A Nordic Initiative to contribute to the utilization of aquatic biomass through innovative and sustainable solutions

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Nordic Marine Innovation Programme 2.0 A Nordic Initiative to contribute to the utilization of aquatic biomass through innovative and sustainable solutions 1

1. Nordic Marine Innovation 2.0 background and overall aim The ongoing Nordic Marine Innovation Programme is the first of its kind in bringing the marine industry together across the borders in the Nordic countries. The Programme was launched in 2011 to meet challenges regarding sustainability, future competences and a better general perception of the sector. This resulted in 14 different projects with 100 participants involved in innovative solutions for recruitment, increased sustainability and image building. Read more about the Programme here: Nordic Marine Innovation Programme The objective of the Programme is to enhance the innovation capability in the Nordic marine sector and thereby its profitability and competitiveness in a global market. In line with this goal, Nordic Innovation, in cooperation with national and Nordic partner organizations, is launching a new call for proposals: Nordic Marine Innovation Programme 2.0. The aim of the new Programme is built on the current Programme: To utilize the full potential in the Nordic marine sector through innovative solutions that can increase the business opportunities, sustainability and profitability To fulfill the aim we are addressing the target group; suppliers of technology, knowledge and services within the marine industry. 2

National funding organizations This funding Programme is organized in cooperation with relevant stakeholders in the Nordic countries. FINLAND Ministry of Agriculture and Forestry Timo Halonen Timo.Halonen@mmm.fi ICELAND Rannis: Icelandic Centre for Research Sigurdur Bjørnsson sigurdur.bjornsson@rannis.is NORWAY Innovation Norway Sigridur Thormodsdottir Sigridur.Thormodsdottir@innovasjonnorge.no FAROE ISLANDS Ministry of Fisheries Fisheries Research Fund Jakup Mørkøre jakupmo@fisk.fo Nordic funding organizations AG-Fisk: Working group for Fisheries Co-operation Helge Paulsen hep@aqua.dtu.dk NORA: Nordic Atlantic Co-operation Lars Thostrup lars@nora.fo Nordic Innovation Elisabeth C. Smith e.smith@nordicinnovation.org National partner DENMARK: The Danish Ministry of Food, Agriculture and Fisheries. Anne-Marie Knuth-Winterfeldt amkw@naturerhverv.dk 3

2. Thematic areas This call aims to promote cross-sectorial innovation where the marine sector seeks to cooperate with other sectors in order to create better and/or new solutions. Projects should contribute to the utilization of aquatic biomass through innovative solutions that can increase business opportunities, sustainability and profitability within one or more of the three following topics: 1. New technology for sustainable production and use of aquatic biomass Technology solutions that will contribute to better and/or new use of biomass from fisheries, algae, aquaculture and other bio-resources to be used in the marine industry. The projects should focus on: Quality Efficiency Optimization New value chains 2. Sustainable land based and offshore aquaculture Projects should address innovative solutions for challenges regarding. Recirculation Aquaculture Systems Feed Smart solutions - Optimizing operational cost 3. Nordic sustainable marine solutions in a global context The projects should strengthen the position of Nordic companies in new markets and the main focus should be to: Transfer of knowledge and technology in fisheries and aquaculture. Create or adapt solutions in new markets 4

3. The application process This call for proposals will be structured as two-step process. First step: The first step is to submit a simple application form with a brief description of the project idea. The first step should contain: Explanation of the need for the project The added Nordic value of the project Project consortium Sketch of the budget Link to the application form After the application is submitted, the funding consortium will assess if the project meets basic eligibility criteria as described in section 6. After approval, the applicant will be invited to submit a full application. Projects that do not meet the basic eligibility criteria, are out of scope or lacking in quality will not be invited to submit a full application. Second step: In addition to a more substantial application, it is required that the applicant uploads a detailed and signed project budget, a company certificate, and a tax certificate 1 from the previous year from all the partners An external evaluation panel along with experts appointed by the national and Nordic funding agencies will evaluate the projects. Based on their recommendations Nordic Innovations board and the respective boards for the national and Nordic funding agencies will make the final decisions. If you are invited to submit a full application, you may have to apply to your national funder (information and guidance will be given after invitation to the second step). 4. Time line Deadline for the simple application is the 15.09.14, 12.00 (CET) Deadline for the full application is the 03.11.14, 12.00 (CET) The applicant will be notified of the funding decision in ultimo December 2014. 5. Budget The total amount of funding under this call for proposals is approximately 40 MNOK, depending on national co-funding. Nordic Innovation has allocated 15 MNOK to the call. 1 Norway: Firma- og skatteattest, Sweden: Registreringsbevis och årsredovisning, Finland: Kaupparekisteriote ja Verojen maksamisesta, Iceland: Ársreikningur, Denmark: Registreringsbevis skat og Branche registrering. 5

6. Basic eligibility criteria For a project to receive funding under this call for proposals, these basic eligibility criteria must be met: The project must include partners from at least three Nordic countries with a reasonable balance between the different nations. Nordic Innovation can only fund organizations and companies that are based and operate in one or more of the Nordic countries. No more than 50% of the budget can come from public funding. (All funders, including Nordic Innovation and EU count as public funding). The project must be at least 50% self-financed (either in form of working hours 2 and/or direct funding). Duration of the project must be no longer than 36 months The project must lead to a concrete result (new concept, process, product or service) that should be communicated and shared on a Nordic and international level. The project must have strong industry participation and as a general rule the project owner should be represented by the industry, (the project administrative leader does not have to be represented by the industry). 7. Assessment criteria: The assessment criteria for applications, are amongst others, the following during the evaluation of the projects: Is the project of very high quality and/or scientific and innovative value? Does the project provide added Nordic value, meaning: Does the project promote Nordic cooperation and build on existing synergies between at least three Nordic countries? Is the project creating more value by conducting the project on a Nordic level rather than just on a national level? Does the project address a real market need? Is the project innovative? Does it bring forward new value in the form of a new concept, process, business model, product or service? Is the applicant a user of the project results? Are the applicants providing substantial co-funding funding from businesses? A high degree of own investment from applicant will be assessed positively as it demonstrates commitment to the project. Is the project economic viable? 2 The overhead is included and calculated in the hourly rate. 6

Collaborative efforts will be prioritized. Such as efforts that combine multiple companies, public/private partnerships, Collaboration between academia and business and cooperation across Nordic borders. Quality of the consortium: E.g., are the right actors involved? Costs vs quality: Does the budget reflect the ambitions and quality of the project? Does project stimulate environmental sustainability? 8. Unqualified costs: Costs, which are not eligible for funding, include in particular (check with relevant organizations for further specificities and guidelines if the application is to be funded by national partners in the Programme): Basic research Investments in individual companies Independent freelance activities Writing applications Costs for procurement of equipment (may be approved under special circumstances). Overtime costs Salary increases, compared to the normal company salary. Indirect taxes and duties, including VAT "Return on capital employed", including dividends and other distributions of profits Provisions for possible future losses or charges Costs related to any interest Provisions for doubtful debts Unnecessary or ill-considered expenses Marketing, sales and distribution costs for products and services Leasing costs (or part thereof) where the leasing arrangement has the effect of unnecessarily increasing the charge made to the project (e.g. where the cost without interest of the leased equipment is higher than if purchased) 7

9. State Aid rules 9.1 Project funding: overview A project may receive funding from several agencies in this call for proposals. State aid rules only apply to project participants that conduct economic activity. If a project participant does not conduct economic activity, grants can be given without further consideration. Definition of economic activity: Any activity consisting in offering goods and/or services in a given market is an economic activity. In this context, the fact that the activity in question is termed social or is carried on by a non-profit operator is not in itself enough to avoid classification as an economic activity. There are some doubts with regard to whether grants from Nordic Innovation should be regarded as State aid subject to EU and EEA law. Pending clarification from the Nordic countries, Nordic Innovation has decided to follow the State aid rules, currently merely de minimis. The other funding agencies are not limited to de minimis grants. 9.2 Funding from Nordic Innovation The project partners that will receive funding from Nordic Innovation must be prepared to be eligible for de minimis state aid under Regulation 1407/2013 or 360/2012 (de minimis Regulations) as the funding from Nordic Innovation is planned to be granted as de minimis aid under this regulation 3. The target group in this call for proposals suppliers of technology, knowledge and services that promotes sustainability within marine industry may be granted de minimis aid up to EUR 200.000/500.000 over any three-year period. Please note that a lower ceiling applies for undertakings in the fisheries sector 4. The funding agency will collected the relevant information in the second step of the application process. The applicants are responsible for presenting the appropriate documentation. 3 Commission Regulation (EC) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid, published in the Official Journal of the European Union L 352/1 on 24.12.2013 4 De minimis aid in the fisheries sector is currently covered by Commission Regulation (EC) No 875/2007. Undertakings in the fisheries sector means undertakings active in the production, processing and marketing of fisheries products. Fisheries product covers both products caught at sea or inland waters and the products of aquaculture. The total de minimis aid granted to any one undertaking in this sector shall not exceed EUR 30 000 over any period of three fiscal years. The de minimis Regulation in the fisheries sector is under revision and changes in the definitions above may occur. For more information, please see: Consultations in the area of maritime affairs and fisheries: http://ec.europa.eu/dgs/maritimeaffairs_fisheries/consultations/index_en.htm 8

10. Contact For questions regarding the call, please conatct: Elisabeth Smith Administration Adviser Mobile: +47 977 47 082 E-mail: e.smith@nordicinnovation.org For questions regarding the application form or state aid rules, please contact: Haukur Stefánsson Senior Administration Adviser Mobile: +47 930 55 131 E-mail: h.stefansson@nordicinnovation.org 9