Sustainability

eu-extends-crisis-state-aid-rules-to-prevent-green-tech-firms-from-leaving

EU extends crisis state aid rules to prevent green tech firms from leaving

The EU Commission is extending the relaxation of state aid rules to prevent green tech firms from relocating abroad and enable the bloc’s transition to a net-zero economy.

The rules around national subsidies had already been amended in 2022 as a response to Russia’s war on Ukraine, seeking to enable member states to more easily finance struggling companies and energy production in Europe.

Now, rising concerns about an escalating global subsidy race have pushed the EU to further prolong this temporary crisis framework — and even expand its scope to include support to domestic clean tech companies fighting climate change.

The move seems to be heavily influenced by the US’ Inflation Reduction Act (IRA), which offers $369 billion in subsidies for green technologies “made in America.” This has triggered fears that EU companies will be tempted to relocate their business to the US.

To avoid a potentially catastrophic blow to the bloc’s long-term competitiveness in the green tech industry, the Commission has adapted the state aid rules to streamline the approval of subsidies for companies that accelerate the rollout of renewable energy, energy storage, and the decarbonisation of industrial production processes.

The EU has targeted six main sectors: batteries, solar panels, wind turbines, heat-pumps, electrolysers, and carbon capture usage and storage. This also includes production of key components as well as the manufacturing and recycling of related critical raw materials.

“The framework gives member states the option to offer aid in a fast, clear, and predictable way.

The amended rules will provide member states with more flexibility to inject public funds, allowing for higher aid ceilings and simplified aid calculations.

SMEs and companies located in disadvantaged regions are eligible for higher support, while EU nations can also access larger funds if the aid is provided via tax advantages, loans, or guarantees.

To prevent cases in which the risk of relocation is high, countries will have a “matching aid” option. That is, to match the subsidies offered by a non-EU government and keep the company within the union’sborders. Alternatively, member states will be able to cover the funding gap the company expects to have.

“Our rules protect the level playing field in the single market.

To ensure that these options don’t provoke unfair competition in the bloc, the Commission has put three safeguards in place:

  1. The aid can be granted to companies in less developed areas, or to projects located in at least three member states.
  2. Eligible companies need to use state-of-the-art production technology from an environmental emissions perspective.
  3. The aid cannot trigger relocation of investments between member states.

EU countries can make use of the new rules until 31 December, 2025, but disbursements could continue afterwards as well.

“The framework that we have adopted today gives member states the option to give state aid in a fast, clear, and predictable way,” Margrethe Vestager, Executive VP in charge of competition policy, said in a statement.

“Our rules enable member states to accelerate net-zero investments at this critical moment, while protecting the level playing field in the single market and cohesion objectives. The new rules are proportionate, targeted, and temporary.”

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insect-farming-startup-targets-pet-food-as-gateway-to-human-consumption

Insect farming startup targets pet food as gateway to human consumption

Evolving views on food are challenging traditional diets — and not just for humans. Innovative dining options are also being added to the menus of our pets.

Startups have proposed numerous new ways to satiate their appetites. The UK’s Bella and Duke, for instance, caters to animals on raw diets, while Sweden’s Buddy Pet Foods serves natural dry food, and Portugal’s Barkyn personalises their grub.

If none of those excites their palates, our furry friends could try a more avant-garde delicacy: insects.

That’s what’s cooking in the kitchen of FlyFeed, an Estonia-based startup.  The company has developed an automated farming system that turns fly larvae into animal feed. 

“It’s challenging for humans, but a no-brainer for animals.

Arseniy Olkhovskiy, who founded FlyFeed in 2021, said the concept emerged from research into malnutrition. He concluded that insect farming can provide an affordable and sustainable solution to protein shortages. But he plans to feed animals before approaching humans.

“It’s challenging in human food right now, because people don’t really want to eat something connected to insects — but it’s a no-brainer in animal feed,” Olkhovskiy told TNW.

The 24-year-old rattles through a lengthy list of benefits of farming insects: they’re fed reprocessed waste that would otherwise rot in dumps; they grow up to 100 times faster than conventional animal food sources; they’re rich in high-quality nutrients; their production costs are minimal; and they require far fewer environmental resources than traditional agriculture.

Olkhovskiy promises they’re also highly palatable for pets. He says that his own cat is a fan of the flavours.

Arseniy Olkhovskiy, 24, who studied over 40 alternative food production technologies and claims insect protein meal can become three times cheaper than chicken meat by 2027
Olkhovskiy studied over 40 alternative food production technologies before focusing on insect farming. Credit: FlyFeed

FlyFeed is not the first startup to turn insects into pet food. Ÿnsect in France has spent over a decade producing ingredients from mealworms, while Jiminy’s in the USA processes protein from crickets. FlyFeed uses another insect: black soldier flies. 

This species has several attractions. The larvae can convert organic waste into edible protein for animal consumption and fertiliser. They’re also suitable for wet food, high in various nutrients, don’t transfer diseases, and have a fast growth rate.

The insects will be reared on agricultural leftovers in vertically-stack crates, which reportedly require 100 times less space than soybean or livestock farming. The facility will also harness data-driven climate control to optimise conditions, and computer vision to monitor the larvae development.

Vertical crates
Vertical farming was chosen for its scalability. Credit: FlyFeed

Protein from the farm will be incorporated into comestibles. FlyFeed plans to deliver the first commercial batch of the product next year. Annually, the company aims to convert 40,000 tonnes of waste into 17,500 tonnes of insect products. The output will be split between proteins, fats, and fertilisers. 

If all goes well, the early produce will provide a stepping stone to human consumption.

“First, we need to scale it,” said Olkhovskiy. “We need to make it cheaper, we need to make it of standardised quality, and we need to also bring it to markets where people actually need it.”

Artist's impression of the factory.
Artist’s impression of the factory. Credit:FlyFeed

According to Olkhovskiy, other insect farming startups have struggled to market their food to humans. He’s chosen to instead focus on the operational and technological challenges. Once they’ve been overcome, Olkhovskiy plans to distribute the produce in countries where malnutrition is most critical. He expects to drive adoption through a low price point. While a kilo of protein from cheap chicken broilers goes for 4$, he says, a kilo of FlyFeed protein costs under 2$.

In Europe, however, the low prices are yet to create demand. According to a 2020 EU report, only 10% of Europeans are willing to swap meat for insects.

There are, however, signs that attitudes could change. A study published last December found people were more open to eating insects after learning about the environmental benefits.

Regulators are also starting to embrace the possibilities. In January, the EU approved the sale of house crickets and larvae for human consumption.

Still, it seems unlikely that we’ll all be eating flies in the near future. But perhaps our pets can convince us to give them a try.

Insect farming startup targets pet food as gateway to human consumption Read More »

plan-to-build-uk’s-first-battery-gigafactory-falls-out-of-british-hands

Plan to build UK’s first battery gigafactory falls out of British hands

Plan to build UK’s first battery gigafactory falls out of British hands

Ioanna Lykiardopoulou

Story by

Ioanna Lykiardopoulou

Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives. Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives.

Britishvolt, a prominent UK battery startup, had generated enthusiasm over its plans to build the country’s first battery gigafactory. But after filing for administration in January, it has now been bought by Australian firm Recharge Industries.

Launched in 2019, Britishvolt had planned a £3.8 billion battery plant near the Port of Blyth in Northumberland, promising 300,000 batteries per year, the creation of 3,000 direct jobs, as well as a significant boost to the region’s economy and the UK’s production of EV batteries.

Despite gaining a funding pledge by the government and partnering with major companies like Aston Martin and Glencore, in January, the startup filed a court notice to appoint administrators, after failing to secure sufficient funding. Consequently, Britishvolt terminated its employees, the plant’s construction was halted, and no commercial battery was ever produced.

Now, battery maker Recharge Industries has won the bid to buy Britishvolt out of administration. The Australian startup is owned and run by a New York-based investment fund, Scale Facilitation.

“Our proposal combined our financial, commercial, technology, and manufacturing capabilities, with a highly credible plan to put boots and equipment on the ground quickly,” David Collard, founder and CEO of Scale Facilitation, said in a statement.

As he told the BBC, Britishvolt will maintain its name, but will follow a different direction. It will now focus on batteries for energy storage with the aim to commercialise them by the end of 2025.

This leaves the UK with only one existing battery plant, next to the Nissan factory in Sunderland. The plant is owned by Chinese company Envision AESC.

But it’s not just takeovers by overseas companies that threaten the UK’s plans to build a competitive battery production sector. According to 2022 EU data, some 20 battery gigafactories are being developed across the bloc alongside 111 industrial battery projects.

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