Note 7 Grants 1 Jan-31 Dec 22 1 Jan-31 Dec 21 Amounts in EUR thousand Income statement Deduction of carrying amount fixed assets Income statement Deduction of carrying amount fixed assets SkatteFUNN R&D tax incentive scheme 23 - 157 - Innovation Norway grants from the Norwegian Government 160 371 - 2 162 CO2 compensation from the Norwegian Government 2 141 - 1 945 - Enova SF owned by the Ministry of Climate and Environmental (MCE), Norway - - 45 - Staff training grant from the Belgian government 2 - - - Total Government grants 2 327 371 2 147 2 162 R&D grants from Miljøfondet - 904 - - SO2 allowance from Miljøfondet - - - 2 853 Grants from other than Government - 904 - 2 853 Total grants 2 327 1 275 2 147 5 016 SkatteFUNN R&D tax incentive scheme In 2022 23 kEUR is recognized as a reduction in tax expense, which comprises 110 kEUR in tax deductions received in relation to the development of new products, and an 87 kEUR reversal of excess funding recognized in 2021. Innovation Norway grants from the Norwegian Government 531 kEUR of funding was received for the development and demonstration of new furnace technology and gas cleaning expansion linked to the demonstration of new environmental technology for SiC production). Of this 160 kEUR was recognized in other operating expense, and 371 kEUR as a deduction in the carrying amount of fixed assets. CO2 Compensation The Norwegian government established a scheme for CO2 compensation for power intensive industries, with the purpose to counteract carbon leakage from Europe due to increased power prices as a result of the EU's climate quota system, and in this way prevent increased global emissions. The annual costs of CO2 compensation are directly linked to the quota price. The current CO2 compensation scheme is valid from 2021 to 2030, and the Norwegian Government is currently considering introducing a floor of 200NOK/ ton. The CO2 compensation scheme only applies for Fiven's Norwegian plants and is recognized where there is reasonable assurance that the entity will comply with the conditions attached and the grants will be received. 2 141 kEUR is recognized as a reduction in the income statement line Raw materials, energy cost and change in inventory for 2022 - compared to 1 945 kEUR in 2021. Miljøfondet grants to improve gas cleaning Research and development grants of 904 kEUR received from Miljøfondet (the Norwegian environmental fund) for gas cleaning of the furnace hall at the plant in Lillesand, Norway. Fiven Annual Report 2022 Financial statements 47
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