NACAG is offering financial support for the reduction of nitrous oxide emissions from nitric acid plants located in countries which are eligible for Official Development Assistance (ODA). Both already existing N2O abatement projects and completely new projects can be supported. NACAG provides financial support to individual nitric acid plant operators for their abatement activities on the condition that the country in which the plant is located is committed to sustaining the emission abatement after 2023. This commitment should take the form of a formal Statement of Undertaking by the government. In that statement of undertaking, the government commits to ensuring that from January 2024, all nitric acid production installations located in the country will be equipped with state-of-the-art technology to remove N2O emissions from their production cycles.
NACAG is supporting new abatement projects by covering up to 100% of the costs associated with the purchase, installation, and maintenance of the abatement and monitoring technology. Nitric acid plant operators from eligible countries can apply for financial support, which effectively takes the form of grants. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is the executive institution of this funding stream and acts as the grant managing and contracting authority.
The Grant Application Programme is open. The Grant Application Notice can be downloaded here. Eligible grant applications qualify for due diligence assessment as well as intervention advice. In the framework of the due diligence assessment, GIZ will evaluate the technical, legal, financial and operational capacity of applicants as well as the existence of environmental, social, health and gender safeguards and sufficient policy guarantees. In case of a positive outcome of the due diligence assessment, GIZ will adopt a grant award decision and issue a grant agreement for signature to the plant operator.
The activities eligible for funding from the NACAG Support Facility are the following:
- Purchase, shipping, installation and maintenance of a technical device or technology that either removes N2O (i) through the installation of a secondary N2O destruction catalyst in the oxidation reactor (“secondary abatement”), or (ii) from the tail gas through either thermal or catalytic decomposition (“tertiary abatement”);
- Purchase, shipping, installation and maintenance of monitoring equipment;
- Annualized gross staff costs for environmental management.
Upon signature of the grant agreement, plant operators will select specific abatement technology by means of competitive tendering. The NACAG Secretariat is ready to provide advisory services concerning the selection of the technology. From the outset, it is technology-neutral and supports the technology that is most appropriate under the specific technical and economic circumstances of each individual nitric acid production facility.
In order to be eligible for financial support from the NACAG Support Facility, plant operators have to fill in and sign the Grant Application Notice. The notice includes information on eligibility criteria and the application procedure. In addition, its annexes contain the actual application form, the Declaration of Honor and the Declaration on Climatic Benefits.