Finally, there is an important carve out for R&D funding that doesn't really apply to R&D at all. It covers companies from TRL5 to TRL8 meaning companies building their first gigafactory (ie not really R&D) can apply for EUR100m's of state funding in one go. As opposed to lots of smaller raises.

Funds like the EU Innovation fund use a formula to cap how much you can ask for on any one project. This is calculated as a % of the NPV of your project over its first 10 years of operation. Then compared to the CO2 abatement of that project to derive a $ / tonne figure.

Importantly you cannot apply for multiple sources of state funding to de-risk your financing needs. So if you apply for funding from the EU Hydrogen Bank (because you are producing an RFNBO) you cannot apply for additional public funding elsewhere (e.g. EU Innovation Fund)

Once you've demonstrated market failure, and that state funding will make your project positive NPV, you then go BACK to private investors to seek their capital to fill-out the round.

Feels very backwards?

Most companies will show investors a project with a positive NPV and show the same project in their funding application. This is wrong. You have to show a *negative* NPV. AND demonstrate why state funding will make it positive (ie reduced capex).

You need to show:

1) your project needs state funding

2) there is evidence of market failure (ie private capital won’t invest)

Check out a company called Aurrigo. It’s a listed stock you can use to get exposure to electrification of airport ground fleets. Great idea but a hard nut to crack. Airports are very conservative customers and adopting these things brings in lots of risk.

This is % of new cars sold - right?

UK now phasing in road tax for EVs. So now I have to pay £190 like every other sucker on the road. And the insurance is about 5x the cost too. Maybe I can recoup it over time given a full charge at home is <£5. But the entry barriers are doing nothing to stimulate adoption.