INGETEAM ENERGY CONVERSION RDI

Promoter – Financial Intermediary

INGETEAM SA

Location

• Spain

Description

The project consists of the Promoter's planned activities in Research, Development and Innovation (RDI) for the period 2023-2024 aiming at maturing technologies and developing new products in the field of: (i) electrical machines, (ii) low- and medium-voltage power electronics, (iii) automation, control, and protection solutions, (iv) submersible hydraulic machines, as well as (v) development of product and analysis technologies for maintenance services carried out in Spain over the period 2023-24.

Additionality and Impact

The Project is in line with the Research, Development, and Innovation (RDI) objective of InvestEU. The relevant investments will be in the field of technologies for energy generation from renewable sources, electrical storage, smart grids, power transmission and electronics that are in line with the Bank's IDHC (Innovation, Digital and Human Capital) public policy goal. It supports RDI activities that generate significant positive knowledge, technology, and environmental externalities, through the creation of innovative products as well as services and skills development and upgrading. The Project is therefore eligible under Article 309 point (c) Common interest and a minor part of it under Article 309, point (a) Projects for developing less-developed regions. Part of the Project contributes to the Bank's Climate Action and Environmental Sustainability (CA&ES) cross-cutting objective. 

The financing addresses market failures of imperfect competition, as it contributes to expanding the competitive space for new product technologies, and the failure in financial markets for RDI, arising from higher cost of financing due to the inherent uncertainty of the RDI outcomes.

The Promoter's RDI investments are essential to strengthen its long-term competitiveness, by ensuring the development and market introduction of an innovative range of new products and solutions, thus creating the conditions for a long-term growth of revenues and profitability. The Promoter is expected to implement a sound and sustainable Project thanks to its proven operational capacity.

The EIB loan will enhance credit conditions for Ingeteam with a flexible, long-term financing solution and will provide a strong signalling effect on the quality of the Project, facilitating the participation of other financiers. The Bank is expected to provide the Company with a longer maturity than that available in the market.

The Project in its proposed scope could not have been carried out (or not to the same extent) without InvestEU support.

Objectives

The project concerns the Promoter's investments in Research, Development, and Innovation (RDI) in the filed electronics for renewable power generation, electrical storage, smart grids, green hydrogen, power transmission and electromobility, carried out primarily in the Promoter's R&D centre located in the technology park of Zamudio (Bilbao, Spain) over the period 2023-2024. The project aims at developing solutions to support the energy transition for a more sustainable energy generation, transmission, distribution and consumption.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 46 million

Total cost (Approximate amount)

EUR 92 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 be verified during the project appraisal.

Procurement

The Promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.

Status

Signed - 14/12/2023