The article and two of the links I clicked through didn't explicitly say either way.
My guess, given what the video was showing of how intricate a lot of these books are constructed, I'd guess that 'digitized' will mean closer to 'photographed pages compiled as PDFs' rather than a re-writing of them to allow search-ability.
Then again, 300k euro is a lot of cash to photocopy a few thousand books, so maybe there will be a bit of both.