Sustainable business with the support of the German Federal Environment Foundation —an interview with Dr. Maximilian Hempel
Dr. Maximilian Hempel from the German Federal Environment Foundation explains the foundation's funding opportunities for sustainable projects and gives an insight into how to apply for funding.
“Our advisors are what makes the foundation unique. They see themselves as the applicants’ partners. ”
Dr. Maximilian Hempel has worked at the German Federal Environment Foundation for 18 years. He has been head of the “Environmental research and nature conservation” division since 2019. Among others he is responsible for “recirculation and efficient use of environmentally critical metals and mineral residual waste” and “nature conservation and sustainable use of nature in cultural landscapes and protected areas”.
It is not always easy for companies to unite sustainability and profitability. How does the German Federal Environment Foundation (DBU) assist businesses with this?
Maximilian Hempel: We are a foundation dedicated to finding solutions to environmental problems. We believe that this is only possible with an economically viable business business model. The narrative that ecology and economy do not go together is outdated. I don’t share this point of view. It just simply is not true when I look at how successful some environmental companies are.
What does DBU support for companies actually consist of?
Maximilian Hempel: We are a funding foundation with over two billion euros in capital. As a private foundation acting under public mandate, we have our own financial resources and are politically neutral. The DBU funds medium-sized businesses by awarding a non-repayable grant. We have learnt that the success of a project depends to a great extent on the commitment of partners involved ( i.e. how much of their own resources they put in and integrate into the project scope). This is why our participation in companies usually entails 50 per cent of the project costs.
Which project costs does the DBU take on?
Maximilian Hempel: The foundation provides a financially appealing proposal. Gross pay, material costs, third-party commissions, travel expenses and sometimes an overhead are all included in the calculation of project costs. The rule of thumb is: We add all the project costs together and draw a line underneath. We pay one half, the company pays the other.
Who is entitled to apply?
Maximilian Hempel: Our main target group are medium-sized companies with great innovative and environmentally friendly project ideas. We also support cooperations with research institutes and associations or between companies. Itis plausible, for example, for companies all along the supply chain to initiate an innovative project. That said, we do not fund any investment projects orbasic research.
So innovations with a practical implementation are first and foremost?
Maximilian Hempel: Yes, there must always be an implementation aspect. As long as the foundation has existed, almost 30 years, the three main criteria have never changed: innovative, exemplary, and beneficial to environmental conservation. “Exemplary” means that the innovation has to work at multiple locations, not just in one single place of business or one company. These are the three criteria that always apply.
How important is it for a successful application to match, content-wise, one of the topics in the DBU funding guidelines?
Maximilian Hempel: The methodical aspects are not the decisive ones. Questions as to what contribution a project idea delivers to solving an environmental problem should be at the forefront. The development of a closed-loop system of business-related and non-business-related plastic waste would be classified under the funding topic “circular economy”. If a company has found a way to produce thermoplastics in an moreenergy-efficient manner,, then that be classified as an energy topic. But applicants should not let themselves be too directed by the topics in the funding guidelines. A significant amount of the funds, 20 per cent, is unrelated to the topic. The criteria I mentioned above—innovative, exemplary, and beneficial to environmental conservation—are more important than the content classification. If someone believes their idea meets these criteria, they should contact us. We will be happy to advise as to whether the project is suitable for an “open-topic” or thematic funding area.
With which programmes do you fund companies?
Maximilian Hempel: We have two funding instruments for companies: a fairly new Green Start-up special programmeand the classic project funding for businesses. The Green Start-up special programme is aimed at companies in the founding phase or at companies no older than five years. We offer extensive guidance and assistance during the entire project. We also provide them with coaching and mentoring. But we have offered s our classic project funding since the the beginning of the foundation Applicants usually are medium-sized companies or cooperation projects whose project run 12 to 36 months and thus receive a funding volume between 100,000 and 400,000 euro. We also integrate the beneficiaries into the DBU network. We have funded almost 10,000 projects over the last 30 years. This makes for an interesting national network.
For whom is the DBU support particularly interesting?
Maximilian Hempel: Our funding is appealing for any company that does not have its own research and development unit. But it is also promising for companies interested in implementing an innovation that goes beyond their usual area of activity. Let’s assume that a company has an exciting idea for environmental conservation and has already made one or two attempts at it. The idea is viable, but management realises that funding for testing and implementationare lacking. This type of project would be suitable for our funding instruments.
You already emphasised that the DBU funds cooperation projects. Does the DBU also support companies in finding a project partner?
Maximilian Hempel: Although this is not one of our usual tasks, it is sometimes possible. We first recommend that companies look in their own regional networks. The universities and technical colleges in the region could, for example, be good cooperation partners.
Some companies are put off by the scope of the application and do not apply for funding. How complicated is the DBU application process?
Maximilian Hempel: The easiest thing to do is to call us, explain the project idea briefly and receive an initial evaluation. The colleagues responsible for each topic are easy to find on our website.
So companies are advised on the telephone as to whether or not their project idea could be successful?
Maximilian Hempel: Yes, our advisors are what makes the foundation unique. They see themselves as the companies’ partners and advise them accordingly. Direct communication with the applicant does not always take place at other funding institutions. Our approach is the opposite: We recommend to contact us and outline the project idea. We can then give initial information as to whether it makes sense to apply for the funding or what challenges have to be solved first. This is a very helpful offer from the foundation’s side. The consultation increases the chances of receiving funding later.
What is the next step after the telephone call?
Maximilian Hempel:The next step is to submit an outline. In our experience, small and medium-sized companies sometimes struggle with the application. So the idea should be summarised in the outline in only three to five pages. The minimum requirements for this are on our homepage. We use the outline as the basis for our assessment and provide feedback within a few weeks. If we evaluate it positively, the project application is the next step. That is indeed somewhat extensive, but the chance of the DBU granting the funding at the end is then very high.
What are an application’s chances of success?
Maximilian Hempel: The chances are very good. Around a third of submitted outlines lead to funding. Chances even rise if a positive outline evaluation.At the last step, application after a positively evaluated outline, the chances are even better.
Have project ideas from Brandenburg on sustainability won over the DBU in the last years?
Maximilian Hempel: An innovation which I find very impressive comes from WP Systems GmbH in Ruhland. I visited the project myself around six months ago. It is a relatively young company that we have been funding since July 2018 with the project “Machines for the environmentally friendly demolition of wind farm concrete towers”. We have around 30,000 wind turbines in Germany and the majority of them are now too old. The question of repowering comes up, i.e. whether bigger plants should be installed at the locations. Thereforee the old concrete towers have to be taken down Out of the 30,000 turbines, 8,000 of them are mounted on a prestressed concrete tower, for which no sound demolition technology exists. WP Systems are developing a technology to close this gap.. The project will run until next summer. We hope that by then they will be at the point where prestressed concrete towers can be demolished in an efficient, environmentally friendly and, most importantly, quick way. And so we come back to the paradox that I do not believe exists: the the alleged incompatibility between ecology and economy. This project is all about an environmentally friendly method with economic advantages.
Do you have another example from another field?
Maximilian Hempel: We have just approved an interesting project from IGV GmbH in Brandenburg. In Bergholz-Rehbrücke they are developing a plasma prospecting method for bioactive substances from microalgae. Many applications pin their hopes on algae. They grow extremely fast, much faster than plants. This means that they could contribute significantly to food security and the production of biopolymers. The main problem is to access the components of the microalgae. We have been supporting the Institute for crop processing in this regard since 1st of May this year with around 400,000 euros in funding.
What advice would you give a company that is still hesitating to make a project application?
Maximilian Hempel: Just pick up the phone. Many companies are surprised by this option. You will get fast feedback from us as to whether we can provide support or whether you might be better off with another funding provider. We have an excellent technical understanding of many subjects. We know what similar projects are currently being implemented and what the state of the art is.
The interview was conducted by Simon Behnisch/Sunbeam Communications on behalf of the campaign “Sustainable today in Brandenburg”.