KfW starts new promotional programme for commercial companies to foster avoidance or utilisation of waste energy

• New offer “KfW Energy Efficiency Programme – Waste Heat” promoted by the German Federal Ministry for Economic Affairs and Energy (BMWi)
• KfW supports BMWi’s “Efficiency first” initiative to improve energy efficiency

With a new offer to finance investment in the avoidance or utilisation of waste heat in companies, KfW is supporting the “Efficiency first” (“Deutschland macht’s effizient”) initiative of the German Federal Ministry for Economic Affairs and Energy (BMWi) to improve energy efficiency in Germany. The new promotional programme offers commercial companies of all sizes and in all sectors subsidised loans and repayment bonuses.

The programme promotes investment in the modernisation, expansion or new construction of facilities if they avoid the generation of waste heat or make efficient use of previously unused waste heat. Companies in trade and industry that are majority-owned by private shareholders are eligible to apply, regardless of their turnover. Up to 100% of the eligible investment costs can be financed from the programme. A repayment bonus of up to 30% is granted for the internal avoidance and utilisation of waste heat. The bonus for utilising waste heat outside the company amounts to a maximum of 40%. An additional bonus of 10% is granted to small and medium-sized enterprises.

The maximum loan amount is generally EUR 25 million, with a maximum term of 20 years. The nominal and effective interest rate is currently at 1.0% .a. in the best price category and can be fixed for up to 20 years. Promotion is subject to the presentation of a waste heat concept prepared by an expert, which is to be submitted together with the application.

The KfW Executive Board member responsible for domestic promotion, Dr Ingrid Hengster, said: “Germany must significantly reduce its demand for heat if it wants to reach its climate targets and successfully complete its energy transition. Industry has a pivotal role to play in this regard, because two thirds of the energy it consumes goes towards the generation of process heat that could be avoided or used efficiently. KfW’s waste heat energy efficiency programme – promoted by the Federal Ministry for Economic Affairs and Energy – uses extraordinarily attractive conditions to offer a strong incentive for companies to avoid generating waste heat or to use it productively.”

More information on the programme (in German only) is available at
KfW-Energieeffizienzprogramm-Abwärme

and on BMWi’s “Effiency First” initiative at
www.machts-effizient.de