The German government has set binding greenhouse gas emission reductions for the transport sector in the Climate Protection Act. In all probability, electricity-based fuels (eFuels) will be indispensable in selected segments in the future in order to make the transport sector climate-neutral in its entirety. This is because not every transport application can be electrified or otherwise efficiently made climate-neutral.

A necessary prerequisite for achieving climate protection targets is the introduction of renewable fuels, especially in air and sea transport, but also in long-distance road haulage. Depending on the area of application, advanced biofuels or electricity-based fuels based on RE electricity can be used to reduce greenhouse gases in the relevant transport subsectors. With a few exceptions and only in comparatively small quantities, these renewable fuels have not yet been established on the market.

Funding concept

The funding concept comprises several measures to provide technology-neutral support for renewable fuels. The BMVI has a total of around 1.54 billion euros in funding available for these measures from the Energy and Climate Fund (EKF) and from the National Hydrogen Strategy over the period 2021 to 2024.

1. funding for development projects: the BMVI is investing 640 million euros here in application-oriented development and demonstration projects and for innovation clusters on renewable fuels.
2. funding for production and market ramp-up facilities: The BMVI is investing a further 900 million euros in renewable fuels.

Funding Guideline

For both advanced biofuels and electricity-based fuels, development work is still needed on a larger scale with regard to the overall chain, but also for individual process steps, so that they can make a high contribution to greenhouse gas reduction in the medium term. Specifically, there is still a considerable need to develop innovative manufacturing processes in order to achieve the necessary technological maturity for market entry and market ramp-up. For processes with a higher level of technological maturity, optimization and efficiency potentials still need to be leveraged with the aim of reducing costs. Questions of sustainable raw material procurement also need to be investigated. The focus of this funding guideline is on application-oriented projects. In addition to universities, colleges and non-university research institutions, the funding is also intended to support commercial enterprises and municipal companies, e.g. from the fields of plant engineering, component production (electrolysis, synthesis processes) and fuel production and use, in the (further) development of necessary technology solutions.

In its Climate Protection Plan 2050, the German government has set a target for the transport sector of reducing greenhouse gas emissions by 42% in the period 1990-2030. Renewable fuels can make a significant contribution to this. This directive is therefore intended to support the further development of electricity-based fuels and advanced biofuels. In addition to reducing greenhouse gas emissions, the incentives provided by the funding are also intended to address the following objectives:

  • Accelerate technology and innovation transfer to advance innovative manufacturing processes of advanced biofuels and electricity-based fuels,
  • Achieve the necessary technological maturity for market entry and ramp-up,
  • Promoting innovation,
  • Expanding the current technology leadership and at the same time strengthening Germany as a business location, as well as
  • Accelerating decarbonization in the transport sector.

The BMVI has not yet commissioned a project executing agency to implement the funding measure.
For this reason, no funding applications can be submitted at this time.

As soon as the project executing agency has been determined, the call for funding applications will be announced.
This call will include the contact details of the commissioned project executing agency as well as further details on how to submit an application.
Applications can be submitted as soon as the contact details of the assigned project sponsor have been published.

Until the project sponsor has been determined, NOW GmbH will provide general information on the funding guidelines.

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The German government has set binding greenhouse gas emission reductions for the transport sector in the Climate Protection Act. In all probability, electricity-based fuels (eFuels) will be indispensable in selected segments in the future in order to make the transport sector climate-neutral in its entirety. This is because not every transport application can be electrified or otherwise efficiently made climate-neutral.

A necessary prerequisite for achieving climate protection targets is the introduction of renewable fuels, especially in air and sea transport, but also in long-distance road haulage. Depending on the area of application, advanced biofuels or electricity-based fuels based on RE electricity can be used to reduce greenhouse gases in the relevant transport subsectors. With a few exceptions and only in comparatively small quantities, these renewable fuels have not yet been established on the market.