Funding for SMEs Innovating in Biofertilizers and Biostimulants Sector

The focus of this initiative includes Ecosystem Mapping and Analysis, Cascade Funding or FSTP – Financial Support to Third Parties, Implementation of Investment Cases, Optimization and Capacity Building, and Market Uptake and Interregional Cooperation. These elements collectively aim to enhance regional leadership in biofertilizers, support the transition from chemical to biofertilizers, and foster cooperation to maximize impact.

This project runs from September 2024 to August 2027 and is driven by a consortium of partners from several European countries. It aims to accelerate innovation investments by scaling up biofertilizer production and commercialization. It targets the advancement of a circular economy in agriculture, through creating financial and advisory support to at least 30 startups and SMEs. These supported entities will receive both financial backing and access to technical, business, and innovation advisory services to surmount market and technical challenges.

The initiative is structured into two main strands: the first focuses on tools and services that support the deployment of existing biofertilizer investment cases, while the second strand encourages open innovation and scaling up of new biofertilizer products and solutions. The supported activities range from improving soil fertility and crop productivity using organic fertilizers to developing novel bio-based products like biostimulants and microbial biofertilizers.

Applicants must be SMEs or startups legally established within specified eligible regions in Europe and meet defined financial and language criteria. The project funds selected proposals via lump sum payments, with an upfront 50% on contract signing and the remaining 50% upon project completion and successful reporting. Projects must ensure rigorous monitoring and reporting, including progress and final reports detailing milestones achieved and impacts realized.

Eligible costs and expenses must be incurred only during the project duration, from the grant agreement signing to the project end. These include direct staff costs (no limitations), external expertise or subcontracting costs (up to 30% of the total project budget), travel costs (up to 10% of the total project budget), and consumables (no limitations). Equipment costs are not eligible.

The funding is provided as a lump sum payment in Euros (€). An initial payment of 50% is made upfront upon contract signing, while the remaining 50% will be paid upon project completion, following submission and approval of a technical report assessing the budget use against achieved results. The technical report must be submitted up to one month after the project end date.

Beneficiaries have obligations to maintain records and documentation for five years after the final payment, provide expense records for audits or reviews, keep original or authorized digital documents, and comply with all terms and conditions to receive funding. They are also required to fulfill all dissemination and communication obligations outlined in the guidelines.

Project progress reporting is mandatory for projects with funding equal to or exceeding €20,000. Participants must submit a progress report at the midpoint of the project (e.g., month 6 for a 12-month project), describing actions, achievements, cooperation with the consortium, and progress toward milestones. After project completion, a final report detailing results must be submitted within one month, and failure to submit this report will result in non-payment of the final grant installment.

For Strand 1 projects, maximum grant amounts per proposal/challenge vary and are detailed in the call documentation. For Strand 2 projects, the maximum grant per SME is €60,000, with collaborative projects having a maximum total of €120,000 regardless of the number of SMEs involved. The project duration is a maximum of 12 months from the agreement signature.

Applications must be submitted entirely in English and use the specified application template with a maximum of 15 pages. Only one application per SME is permitted, either as a single applicant or consortium leader/partner, with the most recent application considered if multiple are submitted.

Ethical conduct, confidentiality, intellectual property considerations, and dissemination of results are integral parts of the scheme, ensuring fair evaluation and broad knowledge sharing. Gender equality is encouraged but not mandatory. This funding scheme presents a valuable opportunity for innovative companies focused on sustainable and circular agriculture to scale their solutions and collaborate interregionally for greater impact.

For more information, visit EC.