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TOPIC : Business case for industrial waste heat/cold recovery

Topic identifier: LC-SC3-EE-6-2018-2019-2020
Publication date: 27 October 2017
Focus area: Building a low-carbon, climate resilient future (LC)

Types of action: CSA Coordination and support action
DeadlineModel:
Planned opening date:
single-stage
12 March 2019
Deadline: 03 September 2019 17:00:00

Types of action: IA Innovation action
DeadlineModel:
Planned opening date:
single-stage
25 January 2018
Deadline: 13 September 2018 17:00:00

Time Zone : (Brussels time)
  Horizon 2020 H2020 website
Pillar: Societal Challenges
Work Programme Year: H2020-2018-2020
Work Programme Part: Secure, clean and efficient energy
Topic Updates
  • 01 March 2018 12:48

     IMPORTANT - Page limits applicable to proposals

    Applicants are allowed to remove the page break in the cover page of the template for the technical annex, i.e. the proposal text can start on the cover page.

  • 16 February 2018 15:41

    The Frequently Asked Questions for topic LC-SC3-EE-6-2018-2019-2020 can be accessed here.

  • 25 January 2018 11:18

    For topics LC-SC3-EE-1-2018-2019-2020 and LC-SC3-EE-6-2018-2019-2020 the threshold for the criteria Excellence and Impact will be 4. The overall threshold, applying to the sum of the three individual scores, will be 12. This will be applicable for the relevant call for proposals in 2018 and 2019 subject to the update of the H2020 Work Programme in summer 2018.

Topic Description
Specific Challenge:

Energy and fuels represent an important part of the production costs in several Resource and Energy Intensive Industries (REII). While a lot of technical progress has already been done in REII to reduce the energy consumption of the main industrial processes, significant parts of the input-energy are still lost in the form of waste heat/cold by gas, liquid or solid streams. Wide-scale deployment of industrial waste heat/cold recovery is hindered, among others, by the lack of financial/ economic justification for the required equipment and, at times, by the limited industrial applicability (i.e. process re-integration). Often, it is forgotten that directly or after an intermediate transformation step, the sources of heat/cold losses of a given industry can be a valuable resource for other industries and buildings/ District Heating and Cooling operators and that they could be of commercial interest for the waste heat/cold producer. Furthermore, other energy cooperation activities between industries can also contribute to increase their energy efficiency. Thus physical clustering (e.g., of buildings and processes, energy exchange, collective production) and/ or service clustering (e.g., joint contracting) can deliver a more stable cumulative demand, economy of scale for larger installations with higher efficiencies and smaller spatial footprint and an optimised demand response.

Scope:

2018 (Innovation action):

Cost-benefit models for industrial waste heat/cold recovery:

Proposals should develop integrated cost-benefit simulation tools that, based on the characterization of processes, heat/cold streams and other relevant variables, can determine the best utilisation options of recovered waste heat/cold and/ or surplus renewable energy from industrial and eventual other sources (when available). Proposals should also consider the possibility to contribute to efficient use/system integration of renewable energy sources through e.g. heat/cold storage and flexible production.

The proposals are expected to put forward simulation tools that would allow industrial sites/parks to determine the most financial attractive option for using their recovered waste heat/cold and/or surplus renewable energy. This should be based on, inter-alia, waste heat/cold recovery (and storage if necessary) costs (including equipment and process adaptation), retail and/ or whole sale energy prices, (new contracts) administrative and legal costs, (external connecting) infrastructure costs, internal and external demand, waste heat/cold as source of flexibility in electricity system. Other relevant variables should also be included, inter-alia, characterisation of barriers and opportunities on the DHC side (e.g. competition with other heat/cold sources, thermal storage, regulatory conditions). The simulation tools are expected to be flexible enough to allow a large number of different types of industrial sites/ parks to use it, i.e. should allow many energy intensive process characterizations irrespective of the industrial sector and geographic location, and should also take into account supply-demand dynamics.

The simulation tools should be validated through demonstration in real operating conditions in industrial facilities.

Proposals are expected to include clear business model development and a clear path to finance and deployment. Key partners should have the capability and interest in making the developed solution a core part of their business/service model to their clients.

Proposals are expected to look at relevant business models for the collaboration outside the plant/industrial park and have strong communication and dissemination components in order to reach many industries, large private facilities and public authorities.

This topic contributes to the roadmap of the Sustainable Process Industry through Resource and Energy Efficiency (SPIRE) cPPP.

The activities are expected to be implemented in the range of TRL 4-8 (please see part G of the General Annexes).

The Commission considers that proposals requesting a contribution from the EU of between EUR 3 and 4 million would allow this specific challenge to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

2019 (Coordination and support action):

Symbiosis in industrial parks and clusters- non-technological barriers

Proposals should improve the energy efficiency of industrial parks districts and clusters by unlocking the market potential and supporting the demand and offer of high-quality energy services by addressing at least one of the following points:

  • The development and testing of instruments facilitating, at customer/ business level, the actual implementation of energy cooperation such as setting up appropriate process and business organisation, operation and plant design, cooperation mechanisms, related contractual and financial arrangements, better planning, good practices. Proposals need to include capacity building activities such as skills development and engagement of senior and executive management (e.g. CEO, CFO, energy managers) of companies from industrial parks and other related stakeholders.
  • The development and testing of replicable business models and service concepts, at service provider level (i.e. ESCOs or other relevant 3rd party organisations such as DHC operators), for joint energy services such as identification of horizontal energy services attractive for businesses, identification of the most relevant innovative technical solutions, setting up contractual and financial arrangements, best practices, cost-reduction models. Proposals need to include capacity building activities such as sharing skills, know-how and specific expertise of ESCOs or other 3rd party organisations that would boost the market uptake for such joint energy services contracting in industrial parks.

This topic contributes to the roadmap of the Sustainable Process Industry through Resource and Energy Efficiency (SPIRE) cPPP.

Proposals need to also address legal issues in order to adapt regulatory and legal frameworks at local, regional and national level. Issues related to the sustainability of the proposed symbiosis in case one or more of the involved parties are changing activity (including leaving the park) should be taken into account. Proposals are expected to ensure applicability of the solutions to other industrial parks/ business sectors while strong communication and dissemination components will be needed in order to reach many industries, industrial park managers and ESCOs.

The Commission considers that proposals requesting a contribution from the EU of between EUR 1 and 2 million would allow this specific challenge to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

Expected Impact:

2018 (Innovation action):

Proposals are expected to demonstrate the impacts listed below, using quantified indicators and targets wherever possible:

  • Accurate prediction and holistic modelling of industrial waste heat/cold and/or surplus renewable energy from industrial or other sources from different geographical and market settings;
  • Better impact of the various factors/ variables on the cost-benefits of industrial waste heat/cold and/or surplus renewable energy from industrial or other sources;
  • Valorisation in assessments of cost-benefit of industrial waste heat/cold and/or surplus renewable energy from industrial and eventual other sources;
  • Number of industrial sectors/ sites/ parks, public authorities (including energy agencies), large private facilities (e.g. sport and shopping centres, non-energy intensive industrial parks) and DHC operators aware, interested and supporting the implementation of waste heat/cold and/or surplus renewable energy from industrial and eventual other sources recovery/use for process re-integration or commercial use, depending on the outcome of the simulations;
  • Primary energy savings triggered by the project (in GWh/year);
  • Investments in sustainable energy triggered by the project (in million Euro).

Additional positive effects can be quantified and reported when relevant and wherever possible:

  • Reduction of the greenhouse gases emissions (in tCO2-eq/year) and/or air pollutants (in kg/year) triggered by the project.

2019 (Coordination and support action):

Proposals are expected to demonstrate, depending on the scope addressed, the impacts listed below, using quantified indicators and targets wherever possible:

  • Primary energy savings triggered by the project (in GWh/year);
  • Investments in sustainable energy triggered by the project (in million Euro);
  • Number of (operational and organisational separated) plant sites (within one industrial park) and the number of industrial parks where businesses commit to energy cooperation;
  • Number of relevant stakeholders (e.g. ESCOs, industrial park managers) aware of and/or interested in/ implementing joint energy services;
  • Number of policies and legal frameworks created and/ or adapted to facilitate energy cooperation among businesses.

Additional positive effects can be quantified and reported when relevant and wherever possible:

  • Reduction of the greenhouse gases emissions (in tCO2-eq/year) and/or air pollutants (in kg/year) triggered by the project.
Delegation Exception Footnote:

It is expected that this topic will continue in 2020.

Cross-cutting Priorities:

Open Innovation
Contractual Public-Private Partnerships (cPPPs)
SPIRE

Topic conditions and documents

1. Eligible countries: described in Annex A of the Work Programme.
A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon 2020 projects. See the information in the Online Manual.

 

2. Eligibility and admissibility conditions: described in Annex B and Annex C of the Work Programme.  

Taking into account the nature of the activity and with the objective to maximize the European Added Value and European market uptake through transnational collaboration[[Transition towards Secure, Clean and Efficient Energy and the Energy Union project are cross-national policy initiatives and priorities aiming at trans-national solutions.]], the following additional eligibility criteria apply for Coordination and Support Actions (CSA):

  1. at least three legal entities shall participate in an action;
  2. each of the three legal entities shall be established in a different Member State or Associated Country

all three legal entities shall be independent of each other within the meaning of Article 8 of the Rules for Participation.

Proposal page limits and layout: please refer to Part B of the proposal template in the submission system below.

 

3. Evaluation:

  • Evaluation criteria, scoring and thresholds are described in Annex H of the Work Programme. 
  • Submission and evaluation processes are described in the Online Manual.

In line with the other topics for Innovation Actions contributing to the PPP on Energy-efficient Buildings and SPIRE, the threshold for the criteria Excellence and Impact will be 4. The overall threshold, applying to the sum of the three individual scores, will be 12.

4. Indicative time for evaluation and grant agreements:

Information on the outcome of evaluation (single-stage call): maximum 5 months from the deadline for submission.
Signature of grant agreements: maximum 8 months from the deadline for submission. 

5. Proposal templates, evaluation forms and model grant agreements (MGA):

Innovation Action:

Specific provisions and funding rates
Standard proposal template
Standard evaluation form
General MGA - Multi-Beneficiary
Annotated Grant Agreement

Coordination and Support Action:

Specific provisions and funding rates
Standard proposal template
Standard evaluation form
General MGA - Multi-Beneficiary
Annotated Grant Agreement

6. Additional provisions:

Horizon 2020 budget flexibility
Classified information
Technology readiness levels (TRL) – where a topic description refers to TRL, these definitions apply

Members of consortium are required to conclude a consortium agreement, in principle prior to the signature of the grant agreement.

8. Additional documents:

1. Introduction WP 2018-20
10. Secure, clean and efficient energy WP 2018-20
12. Climate action, environment, resource efficiency and raw materials WP 2018-20
18. Dissemination, Exploitation and Evaluation WP 2018-20

General annexes to the Work Programme 2018-2020

Legal basis: Horizon 2020 Regulation of Establishment
Legal basis: Horizon 2020 Rules for Participation
Legal basis: Horizon 2020 Specific Programme

7. Open access must be granted to all scientific publications resulting from Horizon 2020 actions.

Where relevant, proposals should also provide information on how the participants will manage the research data generated and/or collected during the project, such as details on what types of data the project will generate, whether and how this data will be exploited or made accessible for verification and re-use, and how it will be curated and preserved.

Open access to research data
The Open Research Data Pilot has been extended to cover all Horizon 2020 topics for which the submission is opened on 26 July 2016 or later. Projects funded under this topic will therefore by default provide open access to the research data they generate, except if they decide to opt-out under the conditions described in Annex L of the Work Programme. Projects can opt-out at any stage, that is both before and after the grant signature.

Note that the evaluation phase proposals will not be evaluated more favourably because they plan to open or share their data, and will not be penalised for opting out.

Open research data sharing applies to the data needed to validate the results presented in scientific publications. Additionally, projects can choose to make other data available open access and need to describe their approach in a Data Management Plan.

Projects need to create a Data Management Plan (DMP), except if they opt-out of making their research data open access. A first version of the DMP must be provided as an early deliverable within six months of the project and should be updated during the project as appropriate. The Commission already provides guidance documents, including a template for DMPs. See the Online Manual.

Eligibility of costs: costs related to data management and data sharing are eligible for reimbursement during the project duration.

The legal requirements for projects participating in this pilot are in the article 29.3 of the Model Grant Agreement.

 


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Type of Action Innovation action [IA]
Topic Business case for industrial waste heat/cold recovery - LC-SC3-EE-6-2018-2019-2020
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