium composition that aims at a clear and quantifiable positive impact on competitiveness and allows for effective collaboration between the relevant stakeholders within the selected clean tech sector. In the topic text, indicatively a maximum number of ten participants is given. What is important is that the consortium size is justified based on the extent of the value chain covered. We are not able to express anything more on this question that is specific for the possible consortium of this potential application without risking pre-empting the opinions and evaluation of the expert evaluators.

Firstly, we highlight that entities from all Associated Countries may apply to this particular call and topic as for any other topic under Pillar II of the Horizon Europe Work Programme 2026-2027 (provided that no specific restrictions are put in place).

The topic explicitly states as an Expected Outcome that proposals “contribute to Europe’s industrial leadership and competitiveness, in line with the objectives of Net-Zero Industry Act (NZIA) for the EU manufacturing capacity of net-zero technologies.” Hence, proposals to this topic, also including entities from Associated Countries, are expected to contribute to Europe’s industrial competitiveness.

The assessment of the competitiveness contribution is not based on the legal applicability of the Net-Zero Industry Act (NZIA) in the applicant’s country, but on the extent to which the proposed project strengthens EU industrial competitiveness and leadership.

Further, this Expected Outcome includes the footnote that “this should apply to each main specific component of the project for which, under the NZIA, it is established that more than 50% of Union’s supply originates from a third country. In such cases, at least 50% of these components should be sourced from the EU or other Horizon Europe Associated Countries. In cases where a strong dependency would compromise the viability of the project, beneficiaries may aim at a lower percentage providing an adequate justification in the proposal”.

• For the eligibility of costs please refer to Article 6 of the Grant Agreement (see AGAPDF). Beyond the question of eligibility, the expenditure planned will be assessed by the independent expert evaluators during the evaluation process as part of the “Quality and effectiveness of the work plan, assessment of risks, and appropriateness of the effort assigned to work packages, and the resources overall.” (Horizon Europe - Work programme 2026-2027 General Annexes – Annex D).
• In practice, the purpose of the go/no-go milestone is to avoid sunk costs in a situation where demonstration activities are strongly delayed or cancelled. Therefore, if consortia consider that costs for a demonstrator must be committed before this milestone, they should convincingly justify this in the proposal and also appropriately manage the associated risks.

The calculation of the LCOE is meant to cover the costs associated to all relevant steps of the value chain covered by the project resulting in the delivery of the energy to the final end-user (e.g. industry, transport, manufacturing etc.) – hence, this should cover, where relevant, production, distribution, and storage costs.

It will be up to the applicant to provide a sound and realistic baseline in the proposal, based on the specifical technological area(s) addressed by the applicant.

Consortia must put together a consortium composition that aims at a clear and quantifiable positive impact on competitiveness and allows for effective collaboration between the relevant stakeholders within the selected clean tech sector. Industrial engagement and leadership are needed for the deployment of the technologies in the market.

The instructions related to the Business Plan and the Market-Readiness Strategy are detailed in the introduction to the Destination “Horizontal Call – R&I in Support of the Clean Industrial Deal.” These two elements are expected for all proposals under this call. The two elements are to be part of the proposals’ dissemination and exploitations activities (and hence the corresponding work package) and should be further developed during the implementation period through a yearly deliverable and a final report.

In order to include a business case and market-readiness strategy, as outlined in the introduction to the Destination, the page limit in part B of the General Annexes is exceptionally extended to a maximum of 60 pages.

It is expected that applicants ensure that the needed expertise can be mobilised within the consortium (notably via industrial members, who typically should have sufficient business/market-based knowledge for these elements and are expected to take a leading role in the projects consortia).

As described in the introduction to the Destination “Horizontal Call – R&I in Support of the Clean Industrial Deal”, the business plan and market-readiness strategy will be part of the dissemination and exploitation activities of projects under this call and will be further developed and updated during the implementation period through a yearly deliverable and a final report in order to ensure fit for deployment at the end of the project. Hence, the two elements are not expected to be fully comprehensive and completed at the stage of the application – what will be assessed in the application is the degree to which the framing/outline of the plan to develop and complete the elements (as part of the projects’ activities) is sound and convincing.

The “circular material use rate” is synonymous to the definition of “recycling capacity” as per the Critical Raw Materials Act1: the maximum annual production volume of recycling operations for strategic raw materials after re-processing, including the sorting and pre-treatment of waste, and its processing into secondary raw materials.

It will be up to the applicant to provide a sound and realistic baseline for the circular material use rate in the proposal, based on the specifical technological area(s) addressed by the applicant.

[1] Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020Text with EEA relevance.

Proposals are expected to demonstrate the sound and reasonable linking/incorporation of technological solutions/technologies into a coherent system, operation, and/or system (rather than in isolated elements) in a direct or indirect manner (e.g. to either reduce greenhouse gas emissions or produce novel clean products). Such integration would likely follow energy and industrial technological value chains (i.e. from generation via distribution to use).

The proposal should include the go/no-go moment as a project milestone. This milestone should state the appropriate means of verification, which should be added as deliverables. They should include as a minimum the detailed engineering plans, a techno-economic assessment, all needed permits for the demonstrator and the complete business plan and market-readiness strategy. If the go/no go decision is delayed or negative, suspension or termination of the action will be considered.

There is no prescription of how much of a selected value chain is covered by a proposal – and by no means are there expectations that an entire value chain is addressed. What matters is that proposals ensure when needed that an adequate combination of suppliers, users and other relevant stakeholders in order to be able to demonstrate a sound business case in the form of a cross-sectorial approach (integrating relevant technological solutions – in a direct or indirect manner).

The topics are not restricted to renewable energy solutions. Where the descriptions mention “renewable energy storage solutions” or “renewable electricity,” these are examples of broader categories: “clean energy usage in production” and “zero-emission power technologies,” respectively. All clean, low-carbon, or net-zero energy technologies are eligible, as are integrated net-zero emissions energy systems that incorporate them.

The go/no-go moment would be applicable to all demonstration activities supported and funded under the topic – including any “main” pilot, as well as any “replicators”.

In the context of this call and topic, “demonstration” activities are considered to be R&I activities that are covered by Innovation Actions (TRL 6-8; as per the Horizon Europe Regulation, 'innovation action' means an action primarily consisting of activities directly aiming to produce plans and arrangements or designs for new, altered or improved products, processes or services, possibly including prototyping, testing, demonstrating, piloting, large-scale product validation and market replication). In contrast, “deployment” in the context of the call refers to application in the market that reaches beyond such first applications.

Given that this topic will fund Innovation Actions, activities can go beyond demonstration up to market replication (i.e. support the first application in the market of an innovation that has already been demonstrated but not yet applied due to market failures/barriers to uptake). Innovation Actions do not cover deployment in the market of multiple applications of an innovation (a new or improved technology, product, design, process, service or solution) that has already been applied successfully once in the market.

Indeed, as per the topic’s text, carbon capture and utilisation (CCU) R&I activities are covered under this topic – this means that carbon capture and CO2 utilisation/conversion activities are in scope, whilst CO2 storage activities are not. This does not mean that CCS may not feature at all in the scope of activities under proposals of this topic – but CCS may not be considered as the core focus/activity of the project.

On the other hand, CC[U]S activities, in terms of optimization and demonstration of solutions for the capture, [utilization or] storage of CO2 and/or CO from installations of the energy intensive industries is in the scope of the parallel topic under the Clean Industrial Deal call (topic HORIZON-CID-2026-01-01: R&I in Support of the Clean Industrial Deal: Decarbonisation of energy intensive industries (IA) (Processes4Planet and Clean Steel partnerships)).

It means that whilst there is a frame for the technological areas that are in scope, applicants are free to decide on the specific technological value chain they wish to strengthen within an industrial sector. The choice of the specific technologies addressed in the proposal is left to the project applicants who should include a thorough justification of the choices both in technological and business terms. This freedom for industry to decide the technological and business areas addressed allows for integration of clean technologies with Industrial decarbonisation.

The answer to this question cannot be given a priori without assessing the specific added value that such an approach would give to the proposal. Demonstration activities are a clear requirement of the topic and each proposal will be evaluated on the basis of their degree they meet the topic requirements. The extent to which introducing a replicator demonstrator will contribute to these requirements including the cost implications in the most effective way will be assessed.

In principle, the CID call (and specifically the “Clean Tech for Climate” topic) does not prevent a proposed project to consist of separate “components” (e.g. a main demonstrator and an additional replicator) – however, we highlight that such an approach may render it more challenging to successfully and convincingly address the key topic’s key objectives, in particular given the indicative budget per proposal (EUR 15-25 million), which could make it challenging to fund multiple pilots/demonstrators.