SITCE - Economia Circular

The main goal of this opportunity is to support the transition to a circular economy, with a special focus on improving water circularity within companies. It aims to help businesses in the Algarve region adopt efficient water reuse practices, such as recycling wastewater for washing, sanitation, and irrigating green spaces. The initiative is designed to optimize resource use and promote sustainable water management in production processes. Projects related to golf course irrigation are not eligible. This grant is available only for projects located in the Algarve region of Portugal.

• Projects must support the transition to a circular economy and demonstrate no significant harm to environmental objectives.
• They should involve the creation of new establishments, capacity increases of at least 20%, diversification into new products, or major changes to production processes.
• Eligible applicants are small and medium-sized enterprises (SMEs), with the option for collaboration with research and innovation entities (ENESII) as co-promoters.
• Projects must be located in the Algarve region.
• Applicants must submit all required documentation and register on the Balcão dos Fundos platform.
• Projects must promote water circularity within companies, excluding golf course irrigation.

Examples:

• A food processing company installs a system to treat and reuse wastewater for washing equipment.
• A manufacturing firm upgrades its production line to use recycled water for sanitation, increasing its capacity by 25%.
• A hotel collaborates with a research institute to develop and implement an innovative water recycling system for irrigating gardens (excluding golf courses).

• Purchase of raw materials and consumables.
• Acquisition of components for pilot installations, prototypes, and demonstration facilities.
• Purchase of third-party services, such as technical or scientific assistance, consultancy, and use of innovation platforms.
• Acquisition of scientific equipment, technical instruments, and specialized software required for the project.
• Salaries and costs for personnel dedicated to research and development (R&D) activities.
• Acquisition of patents, licenses, and technology transfer rights.
• Certification costs for R&D management systems (e.g., NP 4457:2021).
• Auditor and accountant expenses for validating payment requests (up to €5,000).
• Studies or reports to ensure compliance with environmental principles (up to €15,000).
• Indirect costs calculated as 7% of eligible direct R&D costs.

Restrictions: Routine operational costs, maintenance, real estate purchases, acquisition of used goods, and export-related expenses are not eligible. Costs related to golf course irrigation are excluded.

• Total budget of the grant: €14,000,000
• Co-financing rate: Up to 60%
• Maximum project duration: 24 months
• Other financial details: The base funding rate is 20%, with possible increases based on company size, project location, and focus on water reuse, up to a maximum of 60%. Payment can be made as advances, reimbursements, or final payments, with specific caps on certain expenses (e.g., up to €5,000 for accountant/auditor, €15,000 for environmental compliance studies). A bonus of 5 percentage points may apply for exceeding result indicators, except for certain regulated operations.

• Applicants must be small or medium-sized enterprises (SMEs) or, for co-promotion, non-business entities in research and innovation (ENESII).
• In co-promotion projects, a company must be the lead entity, and collaboration with ENESII or other companies is required.
• Projects must be located in the Algarve region.
• Applicants must provide all necessary documentation, such as approvals for architectural projects (if needed), proof of facility use, and financial commitments.
• A self-assessment of compliance with environmental principles is required.
• Projects must promote water circularity in companies, excluding golf course irrigation.
• Applicants must register and submit proposals through the Balcão dos Fundos platform.
• Projects must achieve a minimum Merit of Project (MP) score of 3.00 based on strategy alignment, quality, execution capacity, and impact.