Demonstration of solid biofuel supply and conversion to high efficiency CHP from fully sustainable regional value chains

Overview

The Horizon Europe call HORIZON-CL5-2026-11-D3-05 focuses on the demonstration of solid biofuel supply and conversion to high-efficiency combined heat and power (CHP) from sustainable regional value chains. The program aims to promote renewable energy through innovative actions while supporting the reconstruction of Ukraine. It offers a total budget of €13,500,000, specifically designating €6,750,000 per successful project, with two grants expected to be awarded. The application process is single-stage, opening on August 4, 2026, and closing on December 1, 2026.

Eligible applicants include small and medium enterprises, large companies, research institutions, universities, municipalities, and non-profits involved in the bioenergy sector. The call encourages strong collaboration among these entities, particularly with feedstock providers like farmers. The projects must demonstrate viable regional value chains utilizing locally sourced biofuels derived from upgraded biogenic residues and wastes.

The initiative will prioritize operational viability at a commercial scale (10-30 MWe CHP plants) and address the EU's climate and energy targets. Proposals are expected to include detailed plans for long-term base load operations, socio-economic and environmental sustainability, and effective strategies for exploitation and dissemination of results. The successful projects will also need to assess their impact on local ecosystems and job creation, focusing on avoiding negative environmental impacts and enhancing regional industrial resilience.

While co-funding is not explicitly required, strong financial plans and partnerships with industry and other funding sources (like the Innovation Fund) are highly encouraged. The anticipated success rates are low due to high competition, with only two grants expected amid numerous applicants.

This opportunity underscores the EU's commitment to renewable energy transition, regional economic development, and energy security in a changing geopolitical landscape.

Detail

This is a Horizon Europe call for proposals under the ENERGY (HORIZON-CL5-2026-11) call, specifically targeting the topic "Demonstration of solid biofuel supply and conversion to high efficiency CHP from fully sustainable regional value chains" with topic ID HORIZON-CL5-2026-11-D3-05. It is a HORIZON Innovation Action (HORIZON-IA) with a HORIZON Action Grant Budget-Based [HORIZON-AG] Model Grant Agreement. The call is forthcoming and uses a single-stage deadline model. The planned opening date is 04 August 2026, and the deadline for submission is 01 December 2026 at 17:00:00 Brussels time.

The expected outcome of this call is to foster fully sustainable regional bioenergy value chains and efficient conversion, which can significantly contribute to renewable power and heating generation, helping the EU achieve its climate and energy targets while bolstering European competitiveness and energy security.

The project results are expected to contribute to the following outcomes:

Demonstration of regional value chains for the use of locally and regionally sourced sustainable and cheap solid biofuel from upgraded biogenic residues and wastes, aligning with the Renewable Energy Directive, in high-efficiency CHP plants. This is expected to create opportunities for SMEs, regional value generation, European knowledge advancement, and international competitiveness in the sector.
Provision of flexible renewable power and heat to local industries, enabling high penetration of renewables in the energy system by ensuring sustainable bioenergy base load capacity.
Provision of replicable solutions for bioeconomy stakeholders to develop strategies aligned with energy and environmental policy objectives, contributing to decreasing the EU's and Ukraine's dependence on fossil fuels and increasing energy security.
Improved assessment of socio-economic and environmental aspects of the value chain by regulatory and permitting authorities, investors, and other key actors, focusing on circularity, industrial resilience, biodiversity, and soil carbon.

The scope of the call includes:

Demonstration of a viable regional value chain utilizing locally and regionally sourced sustainable and cheap solid biofuel from upgraded biogenic residues and wastes, compliant with the Renewable Energy Directive, in high-efficiency CHP plants (between 10 MWe and 30 MWe) for continuous, cost-effective, and low-emission operation.
Proposals should cover long-term scenarios for base load operation within the energy system network, ensuring socio-economic and environmental sustainability. This includes excluding negative impacts on other regional bio-based value chains and biomass uses, in line with the Renewable Energy Directive (also on cascading use), biodiversity, water balance, air quality, soil carbon stocks, and other bioeconomy sectors, assessed through a comprehensive life cycle analysis. The extraction of residues should respect locally defined retention thresholds for deadwood extraction and avoid negative impacts on soil quality and soil carbon.
Minimizing local ecosystem interferences by using biomass fuels from residues and wastes as the primary feedstock for the high-efficiency CHP plant. The biomass fuels should be produced using innovative preprocessing and upgrading technologies and advanced supply chains from a mixture of residues and wastes, excluding negative impacts not only overall but also in each individual harvest location. This results in specific operational, economic, logistical, and supply chain challenges that need to be addressed.
Proposals should include at least one regional value chain demonstration, including the use of solid biofuel with verified quality and demonstrated GHG and air-pollutant reduction in an operational high-efficiency CHP plant. Adequate involvement of feedstock providers (e.g., farmers, foresters, municipalities) is required to strengthen their position in the relevant value chains.
Demonstration of ways for future efficient, cost-effective, robust, resilient, and low-pollution CHP plants (including retrofitting and excluding co-firing with fossil fuels) in a local industrial context.
Plans for the exploitation and dissemination of results should include a strong business case and sound exploitation strategy. Collaboration with suitable networks like bioenergy clusters is encouraged to avoid overly site-specific solutions and enhance replicability. Exploitation plans should include preliminary plans for scalability, commercialization, and deployment (feasibility study, business plan), indicating potential funding sources, particularly the Innovation Fund.
Special attention should be given to estimating the GHG and air pollutant emissions reduction potential, using the methodology in the Innovation Fund. Projects are expected to include at least one relevant local economic business case, outlining local value and supply chains and the expected number of local jobs, including the overall industrial ecosystem at the place of deployment.
Projects are encouraged to support the reconstruction of Ukraine by covering regional value chains in Ukraine and/or involving Ukrainian beneficiaries.
The topic requires the effective contribution of SSH disciplines and the involvement of SSH experts and institutions, as well as the inclusion of relevant SSH expertise. SSH research should focus on enhancing synergies to achieve the topic’s objective in respect of socioeconomic sustainability. A gender-sensitive and intersectional approach can inform the development of inclusive solutions in solid biofuel supply and CHP by identifying specific needs, developing solutions that address these needs, and monitoring their impacts on diverse groups.

General conditions for admissibility, eligibility, financial and operational capacity, exclusion, evaluation, award, and legal and financial setup are described in the relevant annexes of the Horizon Europe Work Programme General Annexes.

Specific conditions are described in the specific topic of the Work Programme.

Application and evaluation forms, as well as the model grant agreement (MGA), are available in the Submission System.

Additional documents include:

HE Main Work Programme 2026-2027 – 1. General Introduction
HE Main Work Programme 2026-2027 – 8. Climate, Energy and Mobility
HE Main Work Programme 2026-2027 – 15. General Annexes
HE Programme Guide
HE Framework Programme 2021/695
HE Specific Programme Decision 2021/764
EU Financial Regulation 2024/2509
Decision authorising the use of lump sum contributions under the Horizon Europe Programme
Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment
EU Grants AGA Annotated Model Grant Agreement
Funding & Tenders Portal Online Manual
Funding & Tenders Portal Terms and Conditions
Funding & Tenders Portal Privacy Statement

The budget overview for the call includes several topics:

HORIZON-CL5-2026-11-D3-04 HORIZON-PCP HORIZON Pre-commercial Procurement: 40,000,000 EUR, single-stage, indicative number of grants: 1
HORIZON-CL5-2026-11-D3-05 HORIZON-IA HORIZON Innovation Actions: 13,500,000 EUR, single-stage, indicative number of grants: 2
HORIZON-CL5-2026-11-D3-06 HORIZON-RIA HORIZON Research and Innovation Actions: 18,000,000 EUR, single-stage, indicative number of grants: 4
HORIZON-CL5-2026-11-D3-14 HORIZON-IA HORIZON Innovation Actions: 30,000,000 EUR, single-stage, indicative number of grants: 4
HORIZON-CL5-2026-11-D3-23 HORIZON-IA HORIZON Innovation Actions: 30,000,000 EUR, single-stage, indicative number of grants: 3

Partner search announcements are available for collaboration on this topic. LEARs, Account Administrators, and self-registrants can publish partner requests on the Funding & Tenders Portal.

The submission system is planned to open on the date stated on the topic header.

Applicants are encouraged to carefully read all provisions before preparing their application. The Online Manual, Horizon Europe Programme Guide, and Funding & Tenders Portal FAQ are valuable resources. Support is also available through the Research Enquiry Service, National Contact Points (NCPs), Enterprise Europe Network, IT Helpdesk, European IPR Helpdesk, and CEN-CENELEC/ETSI Research Helpdesks.

In summary, this Horizon Europe call seeks to promote sustainable bioenergy value chains by supporting projects that demonstrate the use of solid biofuel in high-efficiency CHP plants. It emphasizes the importance of environmental and socio-economic sustainability, innovation in biofuel production and supply chains, and the potential for replicable solutions that contribute to energy security and climate goals. The call encourages collaboration, strong business cases, and consideration of the reconstruction of Ukraine.

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Breakdown

Eligible Applicant Types: The opportunity is open to a variety of applicants, including but not limited to: SMEs, feedstock providers (e.g., farmers, foresters, municipalities), regulatory and permitting authorities, investors, and other actors of the bioenergy value chain. The call also requires the effective contribution of SSH disciplines and the involvement of SSH experts and institutions.

Funding Type: The primary financial mechanism is a grant, specifically a HORIZON Innovation Action (HORIZON-IA) under the Horizon Europe program. The type of Model Grant Agreement (MGA) is a HORIZON Action Grant Budget-Based [HORIZON-AG]. There are also HORIZON Pre-commercial Procurement (HORIZON-PCP) and HORIZON Research and Innovation Actions (HORIZON-RIA) available.

Consortium Requirement: While not explicitly stated, the emphasis on regional value chains, involvement of feedstock providers, collaboration with bioenergy clusters, and the encouragement of partner searches suggests that a consortium of multiple applicants is strongly preferred, if not required.

Beneficiary Scope (Geographic Eligibility): The primary geographic focus appears to be the EU, with a specific encouragement to support the reconstruction of Ukraine by covering regional value chains in Ukraine and/or Ukrainian beneficiaries. The general conditions also mention eligibility for non-EU/non-Associated Countries, depending on specific provisions.

Target Sector: The program targets the energy sector, specifically renewable energy and bioenergy. It focuses on fully sustainable regional bioenergy value chains, efficient conversion technologies, and high-efficiency combined heat and power (CHP) plants. It also touches on agriculture/food (feedstock), climate, and innovation.

Mentioned Countries: Ukraine is explicitly mentioned, with encouragement for projects to support its reconstruction. The EU is implicitly mentioned as the primary geographic focus. Non-EU/non-Associated Countries are also mentioned as potentially eligible.

Project Stage: The project stage is primarily demonstration and innovation. The call aims to demonstrate viable regional value chains, efficient CHP plants, and replicable solutions. There is also a focus on scalability, commercialization, and deployment, suggesting a maturity level leaning towards commercialization and scale-up.

Funding Amount: The funding amounts vary by topic:
HORIZON-CL5-2026-11-D3-04: EUR 40,000,000
HORIZON-CL5-2026-11-D3-05: EUR 13,500,000
HORIZON-CL5-2026-11-D3-06: EUR 18,000,000
HORIZON-CL5-2026-11-D3-14: EUR 30,000,000
HORIZON-CL5-2026-11-D3-23: EUR 30,000,000

Application Type: The application type is an open call with a single-stage submission process.

Nature of Support: Beneficiaries will receive money in the form of a grant to support their projects.

Application Stages: The application process is a single-stage process.

Success Rates: The indicative number of grants is provided for each topic, allowing for a rough calculation of potential success rates, but the actual success rates will depend on the number of applications received.
HORIZON-CL5-2026-11-D3-04: 1 grant
HORIZON-CL5-2026-11-D3-05: 2 grants
HORIZON-CL5-2026-11-D3-06: 4 grants
HORIZON-CL5-2026-11-D3-14: 4 grants
HORIZON-CL5-2026-11-D3-23: 3 grants

Co-funding Requirement: The information does not explicitly state whether co-funding is required.

Summary:
This Horizon Europe call (ENERGY, HORIZON-CL5-2026-11) focuses on "Demonstration of solid biofuel supply and conversion to high efficiency CHP from fully sustainable regional value chains." It seeks to fund innovation actions (HORIZON-IA) that demonstrate viable regional value chains for sustainable and cheap solid biofuel derived from upgraded biogenic residues and wastes. The goal is to support the EU's climate and energy targets, enhance energy security, and contribute to the reconstruction of Ukraine. Projects should demonstrate long-term scenarios for base load operation, ensure socio-economic and environmental sustainability, and involve feedstock providers. The call encourages collaboration with bioenergy clusters and emphasizes the importance of a strong business case and exploitation strategy. The indicative budget for the HORIZON-CL5-2026-11-D3-05 topic is EUR 13,500,000, with an expected 2 grants to be awarded. The call opens on August 4, 2026, and closes on December 1, 2026. The call also includes HORIZON Pre-commercial Procurement (HORIZON-PCP) and HORIZON Research and Innovation Actions (HORIZON-RIA) with different budget allocations.

 The European Union's Horizon Europe program is funding this opportunity, which aims to promote sustainable bioenergy value chains and efficient conversion technologies. The projects should demonstrate regional value chains using locally sourced, sustainable, and affordable solid biofuel from biogenic residues and wastes, in line with the Renewable Energy Directive. The projects should also contribute to the EU's climate and energy targets, enhance energy security, and support the reconstruction of Ukraine. The projects should involve a consortium of applicants, including SMEs, feedstock providers, regulatory authorities, investors, and SSH experts. The projects should focus on demonstration and innovation, with a maturity level leaning towards commercialization and scale-up. The funding amounts vary by topic, ranging from EUR 13,500,000 to EUR 40,000,000. The application process is a single-stage open call, and beneficiaries will receive money in the form of a grant. The success rates will depend on the number of applications received. Overall, this opportunity aims to foster the development and deployment of sustainable bioenergy solutions that contribute to the EU's climate and energy goals while supporting regional development and the reconstruction of Ukraine.

Short Summary

Impact
This funding aims to demonstrate viable regional value chains for sustainable solid biofuel derived from upgraded biogenic residues and wastes, contributing to the EU's climate and energy targets while supporting the reconstruction of Ukraine.
Applicant
Applicants should possess expertise in renewable energy systems, bioeconomy, and project management, with a strong emphasis on collaboration among diverse stakeholders including feedstock providers and bioenergy clusters.
Developments
The funding will support projects focused on the demonstration of solid biofuel supply and conversion to high-efficiency combined heat and power (CHP) plants, emphasizing sustainability and regional integration.
Applicant Type
This funding is designed for a broad spectrum of applicants including SMEs, large enterprises, research institutions, universities, local authorities, and non-profit organizations involved in the bioenergy sector.
Consortium
A consortium of multiple applicants is strongly preferred, emphasizing collaboration among various stakeholders in the bioenergy value chain.
Funding Amount
€6,750,000 per project, with a total budget of €13,500,000 for 2 expected grants.
Countries
The funding is primarily relevant for EU Member States and explicitly encourages participation from Ukraine to support its reconstruction.
Industry
This funding targets the renewable energy sector, specifically focusing on bioenergy and sustainable energy systems.

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