PUNCH SUSTAINABLE POWERTRAIN SOLUTIONS

Promoter – Financial Intermediary

PUNCH POWERGLIDE STRASBOURG SAS,PUNCH TORINO SPA

Location

• Italy
• France

Description

The project concerns the promoter's investments for research, development, and innovation (RDI) activities in the field of sustainable driveline and powertrain solutions for the period 2022-2025. The investments will be carried out at the company's facilities in Italy and France.

Additionality and Impact

The project concerns the promoter's investments for the development of technologies and products in the areas of Hydrogen powertrains and power generation, Powertrain Electrification, Electronic Controls for mobility and other applications, and Urban Mobility, which will contribute to strengthen the sustainability and competitiveness of the company, an innovative midcap. The developments will bring about positive environmental externalities, they will support the further accumulation and diffusion of knowledge and workforce upskilling and training. The project contribute to the Bank's "Innovation, Digital and Human Capital" policy objective, partly to the EIB Economic and Social Cohesion policy objective and the EIB Climate Action and Environmental Sustainability policy objective. 

EIB financing supports the promoter's investments addressing the market failures and gaps associated with imperfect competition (hydrogen and electric based motive technologies) and those associated with projects with positive knowledge and environmental externalities generation.

The promoter's R&D capability, its focus on R&D, its technology edge in this hydrogen niche area, and strong ecosystem of partners, along with its experienced management will help implement a sound and sustainable project, integrating positive environmental and social dimensions, contribute to address and mitigate market failures, and through its additionality, contribute to the Bank's policy objectives.

The proposed EIB loan satisfactorily meets the required funding needs of the promoter as it provides for the necessary flexibility in terms of long tenor and repayment profile, together with a sizeable financing volume. Furthermore, the EIB's involvement in the financing is expected to send a signalling effect to other potential lenders by also providing a quality stamp on the promoter's activity. 

The Bank's technical contribution and advice is explained by the guidance provided to align the project scope with policy objectives at project origination.

Objectives

The primary objective is to develop innovative technologies related to hydrogen powertrains and power generation, including powertrain electrification, mobility electronic controls and other applications, as well as urban mobility. The project is expected to contribute to the decarbonisation of the transport sector through the introduction of hydrogen powertrain systems, electrification technologies and future mobility solutions.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 40 million

Total cost (Approximate amount)

EUR 95 million

Environmental aspects

The project consists of RDI activities that are not listed in any of the annexes of the environmental impact assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU. The environmental details will however be verified during the project appraisal. The outcomes of the project are expected to contribute to the decarbonisation and reduction of pollution of the transport sector, and the project has, therefore, a strong contribution to climate mitigation and to environmental sustainability.

Procurement

The promoter is a private company not operating in the utilities sector and not having the status of a contracting entity, and thus is not subject to EU rules on public procurement. Under these conditions, the procurement procedures followed by the Promoter are suitable for the project.

Status

Signed - 28/12/2022