Investment Funding for Scale-Up Facilities (BayBioeconomy-Scale-Up)

The "BayBioeconomy-Scale-Up" funding program targets commercial enterprises with a registered office, branch, or business establishment in the Free State of Bavaria. It supports investments in innovative production facilities that serve the material utilization of biogenic raw materials or predominantly biogenic residues and waste materials, and demonstrate a positive climate effect. Small and medium-sized enterprises (SMEs) are given preferential consideration, but large companies are also eligible to apply for certain funding purposes. The overarching goal is to build a sustainable bio-based economy and strengthen regional value chains, especially in rural areas of Bavaria.

The funding program focuses on investments in innovative production facilities for the material utilization of biogenic raw materials or predominantly biogenic residues and waste materials with a positive climate effect. Projects that already have a high degree of maturity (TRL 8) and go beyond the existing state of the art to achieve significant greenhouse gas reduction are supported. Eligible are investments in new facilities, for the diversification of production, or for a fundamental change in existing processes.

The "BayBioeconomy-Scale-Up" program provides grants as co-financing for qualified investments. The funding amount varies depending on company size and type of investment, with small and medium-sized enterprises potentially receiving higher funding rates. A minimum expenditure threshold of 250,000 Euros must be observed. The program runs until June 30, 2027.

The program sets strict requirements for the funded facilities and projects, particularly regarding the use of biogenic raw materials, the technology readiness level, demonstrable environmental benefits, and climate protection effects. Additionally, applicants must prove their financial capability and may not claim other public funding for the same measure.

The application procedure is two-stage. First, interested parties submit a project outline, which is evaluated and selected. After a positive evaluation, applicants are invited to submit a formal funding application. The Government of Lower Bavaria is the approving authority.

The "BayBioeconomy-Scale-Up" funding program is based on a notice from the Bavarian State Ministry for Economic Affairs, Regional Development and Energy and is regulated by the Bavarian Budget Code and the EU's General Block Exemption Regulation. It is part of the Operational Program of the European Regional Development Fund (ERDF) in Bavaria 2021–2027.