At the initiative of the Minister of Economy, Willy BORSUS, the Walloon Government approves the results of the call for projects “Strengthening energy-saving investments in industry and in the value chains linked to the transition”, launched as part of the RePowerEU measure.
The decarbonisation of (industrial) businesses is a crucial challenge, but also an immense opportunity to shape a more sustainable future. Every step towards a reduced carbon footprint represents progress towards a more resilient economy. Technological progress and innovation play an essential role in this transition, offering innovative solutions to minimise emissions and maximise energy efficiency.
Launched in July 2023, the winning projects from the call for projects dedicated to strengthening low-carbon and energy-saving investments in industry, as well as investments in the value chains linked to the energy transition, have today been selected by the Walloon Government.
This call was launched as part of the Recovery Plan and the European RePowerEU plan (a proposal by the European Commission aimed at ending dependence on Russian fossil fuels by 2027). It was carried out with the help of officials from WalEnergie (Wallonie Entreprendre) and SPW EER.
As a reminder, the RePowerEU strategy is based on four pillars: saving energy, replacing Russian fossil fuels with other hydrocarbons, promoting renewable energy and investing in new infrastructure such as liquefied natural gas (LNG) terminals. The call for projects therefore fully aligned with these objectives.
For Willy BORSUS: “Wallonia's ambition is to accelerate the transition to a low-carbon, more sustainable and climate-resilient economy. We are therefore fully committed to supporting this evolution. The quality of the selected projects and the strong mobilisation of stakeholders demonstrate a genuine collective will to meet the challenges facing us and to support our industrial sectors through innovative solutions.”
The call for projects comprised two parts:
Part 1: Strengthening low-carbon and energy-saving investments in industry.
Part 2: Strengthening investments in the value chains linked to the energy transition
PART 1 - Strengthening low-carbon and energy-saving investments in industry
The aim of Part 1 was to identify projects with strong potential to improve efficiency or mitigate greenhouse gases in the following areas:
- Improving industrial production processes, including modifying equipment to encourage “fuel switching”;
- The direct or indirect reduction of greenhouse gas emissions (exclusively for companies covered by the ETS).
To be eligible, projects had to meet at least one of the following criteria:
- Net improvement in energy efficiency with a reduction threshold of 1 GWh in energy consumption
- Net reduction in greenhouse gas emissions with a threshold of at least 1,000 tonnes of CO2 equivalent per year (for ETS companies)
The budget allocated to this part was initially set at €21 million. However, given the quality of the projects submitted, additional funding was released, bringing the maximum aid to €26,015,977.65, allowing all selected and eligible projects to be financed.
Of the 25 projects submitted, 15 were therefore selected and funded, namely the projects submitted by the companies Belourthe, AGC Glass Europe SA, Couplet Sugars, Safran, Prayon, Aperam Stainless Belgium, BENEO Orafti SA, Wienerberger, Essity PLD Belgium, 3B Fibreglass, Ecofrost, NLMK La Louvière. In addition, the project submitted by Carmeuse is selected subject to the condition precedent of the creation of a legal entity under Belgian law, as well as verification of the absence of conflicts of interest and double funding.
The 15 selected projects represent €103.375 million in investment (CAPEX) and should enable a reduction in gas consumption of around 321 GWh.
PART 2 - Strengthening investments in the value chains linked to the energy transition
The aim of Part 2 was to identify projects with strong reindustrialisation potential and a sufficient level of maturity (guaranteed investments at company or group level).
The call was aimed at companies, established or in the process of being established, with mature industrial projects. It was also open to projects already validated under international or national calls, provided they had not yet been implemented. It aimed to create value chains in the battery and hydrogen sectors.
At the end of the call, 6 projects were submitted. Following an in-depth analysis and assessment of their technical, legal and financial feasibility, 4 projects were selected by the Walloon Government.
The Government has therefore decided to grant a subsidy to the projects of John Cockerill Hydrogen Belgique, PRAYON sa, NUODE and BOTREE. The total amount of subsidies granted is €57,354,865.55.
Note that, in the case of BOTREE, the granting of the subsidy is still subject to the creation of a legal entity under Belgian law (with a BCE company number) and confirmation of the absence of conflicts of interest.
These 4 projects represent an estimated investment of €719.2 million and should create 656 jobs.
As a reminder, a call for expressions of interest targeting investments in the battery sector was launched by the Walloon Government via Wallonie Entreprendre on 6 April 2023. This call aimed to support the establishment of battery production, refurbishment and recycling projects, as well as the reuse of by-products.
A budget of €25,494,800 had already been allocated by Wallonia to this project in the form of loans.
The second part of this call aims to support the profitability of projects in Wallonia through subsidies, thereby offering companies a funding and support opportunity. Although these two calls pursue a common objective, they followed separate selection procedures. Applicants from the first call were also able to participate in Part 2 of this new call in order to benefit from all the funding sources made available by the Walloon Region. Three projects selected here, led by Prayon, Nuode and Botree Cycling, will benefit from both funding mechanisms made available by the Walloon Region.