Innovation Norway Environmental Technology Scheme

Program Overview

Innovation Norway’s Environmental Technology Scheme (Miljøteknologiordningen) accelerates the commercialization of Norwegian cleantech solutions that deliver measurable environmental benefits. The scheme offers non-dilutive grants of up to NOK 15 million to companies that are ready to pilot, demonstrate, or scale technologies addressing climate change, circular economy, pollution control, sustainable aquaculture, maritime decarbonization, and nature protection. Projects can take place in Norway or abroad, but they must strengthen Norwegian value creation, exports, and green job growth. Alongside funding, Innovation Norway provides advisory support, investor introductions, and access to its global office network to help companies secure partners and customers.

The scheme is designed for technologies that have moved beyond laboratory research and require real-world validation—such as building a first-of-its-kind plant, installing a pilot system with a customer, or performing large-scale testing to meet certification standards. Applicants must demonstrate significant environmental impact compared with the status quo, a clear commercialization plan, and the ability to co-finance the project. By helping companies cross the valley of death between prototype and market entry, Innovation Norway aims to position Norway as a leader in sustainable industries.

Strategic Fit with Norway’s Green Transition

Norway has ambitious climate and sustainability policies, including a commitment to cut greenhouse gas emissions by 55% by 2030 and reach climate neutrality by 2050. The Environmental Technology Scheme complements initiatives such as Enova, the Green Platform Initiative, and the EU’s Innovation Fund by focusing specifically on private-sector deployment of Norwegian technologies. Projects that align with national strategies—like the Climate Action Plan, Circular Economy Strategy, Green Shipping Programme, and Sustainable Aquaculture Roadmap—receive priority consideration. Companies should articulate how their solution supports these policy goals and contributes to regional development, especially in areas transitioning from petroleum-related industries to new green value chains.

Funding Model and Eligible Costs

Grants typically cover 25% to 45% of eligible project costs depending on company size, project risk, and expected environmental benefit. Small and medium-sized enterprises (SMEs) may receive higher support percentages than large enterprises, consistent with EEA state aid rules. Eligible expenses include:

• Salaries and social costs for personnel directly involved in the project.
• Engineering, design, and technical consulting services.
• Purchase, leasing, or modification of equipment required for pilot installations.
• Construction or installation costs for demonstration facilities.
• Certification, testing, and verification conducted by accredited bodies.
• Market development activities tied to the demonstration (e.g., customer pilots, internationalization efforts).
• Project management, quality assurance, and reporting.

Ineligible expenses include routine operating costs, basic research, and investments unrelated to the environmental technology. Applicants must document co-financing sources such as equity, loans, or public co-funding. Innovation Norway disburses grants in installments after verified progress, so companies should ensure sufficient liquidity to cover upfront costs.

Eligibility Criteria

To qualify, applicants must:

1. Be registered in Norway and operate a commercial enterprise (aksjeselskap, ansvarlig selskap, etc.).
2. Demonstrate ownership or licensing rights to the technology being deployed.
3. Present measurable environmental effects—such as emissions reductions, energy efficiency gains, resource recovery, or reduced pollutants—supported by data, simulations, or third-party analyses.
4. Provide a credible commercialization plan showing how the project leads to market-ready products or services, including export potential.
5. Show financial health and the ability to contribute required co-financing.

Collaboration with research institutions, suppliers, municipalities, or customers is encouraged, especially when it enables pilot testing under real conditions. Projects involving sensitive ecosystems or communities must secure relevant permits and conduct stakeholder engagement to maintain social license.

Application Timeline and Process

Applications for 2025 must be submitted by September 9 through Innovation Norway’s digital portal. The process typically includes:

1. Pre-Application Consultation: Meet with an Innovation Norway advisor to validate eligibility, align expectations, and discuss funding mix (e.g., combination with loans or guarantees).
2. Digital Submission: Provide company information, project description, environmental impact analysis, work plan, budget, and financing plan. Attach supporting documents such as feasibility studies, letters of intent from customers, and lifecycle assessments.
3. Evaluation: Sector experts assess innovation level, environmental benefit, profitability, implementation capacity, and scalability. They also verify compliance with state aid regulations and consider whether the project supports Norwegian exports.
4. Decision and Contracting: Approved applicants receive a grant offer specifying milestones, reporting requirements, and disbursement schedules. Contracts include clauses for clawbacks if milestones are missed or project scope changes significantly.
5. Follow-Up: Innovation Norway monitors progress through regular reports, site visits, and financial audits. Companies may receive advisory services on internationalization, IP strategy, or investor relations during implementation.

Crafting a Compelling Value Proposition

Successful proposals clearly articulate the environmental problem, the technology’s differentiators, and market demand. Consider addressing:

• Environmental Impact: Present baseline metrics and projected improvements using recognized methodologies (GHG Protocol, ISO 14064). Quantify CO₂ reductions per unit, energy savings, waste diverted, or biodiversity benefits.
• Innovation and Competitiveness: Describe unique features, patents, or proprietary processes. Benchmark against competitors, highlighting efficiency gains, lower operational costs, or superior performance.
• Customer Validation: Provide letters of intent, pilot agreements, or contracts with launch customers. Explain how feedback loops from these partners will accelerate commercialization.
• Business Model and Revenue Streams: Outline pricing, sales channels, service agreements, and recurring revenue opportunities. Demonstrate how the project leads to profitable scaling.
• Export Potential: Map target international markets, regulatory requirements, and partnerships. Highlight participation in EU programs, trade fairs, or international clusters.

Project Planning, Milestones, and Risk Management

Develop a robust implementation plan with clear phases, responsibilities, and timelines. Include:

• Gantt chart outlining engineering, procurement, installation, commissioning, and validation phases.
• Key performance indicators (KPIs) for technical success (e.g., efficiency, uptime, emissions intensity) and business outcomes (e.g., pilot conversions, revenue milestones).
• Health, safety, and environmental (HSE) management plans addressing onsite operations and potential hazards.
• Risk register covering technical uncertainties, supply chain disruptions, regulatory approvals, and market adoption. Provide mitigation strategies such as redundancy, insurance, or contingency budgets.

Financial Plan and Co-Funding Strategy

Innovation Norway scrutinizes budgets to ensure prudent use of public funds. Prepare detailed spreadsheets that align expenses with milestones and funding sources. Example allocation:

Ensure co-financing sources are documented through bank statements, investor commitments, or loan approvals. Projects often combine the grant with loans from Innovation Norway, Enova support, or private investment to cover remaining costs.

Measuring and Reporting Environmental Outcomes

Plan for rigorous monitoring that proves environmental benefits. Methods may include continuous emissions monitoring systems, energy metering, lifecycle assessments, and third-party verification. Align reporting with frameworks relevant to customers or investors (EU Taxonomy, Science Based Targets initiative, ESG reporting standards). Describe how data will be collected, analyzed, and shared with Innovation Norway and stakeholders. Demonstrating transparent, verifiable results strengthens credibility and aids future fundraising.

ESG, Compliance, and Social Responsibility

While environmental performance is core, Innovation Norway also expects strong social and governance practices. Address:

• Workforce development, including apprenticeships, diversity initiatives, and collaboration with vocational training providers.
• Ethical sourcing policies and supplier audits, particularly for critical raw materials.
• Stakeholder engagement plans with municipalities, indigenous communities (Sami), or NGOs when projects affect local environments.
• Data security and cybersecurity protocols for digital solutions.
• Governance structures ensuring board oversight, internal controls, and compliance with anti-corruption legislation.

Communication, Branding, and Market Scaling

Prepare a communication plan that showcases milestones to investors, customers, and the public. Strategies may include demonstration days, participation in industry conferences (e.g., ONS, Nor-Shipping, Aqua Nor), press releases, and social media storytelling. Outline scaling plans for manufacturing, service delivery, and customer support, including partnerships with OEMs, shipyards, utilities, or municipalities. Consider how Innovation Norway’s international offices—in markets such as Germany, the United States, and Singapore—can support market entry and customer acquisition.

Application Checklist

Before submitting, ensure the following documents are complete:

1. Executive summary describing the technology, environmental impact, and commercialization trajectory.
2. Detailed project description with technical specifications, process flow diagrams, and innovation claims.
3. Environmental impact assessment with quantified metrics and measurement methodologies.
4. Market analysis, customer validation letters, and export strategy.
5. Project plan, milestone schedule, and risk management matrix.
6. Comprehensive budget, financing plan, and evidence of co-funding.
7. Company financial statements, ownership structure, and governance information.
8. HSE and ESG policies, permits, and compliance documentation.
9. Intellectual property documentation (patents, licenses, freedom-to-operate analyses).

Maximizing Support After Approval

Winning the grant unlocks additional opportunities. Engage with Innovation Norway advisors to explore:

• Complementary financing instruments such as loans, guarantees, or equity investments.
• Participation in international delegations, trade missions, or EU partnership programs.
• Access to cluster networks like NCE Maritime CleanTech, NCE Aquaculture, or Norwegian Energy Partners (NORWEP).
• Storytelling resources that showcase your project as part of Norway’s green transition.

By delivering robust environmental impact, sound business models, and export-ready technologies, Norwegian companies can leverage the Environmental Technology Scheme to accelerate commercialization and position themselves at the forefront of the global green economy.

Insider Tips to Win Innovation Norway Environmental Technology Scheme

• Quantify climate impact. Deliver emissions abatement models compatible with Innovation Norway’s reporting tools.
• Secure pilot customers. Provide letters from Norwegian industry partners ready to adopt the technology.
• Plan for commercialization abroad. Outline how support will help you enter EU or North American markets.