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Funding for chemicals and materials

The chemicals and materials industries face investments that are often hard to carry on a conventional calculation: electrifying processes, deploying hydrogen, keeping residual streams in the loop, reducing CO2 and moving new materials from the lab into the plant. These projects are capital-intensive, run over several years and frequently carry technical or commercial risk. This is exactly where public funding comes in. It can support development, demonstration, scale-up and investment where companies advance new processes, materials or production methods. On this page you will learn which projects typically qualify and what matters in the application.

3D Spark
2R
Folienwelt
qlero
mm lab
Deutsche Firmenkredit Partner
ENTIAC
selecta one
DC Smarter
ZWF
Unternehmensgruppe Albert Weil
fierythings

The developments shaping your investments

New materials with defined properties. Coatings, catalysts and battery materials are increasingly designed rather than discovered, and most projects stall between lab and plant.

Substituting critical substances. Regulatory restrictions force companies to replace established substances without losing product properties.

Decarbonisation and electrification

Converting energy-intensive processes to electricity-based or hydrogen-based methods, including the process development behind them.

Circular processes and raw material recovery

Chemical and mechanical recycling, processing of residual materials and recovery of valuable materials from waste streams.

Development of new materials and catalysts

Materials with defined properties whose manufacturability and scalability first have to be demonstrated.

Demonstration and pilot plants

The step between laboratory scale and industrial production, where technical and commercial risk are highest.

Energy and resource efficiency in production

Waste heat recovery, process optimisation and reducing specific consumption where the effect cannot be derived from known methods.

The programmes behind it

In chemicals and materials, different funding instruments apply depending on the project phase. The Forschungszulage, ZIM and kmu-innovativ mainly cover development work.

Investment in plant, energy and resource efficiency can be supported through EEW, GRW, state programmes or promotional loans. For lower-emission processes with permanently higher operating costs, carbon contracts for difference can also be relevant.

Horizon Europe, EUREKA Eurostars and the EU Innovation Fund are relevant where international cooperation, demonstration or industrial scale-up is the focus.

What to watch in this sector

In chemicals and materials, funding risk frequently arises where technical development, plant investment and climate impact interlock. Three points are particularly critical.

01

Process development and plant construction get mixed

A new material or process can contain R&D elements, piloting and investment in plant. These parts follow different funding logics. If the costs attributable to development, demonstration or plant construction are not separated cleanly, reductions or exclusions loom.

02

Emissions reduction not robustly calculated

In climate and decarbonisation programmes, the demonstrable CO2 or greenhouse gas reduction frequently decides the outcome. That requires a clear baseline, robust assumptions, comparison scenarios and a traceable calculation of the expected effect.

03

Scale-up risks underestimated

Many projects work in the laboratory but fail at pilot or demonstration scale on process stability, quality, energy demand, raw material variation or permitting issues. Funding applications therefore have to show which technical risks exist at scale and how the project reduces them.

What this means for your funding

Work on a process, material or method whose technical performance is not established at the outset. The second funds investment: building, converting or extending plant where a technology is already sufficiently defined. A third logic addresses the ongoing additional cost of lower-emission processes, where low-carbon production is more expensive to run than the existing method.

The balance between these logics differs by country. In Germany, investment and transformation instruments carry a large share of this sector. In the Netherlands the emphasis sits more strongly on research and development, with demonstration and pilot work often addressed through energy-sector programmes rather than chemicals-specific ones.

How we work

We do not start with the application but with the question of which parts of your projects qualify and which funding logic they follow. Our specialists know the programmes and the evaluation practice in this sector.

Numbers you can hold us to

95%

Success rate

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Resources & Insights

Working with Ignite Group took a great deal of pressure off us. Thanks to […] their expertise, we always felt confident that our funding application was in the best hands.

Paula Hessing Senior Executive Assistant, MARKT-PILOT GmbH

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FAQs about funding advisory

View all FAQs

As a rule, a demonstration plant is a facility that tests and proves a new or substantially improved process at relevant scale for the first time, without yet being fully regular series or routine production. The exact delimitation between R&D, demonstration and investment decides which funding programme applies and is settled before the application.

Because funding programmes want to know whether a process or material also holds up outside the laboratory. What matters are questions such as scalability, process stability, raw material availability, quality, safety and commercial viability at relevant scale. We help make these open points visible and structure them into an eligible development or demonstration project.

Yes, many funding programmes allow multi-year projects, though with fixed durations, milestones and reporting obligations. In long development or demonstration projects it also has to be checked how costs, drawdowns and changes are handled across several financial years.

Yes, where the substitution creates technical uncertainty, for example because material properties, process stability, quality, safety or scalability first have to be tested. A pure change of supplier or the use of a known substitute through an established method, by contrast, is generally not eligible development.