Research Fund for Coal and Steel Horizon 2020 and Erasmus+ Innovation Fund

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1 European Steel: The Wind of Change Brussels Seminar, 31 January 2018 Research Fund for Coal and Steel Horizon 2020 and Erasmus+ Innovation Fund Hervé Martin and Domenico Rossetti di Valdalbero (RTD) and Roman Doubrava (CLIMA) 1

2 Research Fund for Coal and Steel RFCS

3 Steel high in the EU political agenda Commission Communication on Steel (16 March 2016) with Defence and Space EU Industry Day (28 Feb. 2017) including speeches from J. Katainen and E. Marcegaglia (Business Europe) Seminar on the future of European steel (8 March 2017) EU steel day May 10 th 2017 (10 May 2017) including speeches from J-C Juncker, A. Tajani, and E. Bienkowska SET-Plan Action 6 Efforts to make EU industry less energy intensive and more competitive Trade Defence Instruments - Trade Communication (13 Sept. 2017) and Harnessing Globalisation White Paper Commission Communication on A renewed EU industrial Policy Strategy (13 September 2017)

4 Research Fund for Coal and Steel - RFCS Managed by DG RTD, Unit D4 with inputs from: Member States COSCO, Coal and Steel Committee CAG and SAG - Coal and Steel Advisory Groups TGs - Coal and Steel Technical Groups Participation and typical projects: Any legal entity (industry, research centres, univ.) Industry-driven programme Average funding 1-2 M per project (for a consortium of 5-8 teams and 3-4 years duration) 4

5 RFCS legal structure Protocol (No 37) of TEU on the financial consequences of the expiry of the ECSC treaty and on the Research fund for Coal and Steel COUNCIL DECISION 2003/76/EC establishing the measures necessary for the implementation of the Protocol, annexed to the Treaty establishing the European Community, on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel COUNCIL DECISION 2008/376/EC on the adoption of the Research Programme of the Research Fund for Coal and Steel and on the multiannual technical guidelines for this programme Recently amended by the Council Decision 2017/955 of 29 May 2017 COUNCIL DECISION 2003/77/EC laying down multiannual financial guidelines for managing the assets of the ECSC in liquidation and, on completion of the liquidation, the Assets of the Research Fund for Coal and Steel

6 Year RFCS Budget financing decisions (current call) (estimation from ECFIN) (D4 estimation) (revision of 2003/76/EC)

7 Technical Groups Monitoring - Steel TGS 1 - Ore agglomeration and Ironmaking TGS 2 - Steelmaking Processes TGS 3 - Casting TGS 4 - Hot and cold rolling processes TGS 5 - Finishing and coating TGS 6 - Physical metallurgy and Design of new generic steel grades TGS 7 - Steel products and applications for automobiles, packaging and home appliances TGS 8 - Steel products and applications for building, construction and industry TGS 9 - Factory-wide control, social and environmental issues April 2018, Düsseldorf April 2018, Brussels 18 April 2018, Derio/Bilbao April 2018, Borlänge April 2018, Lisbon April 2018, Rome April 2018, Metz April 2018, Brussels 2-4 May 2018, Lyon 7

8 Steel Annual Priorities RFCS 2018 Embedded real-time analytics of large data streams to predict reliability of steel production plants and processes or to realise machine supported decisions on steel product quality along the production chain or to improve flexibility of production scheduling including human sustainable ergonomic aspects. Improvement in resource or energy efficiency in iron or steelmaking processes, by use of by-products/residuals or waste heat. Pilot/demonstration projects or Accompanying Measures of emerging and innovating technologies leading to energy efficiency improvements and CO2 emission reduction. 8

9 Horizon 2020 ERASMUS+

10 Horizon 2020 LEIT-NMBP: SPIRE Energy and resource flexibility in highly energy intensive industries (IA 50%) CE-SPIRE Efficient integrated downstream processes (IA) - CE- SPIRE Adaptation to variable feedstock through retrofitting (IA) - CE-SPIRE Digital technologies for improved performance in cognitive production plants (IA) - DT-SPIRE

11 Horizon 2020 LEIT-NMBP: SPIRE Improved industrial processing using novel hightemperature resistant materials (RIA) - CE-SPIRE Making the most of mineral waste, by-products and recycled material as feed for high volume production (IA) - CE-SPIRE

12 Horizon 2020 LEIT-NMBP: EEB ICT enabled, sustainable and affordable residential building construction, design to end of life (IA) - LC- EEB Integration of energy smart materials in nonresidential buildings (IA) - LC-EEB New developments in plus energy houses (IA) - LC- EEB Industrialisation of building envelope for the renovation market (IA) - LC-EEB

13 Horizon 2020 Societal Challenge 3 Energy Advanced CO2 capture technologies (RIA) - LC-SC3- NZE Conversion of captured CO2 (RIA) - LCE-SC3-NZE Strategic planning for CCUS development (CSA) - LC- SC3-NZE Low carbon industrial production using CCUS (IA) - LC-SC3-NZE

14 Lot 3 - Sector Skills Alliances for implementing a new strategic approach ('Blueprint') in six sectors: Additive manufacturing, Construction, Maritime shipping, Paperbased value chain, Renewable energy & green technologies, Steel industry. Total budget earmarked: 28 Mio. Depending on the Lot, grants will amount between (Lot 1) and (Lot 3). Around 15 proposals will be funded. Deadline 28/8/2018 Erasmus+ Programme Guide 2018 Sector Skills Alliances Erasmus+ Skills Alliance Guidance and supporting documents 14

15 Innovation Fund

16 Innovation Fund fund Support for low-carbon, innovative demonstrations 450+ million allowances, volume of funding will depend on carbon price (EUR 3-11 bn), to be progressively released until Utilisation of NER300 leftovers. Building on existing NER300 Programme for renewables and CCS, applying the lessons learned New: extension of scope to low carbon innovation in ETS Annex 1 industrial sectors (incl. CCU) and energy storage Open for big and small projects in all Member States, first round of support around 2020

17 Innovation Fund Innovation legal Fund basis (tbc) Scope: innovation in low-carbon technologies and processes including CCU, and products substituting carbon intensive ones produced in ETS Annex I sectors Environmentally safe CCS projects Innovative RES and energy storage - In geographically balanced locations within EU - Projects in all MS including small scale projects

18 Innovation Fund Expert consultations: No shortage of low-carbon solutions that should be demonstrated in the coming decade 85 pathways & technologies identified, many of them cross-sectoral Markets, technologies and investments change and evolve rapidly flexibility in eligible technologies Cross-sectorial cooperation may unlock new value chains and economic benefits, strong interest CCUS infrastructure, Hydrogen, Energy Storage or Integration of Renewables 18

19 Innovation Fund Financial support for projects should be linked to their risk profile A variety of financial products Milestones funding according to investment cycle Re-direct financing from underperforming projects to new projects Complementarity with other relevant EU and MS Financial Instruments Innovation Fund as a set of financing products and services Project lifecycle perspective (not programme perspective) 19

20 IF: Breakthrough Innovation technologies Fund Steel Improving energy efficiency beyond the state-of-the art New Smelting Reduction technologies Direct Reduction technologies, based on natural gas Direct Reduction technologies, based on hydrogen Direct use of electricity for iron ore reduction Use of biomass in steel production More recycling of steel Chemicals Increased resource and energy efficiency of process technologies Better utilisation of alternative sources of carbon: biomass, waste & materials More robust and tolerant production systems Industrial symbiosis Materials breakthroughs including better eco-design of materials, development of advanced sustainable recycling process, high performance functional materials for low carbon energy, mobility and housing. Hydrogen Hydrogen as a reducing agent in steel production Hydrogen-based production processes (non-ferrous metals) Hydrogen to take Sulphur out of transport fuels and for conversion schemes Fatal H2 generated as side stream Hydrogen as low carbon fuel for the transport sector Renewable hydrogen as storage medium

21 Innovation Fund Take an active part in shaping the Innovation Fund via public consultation opened until 10 April at: c-consultation-establishment-euinnovation-fund_en 21

22 Conclusions Breakthrough technologies needed for achieving EU energy/climate targets From CCS (and CCU) to hydrogen steelmaking and social acceptability (cf. 'Joint Initiative') Interactions with DG CLIMA, COMP, ENER, GROW and TRADE R&I with links to Skills, Health, Safety, Environment and Regions RFCS, H2020, Innovation Fund: scope alignment

23 Seminar follow-up Industry Day The conclusions of this seminar will feed the European Industry Day (22-23 February 2018) 1000 participants Eurofer stakeholder workshop 'European Steel industry main pathways towards the smart, low carbon industry of the future' DG RTD/GROW session on 'Sustainable Industry' (circular economy through Industrial symbiosis and low carbon technologies - SPIRE, RFCS) 23