Estonian company GaltTec OÜ has been selected for funding under the second open call of the European circular economy development programme Up2Circ. Their large-scale project Material Recycle received a grant of €50,000 and was among just 12 large projects selected from a total of 434 applications. The funded projects aim to accelerate the shift towards environmentally sustainable production and offer innovative solutions to improve resource efficiency.
GaltTec’s project focuses on the recycling of solvent residues and other production waste in the manufacturing of solid oxide fuel cells. The company’s goal is to establish a semi-closed loop system that enables up to 90% of materials used in production to be reused, significantly reducing both waste and the need for new input materials.
The Up2Circ programme, through which the funding was awarded, is specifically designed for small and medium-sized enterprises aiming to adopt more sustainable practices. To be eligible, applicants were required to complete an online circular economy training course and undergo an in-depth sustainability assessment in collaboration with a programme advisor. In Estonia, the programme is coordinated by Tartu Science Park, with Henri Hanson serving as the national project lead and advisor.
According to Hanson, the competition was fierce: 434 applications were submitted from 25 countries, but only 40 received funding. “The standard of Estonian companies is impressively high at the European level,” Hanson noted. “GaltTec stood out for its technical maturity, potential impact, and strong focus on circular outcomes.” He emphasized that innovation doesn’t always mean inventing new products—it can also mean rethinking and improving existing processes.
He also pointed out that circular economy is not only for large industries: “We are seeing more and more small and medium-sized businesses taking steps to redesign their operations—whether by reusing materials, extending product lifespans, or exploring entirely new business models.”
GaltTec’s CEO Glen Kelp emphasizes that the company’s vision is a revolution in small-scale energy technology, in which every aspect of sustainability throughout the product lifecycle—from raw material handling to end-of-life recycling—is critically important. Resource-efficient manufacturing provides the cornerstone for this vision and is one of GaltTec’s core values. “The Up2Circ grant enables us to focus on these vital questions and contribute to strengthening Estonia’s and Europe’s competitive industry—sustainability underpins economic success,” Kelp explains.
Up2Circ is part of a broader European effort to transition the economy toward sustainability through systemic change. The total budget of the second open call was €1,020,000, with funding available for both feasibility studies (€15,000) and large-scale pilot and demonstration projects (€50,000). All applications were reviewed by independent experts, with each evaluator assessing up to 22 proposals. In total, 100 small-scale and 180 large-scale projects were evaluated.
Over the course of three years, Up2Circ has carried out three open calls and awarded €2.5 million in funding to help SMEs implement circular economy solutions and conduct feasibility studies. There will be no further calls for funding under Up2Circ. However, the Up2Circ Academy programme remains open, and the official project page will continue to showcase success stories from funded companies that have implemented circular practices.
For companies looking to improve their sustainability, Tartu Science Park recommends exploring the newly launched Eureka Circular Value Creation call, which focuses on collaborative circular economy projects.
Up2Circ is a European project supporting companies in implementing circular business models, product innovation, and process transformation. The project is funded by the Horizon Europe programme.
