20 Startups Just Took a Slice of Europe's $3.7 Billion Net-Zero Pie

Jan de Vries · 2026-10-20

When most people picture a massive government funding round, they imagine the usual suspects: giant steelmakers, utility conglomerates, well-established industrial names. But something interesting happened in the European Commission's latest selection of net-zero technology projects. Of the 77 projects picked for a share of roughly $3.7 billion in Innovation Fund support, 20 trace back to startups, scaleups, and younger tech ventures. That's about 26% of the total. Not a landslide, sure. But for early-stage companies trying to crack industrial decarbonization, it's a signal worth paying attention to. ### What the latest selection actually covers The announcement came on October 19, 2026, and spans projects across 23 countries in the European Economic Area. The categories range widely: clean energy, industrial manufacturing, carbon removal, sustainable fuels, and critical raw materials. Established industrial groups still dominate the list overall. Yet the startup presence cuts across all five funding categories, from sprawling industrial builds down to smaller demonstrations and manufacturing facilities. In other words, this isn't a token gesture. Younger companies are showing up everywhere. ### The big bets: aircraft and low-carbon steel Among the 12 large-scale projects, two startups stand out. **Vaeridion**, based in Munich, is building the Microliner, a fully battery-electric regional aircraft designed to carry nine passengers. Founded in 2021, the company's CAROLUS project aims to push the plane toward certification, industrial production, and commercial operation in Germany, with a target range of about 250 miles. The company previously raised a roughly $15 million Series A, bringing total funding to around $18.5 million. **GravitHy**, founded in France in 2022, wants to decarbonize steel. Instead of coal-based processes, it produces low-carbon iron using hydrogen. Its Fos-sur-Mer project plans a facility capable of producing two million tonnes (roughly 2.2 million tons) of hot briquetted iron each year, which steelmakers can feed into lower-emission production. The company raised about $65 million in early 2025 to cover engineering, permitting, hiring, and prep work for its flagship plant. A third large-scale startup, Spain's **Greenertis**, rounds out that tier. ### Turning waste into chemistry and materials The medium-scale category includes five startup-associated projects, and four of those companies have been on the radar before. - **ChainCraft** (Netherlands, founded 2010) spins out of Wageningen University and uses fermentation to turn organic waste into fatty acids. These replace fossil-derived or palm oil ingredients in everything from animal feed to lubricants and coatings. Total funding sits around $20 million. - **traceless materials** (Germany, founded 2020) makes natural polymer materials from agricultural residues as an alternative to conventional plastics. It has raised roughly $42 million, including a $40 million round that helped build its first industrial facility in Hamburg, which opened in 2026. - **H2SITE** (Spain, founded 2021) develops membrane reactor technology that separates hydrogen from gas streams and carriers like ammonia. It previously raised a $39 million Series. > Here's the pattern worth noticing: these aren't moonshot ideas sitting in a lab. They're companies with facilities, revenue paths, and real industrial partners. ### Why this matters beyond Europe For anyone tracking the EU Inc proposal and the broader push to make European incorporation and funding smoother, this list is a useful reality check. The money is flowing toward younger ventures, but the barriers remain steep. Certification timelines, permitting, and capital intensity mean startups still need patient backers and a regulatory environment that doesn't punish ambition. If the EU Inc framework eventually simplifies cross-border incorporation, stories like these could become far more common. For now, 20 out of 77 is a quiet but meaningful vote of confidence in Europe's emerging industrial tech scene. ### The takeaway The headline number is the billions. The real story is who's getting them. Startups are no longer just spectators in Europe's decarbonization push. They're building the planes, the steel, and the chemistry behind it. Keep an eye on these names. The next few years will tell us whether this funding turns into commercial traction or stalls at the pilot stage.