- €400 million in Innovation Fund grants awarded to 65 projects across 10 EEA countries to decarbonise industrial heat
- Projects will avoid >6.6 million tonnes CO2 over 10 years and produce ~16.3 TWh of decarbonised heat in the first 5 years from 766 MWth capacity, replacing ~1.5 billion m³ of natural gas
- Technologies include direct/indirect resistance heating, heat pumps, solar thermal, electromagnetic/dielectric heating and hybrids, deployed in pulp & paper, glass, ceramics, construction materials, iron & steel, food, textiles and pharmaceuticals
- Grant agreements expected signed in H2 2026; projects must reach financial close within 2 years of signature and enter operation within 4 years; final signed list expected Q4 2026; IF26 Heat Auction planned for 2026 with €1 billion (draft T&Cs end-May 2026; stakeholder event 19 June 2026)
Overview
The European Commission selected 65 projects under the Innovation Fund Heat Auction, the first EU-wide auction to accelerate deployment of clean industrial heat technologies; the projects span 10 EEA countries (Austria, Belgium, Czechia, Denmark, France, Germany, Hungary, Portugal, Slovenia and Spain) and will receive around €400 million in grants financed by the EU Emissions Trading System.
Impact
The projects are expected to avoid over 6.6 million tonnes of CO2 across 10 years by replacing natural-gas‑fired heat, and to produce about 16.3 TWh of decarbonised heat in the first five years based on 766 MWth capacity—equivalent to replacing more than 1.5 billion m³ of natural gas.
Technologies and sectors
Technologies include direct and indirect resistance heating, heat pumps, solar thermal, electromagnetic and dielectric heating, and hybrid solutions; off‑taker sectors cover pulp & paper, glass, ceramics, construction materials, iron & steel, food & beverage, textiles and pharmaceuticals. Project sizes range from 3 to 45 MWth and grant requests from €444,000 to €37.1 million.
Schedule and conditions
CINEA will prepare grant agreements with signatures expected in the second half of 2026; projects must reach financial close within two years of signature and enter operation within four years, with the final signed project list due in Q4 2026. A second IF Heat Auction for 2026 with a €1 billion budget was announced; draft terms for IF26 are planned by end‑May 2026 and a stakeholder consultation will be held on 19 June 2026.
