Funding research and innovation for low carbon technologies in France The role of ADEME, public Agency François MOISAN Executive Director ADEME, Agence de l Environnement et de la Maîtrise de l Energie France
ADEME : public agency for energy and environment transition - Promoting new solutions for transition through Research, Innovation and Experimentation Support R&D&I on New Technologies, supporting innovative projects - Providing expertise for public and private actors Have a global vision and expertise in the fields of energy and environment - Supporting the generalization of good practices for energy transition among all actors Conception, demonstration and dissemination of tools and methodologies at the local level (local authorities), supporting exemplary investments for companies Budget : 590 M (annual) + 3.3 b fund for innovation (multiyear 2011 2016) Staff ~ 1 000-3 central sites (~50%) - 26 regional directions 2
Public support for RDI on low carbon technologies in France - Public funding agencies driving RDI programs on energy technologies : ANR (research generalist), ADEME (energy & environment), BPI (generalist innovation) - Funding Agencies support RDI through call for projects - Public research organisms support basic research conducted by their researchers (CNRS, CEA, IFPEN ) Basic research ANR Research and demonstrators Industrial development Business development ANR trl 1-3 ADEME R&D trl 4-6 ADEME PIA trl 7-9 BPI PIAVE trl 8-9 3
Identifying priorities with specific tools responding to specific questions 1) Road maps (public diffusion) 1) Elaborated in each thematic by ADEME with the participation of industry and academic experts. 2) Road maps are long term (2050) visions of deployment of technologies and options still at the stage of research. 3) Road maps allow to identify barriers to overcome for the deployment of technologies (technical, economic, sociological, administrative barriers in order to focus Call for Projects 2) Opportunity report 1) A strategic assessment of French actors position at world level and analysis of the industrial strategies 2) The output expected through call for projects and the level of funding What should be done in this area? 25 road maps elaborated since 2010 (most with English version) Is it worthwhile to invest public budget? Opportunity report prepared before call for projects 4
3.3 billions Euros, PIA Fund, managed by ADEME for innovation in energy and environmental transition (2011 2016) Budget managed by ADEME for innovation Mode of support Comments Grants 3,3 billions 970M 1 590M Reimbursable subsidies State aids : combination of grants and reimbursable subsidies dedicated to companies (SBC, MSC, Large companies) 570M 150M Venture capital SPV Venture capital SBCs Capital intervention directly managed by ADEME toward large companies Capital intervention toward SBCs in the framework of Eco-technologies fund 5
Investments for the future program (PIA) supports a large diversity of projects Projects funded variety Cost of project (in M ) 20 10 Long term Medium term Short term Time to market Large diversity of projects funded In term of projects cost Median value cost 10M average cost 25M 80% of projects represent 35% of credits In terms of maturity Selected projects : Technological Innovations Research demonstrators Industrial research, experimental development Pre-industrial experimentation/ first industrial Innovations in term of market, organization 6
Investment for the future (PIA) : increasing the pace of innovation in 22 thematic fields Program «Demonstrator for energy and ecological transition» Buildings Biodiversity CO2 capture, storage and utilization Biochemistry Wastes and industrial ecology Soils depollution Wind energy Marin energy Program «Future vehicle and transport» Electrical vehicle and charging infrastructures Hybrid and thermal Motorization Lighter Vehicle Trucks Mobility and logistic Railway Future boats Solar energy Water Geothermal Industrial Processes Smart grids Energy storage Hydrogen and fuel cells Objectives PIA role is to promote innovation in the framework of energy and ecological transition through : RDI funding Sharing the risk of market barriers for innovative options 7
Investment for the future (PIA) managed by ADEME : 2 intervention modalities 2 modalities of funding not cumulative on the same project State Aids Aids with systematic interest of State on project success «aids partially reimbursable» Grants reserved in priority to public labs Projects funded through competitive call for proposals. State aids under the EU framework of State Aids regulation (controlled by EU Commission DG competition) Capital Investment Equity and quasi equity Public intervention minority Co-funding of private actor Logic of market investor No State regulation Economic cost effectiveness 8
Investment for the Future Program (PIA) is effective for innovation enhancement An innovation tool targeted to companies 85% of budget going to companies Half of beneficiaries are SBCs Projects of large size For contracts with reimbursable aids : 2.6M aid in average by partner For contracts with only grants 380k aid in average (mainly for public labs and SBCs) Each project is conducted by a consortium of 4-5 partners. Example : 1 or 2 large company 2 SBC 1 public lab PIA : a powerful tool for innovation 285 projects selected (as Sept. 2015) > 900 contracts funded Strong leverage effect : project cost / public aid = 2.7 Important amount for each category 1.1 billion engaged (as Sept 2015) under state aids regime 344 M invested in venture capital directly by ADEME (through special purpose vehicle company : SPV) 30M invested in venture capital through Eco-technologies Fund 9
Example of project : ALSTOM OFFSHORE France (SPV Alstom ADEME) Large wind machine Objective : Industrialization of highly efficient wind generators (6 MW) Contribution to 2020 France objective of REN share in energy mix Construction of a French offshore wind industry, know-how, employment (creation of 7 000 directs and indirect jobs) Deployment of a new machine : Haliade 150 (6MW, pales 150 m diameter, nacelle at 100m) Disruptive technologies adapted at offshore (direct drive, generator with permanent magnets..) Company Total budget Place ALSTOM RENEWABLE Confidential Saint Nazaire & Cherbourg State of implementation Launched on 21 janvier 2013 10 1 0
Example of project GREENLYS Smart grid Program Objectives : - Test and deploy innovative solutions for the electric system (decentralized electricity generation, smart meters, management of distribution grids, new load-shifting and DSM offers and energy management solutions for customers) ; - Define a value chain for customers, distribution grid managers, energy suppliers, energy generators, industrial equipment manufacturers and local authorities ; - Design and ensure the integration of components into the smart electric system while conforming to key environmental, societal, technological and economic issues. Total Budget 36,8 M PIA subsidy 9,3 M Urban Type of demonstrator 1000 residential customers 40 tertiary sites Localization Duration State of implementation Lyon & Grenoble 4 years 100% 11 11
Example of project : OPTIMOD LYON Sustainable Mobility Project Stakes Coordinator Partners Duration Localization Total Cost PIA subsidy 3 years GRAND LYON 6,8 M 2,8 M City of Lyon benefits of various transport infrastructures and services. Commuting offer is very important and transport networks are dense but information is spread in as much sites as transport organizations. The project aims at developing a common data platform, smart phone application for commuters giving access to the optimal modes combination for travelling. One hour forecast of traffic with real time and historical data. The project concerns also goods delivery in the city with real time information on traffic and parking availability for trucks drivers Benefits Environmental and energetic : objective of a report of 8% from individual cars to collective transport : expected gain of 200 000 tons of CO 2 per year saved et 2020 on Grand Lyon area Societal : improvement of air quality and time saved in transport by commuters Economic : high level commercial new offers transferable to other cities (Toronto). Duplication of the project at EU level. 12
Example of project : Tidal Energy Pilot Farms, last step before commercial deployment NEPTHYD Project : 5.6 MW, 4 turbines Project cost : 101 M subsidies : 51 M NORMANDIE HYDRO : 14 MW, 7 turbines Project cost 112 M subsidies : 52 M 13
Conclusion : points of concern and evaluation - Accelerating the process of project expertise/selection : standardization of process allowed to reduce time from 9 12 months (2011 2013) to 3 months (2015) from project deposit to decision. - Enhance SBC participation : new call for projects dedicated to SBCs (grants 200 k ). - Ensure coherence of RDI risk with public policy (road maps give visibility to private sector), ADEME public operator of energy transition policy beyond RDI. - After PIA 1 (2010 2014), PIA 2 (2015 2017) ensured continuity. PIA 3 in preparation aiming at optimization of public dispositive - Evaluation could be done only after several years (typically 2020 and beyond when projects will reach commercial output) but intermediate evaluation will be done end of 2015 2016 through ad-hoc methodology. 14
Thank you for your attention Useful Web links : - Road maps : http://www.ademe.fr/recherche-innovation/construire-visions-prospectives/feuilles-route - Projects funded : http://www.ademe.fr/entreprises-monde-agricole/innover-developper/investissements-dave - Call for projects : http://www.ademe.fr/actualites/appels-a-projets?appels-en-cours=1&investissements-dave