Encouraging Investments in the Field of Alternative Fuels for Transportation
The Israel Innovation Authority is participating in the national plan to reduce global dependence on the use of petroleum for transportation and to address the real need for the development of economically efficient and cleaner alternatives than oil and its products.
The incentive program offers favorable conditions to investors, as well as assistance to technology companies in order to advance the field of petroleum substitutes in Israel and to expand the pool of funding sources available in the field for Israeli companies.
Goal of the incentive program:
To encourage strategically-minded investors in Israel and abroad to finance Israeli companies engaged in the development and implementation of technologies in the field of alternative fuels for transportation, such as electric vehicle batteries, fuel cells, biofuels, synthetic fuels and more. The overall goals of this incentive program are to reduce global dependence on petroleum as an energy source for transportation and to promote the development of Israeli hi-tech in this field.
Who is the incentive program for?
- Israeli technology companies engaged in the field of oil substitutes for transportation.
- Israeli or foreign investors who wish to invest in Israeli companies engaged in the field of oil substitutes for transportation.
What do you get?
Companies supported by this incentive program will receive:
- Financial assistance in the form of a loan, matching up to 50% of the total amount invested by private investors.
- A loan for the investment in the company – from NIS 750,000 (against NIS 1.5 million invested by private investors) up to NIS 12 million shekels (against NIS 24 million invested by private investors).
- The maximum aggregate loan amount is NIS 30 million (against NIS 60 million invested by private investors), which can be obtained by the company during its participation in the incentive program (until 2020).
- The companies will be obliged to repay the received funding via royalty payments only if the investors did not exercise the loan repayment option in exchange for additional shares in the company, and only if the project results in sales.
- The companies will be able to receive the incentive program’s support together with the support of other programs offered by the Innovation Authority.
- The investors participating in this incentive program will receive:
- An option allowing them to receive additional shares in the company under the conditions of the original investment, in exchange for the repayment of the full loan amount to the Authority instead of the company.
- Substantial government participation in the risk involved in the funding of research, development and application of innovative technologies in the field of alternative fuels for transportation.
Why should you apply for this incentive program?
- Significant budgetary support concurrent with private investment: The Authority transfers its funding to the company simultaneously with the investment by a private investor, providing a large initial pool of capital.
- Not only R&D funding: The transferred funds can be used for the support of various company activities, including business development and market penetration, and not only for R&D tasks.
- Repayment in the volume of the received support: The maximum repayment to the Authority will not exceed the amount of the support (including LIBOR linkage) received by the company, as long as its activities are focused in the area of alternative fuels for transportation.
How to apply?
- The application should be submitted by the company and the investor together.
- Prior to application, please carefully read the complete list of conditions, which specifies the rights and obligations of the applying company, as detailed on the Authority’s website.
- Fill out the application form available on the website and send to the email address listed in the forms.
For additional information, please contact:
Further information on the Israel Innovation Authority website: Encouragement of Investments in the Field of Alternative Fuels for Transportation