Funding programme "Industrial Bioeconomy" of the BMWE
Introduction
In recent years, numerous bioeconomic products and processes have been developed on a laboratory scale. The aim now is to implement the underlying innovative processes on an industrial scale. The Federal Ministry for Economic Affairs and Climate Protection (BMWK) is therefore supporting the transfer of bio-based products and processes into industrial practice with its “Industrial Bioeconomy” funding programme.
Some regions in Germany are already well positioned in the field of industrial bioeconomy. In order to visualise this, the BMWK has developed maps in cooperation with the “Industrial Bioeconomy” dialogue platform, on which both example regions and best practice examples are depicted.
What is funded?
Projects are funded in four modules that focus on the further development, upscaling and testing of bio-based products and processes (A), the planning (B) and construction (C) of demonstration plants and the establishment of innovation clusters (D).
In general, projects must fulfil at least one of the following criteria without compromising the other criteria:
- Fossil-based products or processes are replaced or entirely new bio-based solutions are created.
- Resource efficiency is increased.
- Greenhouse gas emissions are reduced compared to the state of the art.
Module A - Development of products and processes
This module promotes the development and scaling of bio-based products and processes in order to demonstrate their transfer to industrial applications. Funding is provided for upscaling by at least one technology readiness level in the TRL 4 to 8 range. The funding covers experimental development and feasibility studies. The prerequisite is that the underlying processes have already reached TRL 4.
Module B - Plant planning
Funding is provided for the planning of company-owned demonstration plants in Germany. This includes feasibility studies on technical and structural planning as well as market preparation. Accompanying experimental developments to expand the database are also supported. In exceptional cases, the planning of multi-purpose demonstration plants is also possible. The prerequisite is that the underlying processes have already reached TRL 6.
Module C - Plant construction (submission for the first time by 15 October 2025)
This module will fund investments in demonstration plants for the industrial bioeconomy in Germany from October 2025. Investments in the construction, modernisation or expansion of the plants, in the technical infrastructure (machine and process technology) and the costs of buildings for the technical infrastructure are eligible for funding. Investments in multi-purpose demonstration plants are also possible here in exceptional cases.
Module D - Innovation clusters in the industrial bioeconomy
This module is aimed at management organisations in the form of individual projects to establish regional innovation clusters. The aim is to integrate new bio-based products and processes into industrial value creation networks in order to drive forward the transformation of existing industrial regions.
Who is eligible for funding?
In principle, the following are eligible to apply:
- SMEs including start-ups.
- Other commercial enterprises.
- Universities, universities, research and scientific institutions.
In building blocks A and D as well as in the planning and construction of company-owned demonstration plants (building blocks B and C), universities and research institutions are only eligible to apply as part of a consortium with industry participation.
How is funding provided?
Funding is provided as a non-repayable grant in the form of pro rata financing. The term is usually up to three years.
| TRL | Individual projects possible | Collaborative projects possible | |
|---|---|---|---|
| Module A | from TRL 4 | Yes | Yes |
| Module B | from TRL 6 | Yes | Yes |
| Module C | from TRL 6 | Yes | Yes |
| Module D | from TRL 4 | Yes | No |
Special features:
- For collaborative projects, the funding must be granted predominantly to the participating companies.
- For Module C, reliable planning documents and a life cycle assessment (LCA) must be available at the time of application.
- Foreign partners must finance their own expenses.
Funding rate / aid intensity
The funding rate for project costs varies depending on the applicant and funding module:
- Universities/research institutions: Up to 90% (in exceptional cases up to 100%).
- Commercial enterprises:
| Module | Aid (AGVO Art.) | Max. Subsidy rate | Additional bonuses | SME bonus |
|---|---|---|---|---|
| A, B | Experimental development (25) | 25 % | 15 % for effective cooperation | 10 % (medium) / 20 % (small) |
| A, B | Feasibility study (25) | 50 % | - | 10 % (medium) / 20 % (small) |
| A, B | Innovation aid for SMEs (28) | 50 % | - | |
| C | Investment aid for SMEs (17) | 10 % (medium) / 20 % (small) | - | |
| C | Investment aid for testing and experimental infrastructures (26a) and experimental infrastructures (26a) | 25 % | 5 % (if >80% capacity for SMEs) | 10 % (medium) / 20 % (small) |
| D | Aid for innovation clusters (27) | 50 % | - | - |
| A-D | De-minimis | 60 % (large enterprises) / 85 % (SMEs) | - | - |
Deadlines for submission of outlines
- Modules A, B, D: By 15 April and 15 October of each calendar year. April and 15 October of a calendar year (for the first time 15 January 2025).
- Module C: On 15 October of each calendar year (for the first time in 2025).
Application procedure
The application procedure consists of two stages.
- Sketch submission: In the first stage, a project outline is submitted electronically via the project portal.
- Formal application: Following a positive assessment of the outline, applicants are invited to submit a formal application via the “easy-Online” electronic system.
The outlines are evaluated by the BMWK, supported by the project management organisation and, in the case of modules B and C, also by an advisory committee.
Who can I contact?
The VDI Technologiezentrum GmbH is responsible for managing the funding programme:
VDI Technologiezentrum GmbH
Projektträger Industrielle Bioökonomie
VDI-Platz 1
40468 Düsseldorf
Telephone: +49 2 11/62 14-527
Email: Industrielle-Biooekonomie@vdi.de
How long is the funding guideline valid for?
The funding guideline came into force on 28 September 2024 and is limited until 30 June 2027. An extension until 31 December 2028 at the latest is possible under certain conditions.