EU Innovation Fund backs 20 startups in €3.4B net-zero awards

On 19 October 2026 the European Commission announced the selection of 77 net-zero technology projects. The projects will receive 3.4 billion euros in support from the EU Innovation Fund. According to the analysis by EU-Startups, 20 of these projects involve startups, scaleups and young technology companies: about 26% of the total. The figure captures the weight of emerging companies in European industrial decarbonisation, beyond the large industrial groups traditionally at the centre of these programmes.

20 startups among the 77 projects selected for 3.4 billion euros

The selection covers projects in 23 countries of the European Economic Area, in the fields of clean energy, industrial manufacturing, carbon removal, sustainable fuels and critical raw materials, according to the announcement by the European Commission.

The programme is divided into five categories: 12 large-scale projects, 17 medium-scale, 20 small-scale, 12 CleanTech manufacturing and 16 pilot projects. The 20 startup-related companies identified by EU-Startups span all five categories. They range from large industrial developments to smaller demonstration and production facilities. It should be noted that the exact share of the 3.4 billion euros that will go to startup-linked projects is not yet known.

Large-scale projects with startup origins

Among the 12 large-scale projects, two companies already covered by EU-Startups stand out. Germany’s Vaeridion is developing the Microliner, a fully battery-electric regional aircraft for nine passengers. The target range is about 400 kilometres. The company was founded in Munich in 2021. The CAROLUS project aims to take the aircraft towards certification, industrial production and commercial operation in Germany. The company had closed a Series A round of 14 million euros in December 2024, for a total of 17 million in funding.

France’s GravitHy, founded in 2022, works on steel decarbonisation by producing low-emission iron with hydrogen instead of traditional coal-based processes. Its project in Fos-sur-Mer foresees a plant producing two million tonnes per year of briquetted iron, which steelmakers can use to produce lower-emission steel. In March 2025 the company had raised 60 million euros. Completing the large-scale list is Spain’s Greenertis.

Circular chemistry and the waste economy at medium scale

In the medium-scale category EU-Startups identified five startup-linked projects, four of which were already known to the outlet. The Netherlands’ ChainCraft turns organic waste into fatty acids through fermentation. The company was born in 2010 as a spinout of Wageningen University. It replaces fossil or palm-oil-derived ingredients in products such as animal feed, lubricants and coatings. It has raised 18.5 million in total.

Germany’s traceless materials, founded in Hamburg in 2020, has raised 39 million euros developing natural polymeric materials from agricultural residues as an alternative to conventional plastics. Spain’s H2SITE produces membrane reactors to separate hydrogen from various gas streams and carriers, including ammonia. The spinout of TECNALIA and Eindhoven University of Technology was founded in 2021. A 36 million Series B in January 2025 brings its totals to 57.9 million.

Sweden’s Cemvision tackles emissions from cement production. The company was founded in Stockholm in 2020. It had raised 10 million in seed funding in March 2024, with a first customer contract already signed. The fifth company is Sweden’s GreenIron.

Small-scale and pilot projects: emerging technologies in action

Among the 20 small-scale projects is Dublin-based XFuel. The company converts waste streams into low-emission “drop-in” fuels. These fuels can be used without modifications to engines or distribution infrastructure. In January 2026 it had announced 16.76 million euros for sustainable fuels for road, sea and aviation, bringing its totals to 30 million. The other startups in the category are France’s Enosis and Epyr and Lithuania’s Refinis.

In the pilot section, Brussels-based Sirona Technologies, founded in 2023, stands out. The company develops modular technology for direct CO2 capture from the atmosphere. Its Project Furu in Øygarden, Norway, has been selected for a grant of up to 9.1 million euros, subject to the finalisation of the funding agreement. Germany’s Reverion develops reversible power plants that convert biogas and hydrogen into electricity and vice versa. The spinout of the Technical University of Munich was founded in 2022. A 154.2 million Series B in September 2026 brings its totals to 228 million. Completing the list are Berlin’s C1 Green Chemicals, which produces renewable methanol through advanced catalysis (25 million in total), plus ICODOS and Flying Whales.

The European CleanTech manufacturing future

The category dedicated to CleanTech manufacturing includes three startups. Sweden’s Orbital Systems first made a name for itself with water-recycling showers and has raised 61 million euros. The company was founded in Malmö in 2012 by Mehrdad Mahdjoubi after a collaboration with NASA and Lund University.

France’s HoloSolis is building a large-scale photovoltaic manufacturing plant in Sarreguemines-Hambach, supported by more than 220 million in public and private funding. Germany’s Additive Drives develops high-efficiency electric motors by combining additive manufacturing with conventional technologies. The company was founded in Dresden in 2020. In February 2026 it had received 25 million to scale up production and expand internationally.

The Innovation Fund picture and the next steps

According to the European Commission, the 77 selected projects could avoid around 290 million tonnes of CO2 equivalent in their first ten years of operation. The programme is financed with the revenues of the EU Emissions Trading System, which reinvests the proceeds of the carbon market into low-emission technologies.

Demand far outstripped supply. The December 2025 call attracted 358 applications worth 17.5 billion euros. The initial budget was 2.9 billion. The selection, however, is not yet definitive funding. The 77 project promoters have been invited to prepare grant agreements with the executive agency CINEA, with final amounts and contractual conditions expected in the first quarter of 2027, as indicated on the Innovation Fund page.

Sources: