EU-Startups identifies 20 startups among 77 projects selected for €3.4 billion net-zero funding

According to research by EU-Startups, 20 of the 77 European net-zero technology projects selected for €3.4 billion in EU Innovation Fund support involve startups, scaleups and younger technology ventures, highlighting the role of emerging companies in Europe’s industrial decarbonisation efforts.

Announced on 19 October 2026, the European Commission’s latest selection covers projects across 23 countries in the European Economic Area, spanning clean energy, industrial manufacturing, carbon removal, sustainable fuels and critical raw materials.

While established industrial groups account for much of the programme, EU-Startups’ analysis of the selected projects and their coordinating companies identifies 20 projects associated with younger technology businesses, representing approximately 26% of the 77 selected projects.

These 20 businesses span all five funding categories, from large industrial developments to smaller-scale demonstrations and manufacturing facilities.

Big industrial ambitions, startup origins

Among the 12 large-scale projects selected, two companies previously covered by EU-Startups stand out: Germany’s Vaeridion and France’s GravitHy.

Munich-based Vaeridion

• Founded in 2021, is developing the Microliner, a fully battery-electric regional aircraft designed to carry nine passengers. Its CAROLUS project aims to advance the aircraft towards certification, industrial production and commercial operation in Germany, with a targeted range of approximately 400 kilometres.
• In December 2024, EU-Startups reported on Vaeridion’s €14 million Series A funding round in order to support aircraft development and progress towards certification. Total funding sits at €17 million.

France’s GravitHy

• Founded in 2022, aims to decarbonise the steel industry by producing low-carbon iron using hydrogen instead of conventional coal-based processes. Its Fos-sur-Mer project plans to establish a facility capable of producing two million tonnes of hot briquetted iron annually, which steelmakers can use as an input for lower-emission steel production.
• In March 2025, EU-Startups covered GravitHy’s €60 million financing round. The capital was earmarked for engineering, permitting, recruitment and preparations for the company’s flagship industrial facility.

The remaining startup identified as large scale projects is Spain’s Greenertis.

From waste to circular chemistry

The medium-scale category includes five startup-associated projects, four of which involve companies previously covered by EU-Startups.

Netherlands-based ChainCraft

• Founded in 2010 as a spinout from Wageningen University, develops fermentation technology that transforms organic waste into valuable fatty acids. These chemicals can replace fossil-derived or palm oil-based ingredients used in products ranging from animal feed and lubricants to coatings and industrial chemicals.
• The company was previously included in EU-Startups’ overview of biotechnology companies in the Netherlands, which highlighted its proprietary fermentation processes and the range of applications for its medium-chain fatty acids. Total funding sits at €18.5 million.

Germany’s traceless materials

• Founded in Hamburg in 2020 by Dr Anne Lamp and Johanna Baare, develops natural polymer-based materials from agricultural residues as alternatives to conventional plastics. Total funding sits at €39 million.
• In September 2023, EU-Startups reported on the company’s €36.6 million financing round to support the construction of its first industrial production facility in Hamburg, which opened in 2026.

Spain’s H2SITE

• Founded in 2021 as a spinout from TECNALIA and Eindhoven University of Technology. The company develops membrane reactor technology that enables hydrogen to be separated from different gas streams and hydrogen carriers, including ammonia.
• EU-Startups previously covered H2SITE’s €36 million Series B round in January 2025. The company planned to use the investment to expand its hydrogen production and separation technologies into additional markets. Total funding sits at €57.9 million.

Sweden’s Cemvision

• Established in Stockholm in 2020, is pursuing a different industrial challenge: reducing the emissions associated with cement manufacturing.
• In March 2024, EU-Startups reported on Cemvision’s €10 million seed financing. The company was already working towards commercial adoption of its technology, having secured an initial customer contract.

The remaining startup in the medium-scale category is Sweden’s GreenIron.

Small projects, tangible applications

Among the 20 small-scale projects selected, EU-Startups identified four startups.

Dublin-based XFuel

• Develops technology for converting waste streams into lower-carbon fuels suitable for existing transport infrastructure. Its approach focuses on producing drop-in alternatives that can be used without requiring major modifications to engines or fuel distribution systems.
• In January 2026, EU-Startups included XFuel in its weekly funding roundup, following a €16.76 million financing announcement to support its development of sustainable fuels for road, marine and aviation applications. Total funding sits €30 million ($33.8 million).

The three other startup-associated small-scale projects are France’s Enosis, Lithuania’s Refinis and France’s Epyr.

Pilot projects put emerging technologies to work

Five of the 16 pilot projects selected involve startups identified by EU-Startups, including several companies that have previously attracted venture capital investment.

Brussels-based Sirona Technologies

• Founded in 2023 by Thoralf Gutierrez and Gauthier Limpens, develops modular direct-air-capture technology designed to remove carbon dioxide directly from the atmosphere.
• Its Project Furu, located in Øygarden, Norway, has been selected for a grant of up to €9.1 million, subject to the finalisation of the funding agreement. In June 2024, EU-Startups reported on Sirona’s €6 million seed funding round to support the development and deployment of its direct-air-capture systems.

Germany’s Reverion

• Founded in 2022 as a spinout from the Technical University of Munich, is developing reversible power plants capable of converting gases such as biogas and hydrogen into electricity, while also enabling electricity to be stored through gas production.
• The company has featured several times in EU-Startups’ reporting, most recently in September 2026, when it announced a €154.2 million Series B financing round.  The financing is intended to expand the company’s production capabilities and bring its reversible energy systems to additional industrial customers. Total funding sits at €228 million ($256 million).

Berlin-based C1 Green Chemicals

• Founded in 2022, is developing new chemical production processes using advanced catalysis. Its initial commercial focus is renewable methanol, which can replace fossil-derived methanol in industrial manufacturing and serve as an alternative fuel for shipping.
• In March 2025, EU-Startups covered C1 Green Chemicals’ €20 million financing package, comprising €15 million in investment and €5 million in approved research grants. The financing was intended to support the development of a demonstration plant and accelerate commercialisation. Total funding sits at €25 million.

Completing the startup-associated pilot projects is Germany’s ICODOS and France’s Flying Whales.

Manufacturing Europe’s CleanTech future

The CleanTech manufacturing category includes three startups – all companies previously featured by EU-Startups.

Sweden’s Orbital Systems

• Founded in Malmö in 2012 by Mehrdad Mahdjoubi following collaboration involving NASA and Lund University, initially gained attention for its water-recycling shower technology.
• Orbital Systems was featured by EU-Startups in March 2019 as one of ten European CleanTech startups developing solutions for a more sustainable future. Total funding sits at €61 million ($69 million).

France’s HoloSolis

• Established in 2022, is developing a large-scale solar photovoltaic manufacturing facility in Sarreguemines-Hambach, France.
• In November 2025, EU-Startups reported that HoloSolis had secured more than €220 million in public and private financing. The company expects the facility to support European solar manufacturing and create jobs in the region. Total funding sits €220 million.

Germany’s Additive Drives

• Founded in Dresden in 2020 by Philipp Arnold, Axel Helm and Dr Jakob Jung, develops high-efficiency electric motors using a combination of additive manufacturing and conventional production technologies.
• In February 2026, EU-Startups covered Additive Drives’ €25 million financing to accelerate industrial scaling and international expansion.

The Innovation Fund

The broader Innovation Fund selection reflects the European Commission’s efforts to support technologies at different stages of commercial readiness. The programme includes 12 large-scale, 17 medium-scale, 20 small-scale, 12 CleanTech manufacturing and 16 pilot projects.

According to the Commission, the 77 selected projects could collectively avoid approximately 290 million tonnes of CO₂-equivalent emissions during their first ten years of operation. The programme is financed through revenues from the EU Emissions Trading System, which reinvests carbon market proceeds into low-carbon technologies.

The December 2025 call attracted 358 applications requesting €17.5 billion in funding, considerably exceeding the initially available budget of €2.9 billion.

However, selection does not yet constitute a final grant award. The 77 project promoters have been invited to prepare grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA), with final funding amounts and contractual arrangements expected to be confirmed in the first quarter of 2027.

Although the precise share of the €3.4 billion that will ultimately support startup-associated projects remains unclear, our findings highlight the involvement of emerging technology companies in Europe’s industrial transition.

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