Supporting R&D projects is FNR's core resonsibility. The main instruments for managing and supporting projects are

1. Research programme "Renewable Resources"

Under the "Renewable Resources" programme, projects can be supported which either

• Build up production chains of renewable resources (from production to end uses),
• Open up further possible applications in the non-food sector, 
• Provide information and counsel, especially for producers, processors and users of renewable resources or
• Engage in marketing and public relations work.

Projects can only be funded if they align with the three aims of the programme, i.e. if they

• Contribute to a sustainable allocation of raw materials and energy.
• Help the environment by saving resources, producing environmentally friendly goods and decreasing CO2 emissions.
• Improve the competitiveness of the German agricultural and forestry sector as well as upstream and downstream business areas.

The fields which can be supported include starch, sugar, biogenous oils and fats, fibres, lignocellulose/wood, wood as a construction/industrial material, proteins, plant extractives (for the pharmaceutic, cosmetic or food industry etc) and energy uses of solid, liquid and gaseous fuels, as well as public relations work improving public acceptance of renewable resources and increasing the demand for products made from them.

2. Market Introduction Programme Renewable Resources

Many products made of renewable resources have already entered the market - but they have a hard time competing with their conventional, fossil counterparts, as the renewable "newcomer" is often more expensive and consumers look askance at the unfamiliar product. This is where the Market Introduction Programme comes in. It is directed at retailers as well as consumers. With regard to the former group, the aim is to cover the additional cost caused by changing to a renewable product, with regard to consumers, the goal is public acceptance of the products. The two sub-programmes supporting natural insulation materials and bio-lubricants ended at the end of 2007 and 2008 respectively. The remaining sub-programme helps to establish biofuel filling stations run by agricultural enterprises for their own needs.

3. Directive on bioenergy demonstration projects

While energy production from biomass is increasingly viewed as important due to decreasing stocks of fossil fuels and concerns about climate change, the market situation of these renewable fuels leaves a lot to be desired. To improve this situation, a directive issued by the Federal Ministry of Food, Agriculture and Consumer Protection in December 2005 makes it possible for FNR to support bioenergy demonstration projects.

The scheme concentrates on plants and technologies whose practicability has already been proven at pilot stage. Furthermore, they must be state of the art and likely to continue running on a commercial scale after the demonstration project. Support is given either as an investment grant or an allowance for operating costs, never as a combination of both.

The directive is set to expire on 31st December 2010.