Funding under the KfW Energy Efficiency Program – Production Facilities/Processes
Effective promotional loan to improve energy efficiency in production facilities and processes for companies. Loan amounts up to €25 million, terms up to 20 years.
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Grant criteria
Funding objective
Promotion of measures for energy efficiency and greenhouse gas reduction in the area of production facilities and processes of commercial enterprises domestically and abroad.
Eligible expenses
- Investment costs for equipment and process technology
- Costs for compressed air, vacuum, and extraction systems
- Electric drives and pumps
- Process cooling and refrigeration technology
- Heat recovery and waste heat utilization
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Eligible to apply
- Companies
Funding requirements
- Commercial enterprises or self-employed professionals
- New investments or modernizations in the area of production facilities/processes
- Greenhouse gas reduction of at least 15%
- Application submission before the start of the project
Documents required for application
- Commercial confirmation for the application (gBzA)
- De-minimis declaration
- Simplified SME self-declaration or SME self-declaration with SME definition information sheet
Evaluation criteria
- Economic conditions and quality of collateral (price category)
- Transformation plan for investments
Description
The KfW Energy Efficiency Program – Production Facilities/Processes enables companies and self-employed professionals nationwide to finance new investments and modernizations aimed at increasing the energy efficiency of industrial manufacturing sites. With loan amounts of up to €25 million and terms of up to 20 years, investment costs for process and plant technology—such as compressed air, vacuum, and extraction systems, electric drives, pumps, cooling technology, as well as heat recovery and waste heat utilization systems—can be almost fully covered. Measures for CO₂ capture, hydrogen utilization systems, and data-driven solutions to reduce greenhouse gas emissions are also eligible expenses. Approval requires a greenhouse gas reduction of at least 15% compared to a reference consumption and the submission of the application prior to the start of the project. Conditions are determined based on the economic situation and the quality of collateral, with loan disbursement covering 100% of investment costs and the possibility of a grace period without repayments.
Eligible recipients are commercial enterprises with private-law ownership, subsidiaries within the EU, and joint ventures with a German majority stake. Applicants must submit, in addition to the commercial confirmation of the application (gBzA), a “De-minimis” declaration and a self-declaration regarding SME status. A mandatory transformation plan supports the planned decarbonization of large projects. Since the program is offered continuously, the funding loan can be applied for flexibly in terms of timing. The KfW Banking Group, one of the world’s leading development banks, administers the loan on behalf of the Federal Ministry for Economic Affairs and Energy and supports interested parties through qualified local advisory partners. Competitive interest rates and repayment in uniform quarterly installments provide planning security for long-term investments in climate-friendly production technologies.
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