IPCEI

What is an Important Project of Common European Interest (IPCEI)?

An Important Project of Common European Interest (IPCEI) is a large-scale, pan-European project bringing together companies from at least four Member States to strengthen a strategic value chain. Its purpose is to finance major investments in R&D, first industrialisation, and open infrastructures where the market alone cannot provide sufficient support.

Projects must demonstrate innovation beyond the global state of the art, clearly contribute to the European Union’s strategic objectives, and generate positive spillovers across the European ecosystem.

 

 

What is the IPCEI application process?

The process to join an IPCEI is structured and lengthy, involving Member States, companies, and the European Commission in succession.

The main stages, from the initial call for expressions of interest to the disbursement of funding, are as follows:

1. Publication of national strategies and identification of priority sectors

IPCEIs begin with the definition of national strategies. Member States identify sectors that warrant exceptional support. For instance, in November 2024, fifteen Member States approved the creation of an IPCEI on Advanced Semiconductor Technologies.

This stage determines the launch of the forthcoming call for expressions of interest (CEI). Companies need to anticipate these announcements, as the quality of the application largely depends on project maturity at this stage.

2. Responding to the Member State call for expressions of interest

Interested companies must respond to calls published by their national authorities. This initial national screening assesses:

• strategic contribution
• industrial or technological capacity
• job creation potential
• alignment with the EU IPCEI roadmap

Only companies selected at the national level can proceed to the next stage.

3. Matchmaking phase and formation of the European consortium

IPCEIs require a cross-border dimension. Pre-selected companies enter the matchmaking phase, identifying two or three partners from other Member States to form a coherent European consortium.

This stage enables:

• alignment of roadmaps,
• definition of technical complementarities,
• creation of integrated European value chains.

Strong collaboration at this stage significantly facilitates the remainder of the process.

4. Preparation of the pre-notification to the European Commission

After national selection and consortium formation, companies prepare the pre-notification to the European Commission. This is a critical stage, as it determines the final eligibility of state aid.

The pre-notification includes three essential documents:

• The Project Portfolio

Describes the project in full, covering technical objectives, scientific challenges, planned industrial deployment, financing plan, strategic impact, expected spillovers, and the breakthrough nature of the innovation. The European Commission evaluates whether the project truly exceeds the state of the art. Precision, coherence, and alignment with the Commission’s expectations are essential.

• The Funding Gap Questionnaire or Business Plan

This financial file identifies eligible costs and calculates the funding gap, i.e., the difference between the discounted project value and the value under the counterfactual scenario. Companies must model:

• investments
• expected revenues
• cash flows
• discount rates
• proportionality of the aid requested

The goal is to demonstrate that the aid requested is strictly necessary.

• The Prodcom File

Serves as a proxy for market shares, linking project outcomes to European product classifications. It allows the Commission to assess competitive impact and ensure that aid does not create disproportionate market distortion.

5. Formal notification and review by the European Commission

Once pre-notification is complete, Member States submit the official notification to the Commission. The project cannot start before this submission; only expenses incurred after pre-notification are eligible.

The Commission reviews:

• the project’s innovativeness
• coherence of the value chain
• financial robustness
• incentive effects
• proportionality of aid

6. Adoption of the compatibility decision and signing of the funding agreement

Following review, the Commission adopts its compatibility decision. Member States can then sign the funding agreement with each company, triggering the first IPCEI funding payment and enabling operational project implementation.

The entire process involves several stages, and we are here to support you at each one. Contact us to maximise your chances of success.

Eligibility criteria for IPCEI projects

• R&D&I projects must demonstrate innovation beyond the global state of the art, or open infrastructures accessible on a non-discriminatory basis.
• Cross-border collaboration between partners is a key criterion.
• Beneficiaries must commit to disseminating project results beyond IPCEI partners and funding Member States (spillovers).
• For financing Member States, investment and job creation commitments are decisive.

Approved IPCEIs

IPCEI Microelectronics 1 2018 State aid: EUR 1.9 billion Private investment: EUR 6.5 billion Participating States: Austria, France, Germany, Italy, UK Objective: develop innovative microelectronics and communication technologies to strengthen Europe’s digital capabilities.	IPCEI Microelectronics 2 (ME/CT) 2019 State aid: EUR 8.1 billion Private investment: EUR 13.7 billion Participating States: 14 Member States Objective: support the digital and green transition by developing advanced microelectronics, energy-efficient electronics systems, and resource-efficient industrial processes.
IPCEI Batteries 1 2019 State aid: EUR 3.2 billion Private investment: EUR 5 billion Participating States: Belgium, Finland, France, Germany, Italy, Poland, Sweden Objective: strengthen European competitiveness across the battery value chain, from raw materials to recycling.	IPCEI Batteries 2 (EuBatIn) 2021 State aid: EUR 2.9 billion Private investment: EUR 8.8 billion Participating States: 12 Member States Objective: complete the first Batteries IPCEI, covering extraction, cell manufacturing, and recycling.
IPCEI Hydrogen (Hy2Tech) 2022 State aid: EUR 5.4 billion Private investment: EUR 9 billion Participating Member States: Austria, Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Netherlands, Poland, Portugal, Slovakia, Spain Objective: to develop innovative hydrogen technologies to decarbonise industrial sectors and support the wider use of hydrogen as an energy vector.	IPCEI Hydrogen (Hy2Use) 2022 State aid: EUR 5.2 billion Private investment: EUR 7 billion Participating Member States: Austria, Belgium, Denmark, Finland, France, Greece, Italy, Netherlands, Poland, Portugal, Slovakia, Spain, Sweden Objective: to accelerate the industrial deployment of hydrogen technologies and develop infrastructures supporting an integrated hydrogen economy.
IPCEI Hydrogen (Hy2Infra) 2024 State aid: EUR 6.9 billion Private investment: EUR 5.4 billion Participating Member States: France, Germany, Italy, Netherlands, Poland, Portugal, Slovakia Objective: to deploy large-scale hydrogen infrastructures to support the uptake of hydrogen across multiple sectors.	IPCEI Hydrogen (Hy2Move) 2024 State aid: EUR 1.4 billion Private investment: EUR 3.3 billion Participating Member States: Estonia, France, Germany, Italy, Netherlands, Slovakia, Spain Objective: to support the development of hydrogen mobility through hydrogen-powered vehicles and adapted refuelling infrastructure.
IPCEI Cloud Infrastructure and Services (CIS) 2023 State aid: EUR 1.2 billion Private investment: EUR 1.4 billion Participating States: France, Germany, Hungary, Italy, Netherlands, Poland, Spain Objective: develop next-generation cloud infrastructures and services to support Europe’s digital transformation.	IPCEI Med4Cure 2024 State aid: EUR 1 billion Private investment: EUR 5.9 billion Participating Member States: Belgium, France, Hungary, Italy, Slovakia, Spain Objective: to support research, innovation and first industrial deployment of innovative medical devices and pharmaceutical processes.
IPCEI Tech4Cure 2025 State aid: EUR 403 million Private investment: EUR 826 million Participating Member States: France, Hungary, Italy, Slovakia, Slovenia Objective: to fund cross-border research and first industrial deployment of medical devices integrating advanced technologies, including digital technologies and AI, to enable predictive, preventive and personalised healthcare.

 

Table showing all approved IPCEIs with the number of participating companies, number of projects, approved state aid amount, expected private investment, and participating member states

New IPCEIs

If you plan to apply to a future IPCEI and would like more information, contact us now to benefit from our expert guidance.

Newly launched IPCEIs

• IPCEI Advanced Semiconductor Technologies (AST): strengthen Europe’s position in advanced semiconductors by supporting next-generation key technologies.
• IPCEI Artificial Intelligence (AI): build a European artificial intelligence ecosystem and support the development and deployment of industrial solutions.
• IPCEI Compute Infrastructure Continuum (CIC): develop a continuum of computing infrastructures, from cloud to edge, to support digital applications requiring performance, security, and interoperability.

IPCEIs endorsed at European level

• IPCEI Biotechnologies (Biotech):
  • IPCEI Bio-based chemicals: develop bio-based chemical products and processes to reduce the use of fossil resources.
  • IPCEI Bio-based materials: develop and industrialise innovative bio-based materials for industrial applications.
  • IPCEI Biotechnologies for food and feed: develop biotechnology solutions for human food and animal feed.
• IPCEI Circular Advanced Materials (CAM): develop innovative materials and technologies to accelerate the transition to a circular economy applied to clean technologies.
• IPCEI Innovative Nuclear Technologies (Nuclear): support the development and deployment of innovative nuclear technologies contributing to energy security and decarbonisation.

IPCEIs under discussion

• IPCEI Clean, Connected & Autonomous Vehicles (CCAV): develop technologies for clean, connected, and autonomous vehicles and their associated value chains.
• IPCEI Critical Raw Materials (CRM): secure the supply of critical raw materials and develop European processing and recycling capacities.

Exploratory IPCEIs

• IPCEI Quantum Computing: support the development of quantum computing technologies and related applications.
• IPCEI Carbon Capture, Utilisation and Storage (CCUS): develop carbon capture, utilisation, and storage solutions to reduce industrial emissions.
• IPCEI Low CO₂ Industries: accelerate the decarbonisation of energy-intensive industries through technological innovation.

Download our calendar of upcoming IPCEI deadlines

How are IPCEIs funded?

• Source of funds: Member States, in the form of state aid compatible with EU regulations (IPCEI Communication)
• Funded activities: R&D, TRL8/FID, open infrastructures
• Eligible costs: Opex and depreciation for R&D and FID, construction costs for infrastructures
• Aid rate: up to 100% of eligible costs according to the funding gap – the difference between total project costs and the revenue the project could generate under the counterfactual scenario without subsidy
• Concrete examples:
  • IPCEI Microelectronics 2018: 4 Member States, 27 partners, €1.7bn (~€63m per partner)
  • IPCEI ME/CT 2021: 14 Member States, 56 partners, €8.1bn (~€145m per partner)

How european economics supports its clients?

Since 2018, european economics has:

• Supported 148 projects across 11 IPCEIs in 13 Member States,
• Secured €16bn for its clients in IPCEI State aid approved by the European Commission.

We assist clients in engineering IPCEI-compliant projects, optimising funding, and preparing national application files and notifications to the European Commission, all the way to final approval.

Contact us to learn more.