Energy Demo Projects

Provides loans, loan guarantees or equity-type financing typically between 7.5 million EUR and 75 million EUR to innovative demonstration projects in the fields of energy system transformation, including but not limited to renewable energy technologies, smart energy systems, energy storage, carbon capture and storage or carbon capture and use, helping them to bridge the gap from demonstration to commercialisation.

What is InnovFin Energy Demonstration Projects?

InnovFin Energy Demonstration Projects enables the EIB to finance innovative first of a kind demonstration projects at pre-commercial stage that contribute to the energy transition, particularly in the fields of renewable energy technologies, smart energy systems, energy storage, and carbon capture utilization and storage. 
The projects may relate to innovative energy system assets, manufacturing processes or services. Projects, by their design and scale, shall contribute to de-risk the technologies and reassure financial investors on their commercial viability. 

The goal is to help bridge the “valley of death” from demonstration to commercialization, supporting the further rollout of innovative low-carbon energy technologies to the market. It has been designed to address the financing bottleneck identified in the EU’s Strategic Energy Technology (SET) Plan.
 

Indicative Term Sheet

  • Instrument: loans/guarantees/quasi-equity
  • Loan size: 7.5m EUR – 75m EUR
  • Tenor: up to fifteen years
  • Covenants & security: transaction-specific
  • Jurisdiction: transaction-specific
  • Application & inquiries: directly to the EIB; see contact details below

EIB financing is limited to 50% of the total eligible costs of the project which include all the costs necessary for the successful demonstration of the technology, service, manufacturing or business process.

What are the benefits for you?

InnovFin Energy Demonstration Projects is specifically designed to target projects that are typically too risky to access other sources of funding at affordable terms.

The EIB:

  • Offers longer tenors and competitive pricing
  • Provides a quality stamp and positive signaling effect
  • Does not offer other banking services such as FX, swaps, etc.no competition with the company’s main banks)
  • Pursues a long-term lending strategy and does not sell its exposures to third parties

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Pre-screening and eligibility checklist

Eligible counterparties must comply with the following criteria:

  • Scope:
    • The project shall contribute to the energy transition, particularly in the fields of renewable energy technologies, smart energy systems, energy storage, and carbon capture utilization and storage.
    • It shall demonstrate the commercial viability of pre-commercial technologies or services, or enhance the completeness of manufacturing processes.
  • Innovativeness:
    • The technologies demonstrated in the project shall be innovative in relation to others in the market.
    • Innovation may relate to a specific technology, processes, products or services. The innovative aspect may consist of the innovative combination or innovative application of existing technologies.
  • Readiness for demonstration at scale:
    • Technologies shall be at pre-commercial level or early commercialization stages (i.e. the successful operation of the technologies should facilitate their subsequent commercial deployment).
    • The project/investment should be sufficiently mature for demonstration at the proposed commercial scale (technologies validated and demonstrated through previous testing) with reasonable prospects of successful demonstration.
  • Prospects of bankability:
    • The project shall generate sufficient revenues to have the potential to become bankable.
    • This requirement relates to all aspects of the project that are relevant for future project performance and debt service.
  • Commitment:
    • Promoters, sponsors and/or operators must be willing to substantially co-fund the project.
  • Replicability:
    • The project should have the potential to be replicated elsewhere with convincing market opportunities and prospects for future cost reductions. Manufacturing plants and services do not necessarily need to comply with this.

For additional questions: Sarit.Kimchi@iserd.org.il