Iberdrola awarded eight EU Innovation Fund projects for industrial heat electrification
- Iberdrola won eight projects in the European Commission's Innovation Fund industrial-heat auction.
- The initiatives will require around 240 GWh per year of renewable electricity and use electric boilers to replace fossil fuels.
- Long-term PPAs linked to the projects will mobilise more than 150 MW of renewable capacity, plus another 90 MW from two separate Iberdrola PPAs.
- Iberdrola's selected projects received nearly €50 million in aid, about 35% of the total awarded in Spain within the 65-project, ~€400m package.
Award and scope
Iberdrola was awarded eight projects in the European Commission's Innovation Fund auction for industrial heat decarbonisation, part of a 65-project package across ten countries managed by CINEA. Spain accounted for 24 of the 65 awards.
Scale and impact
The initiatives focus on direct electrification of heat via electric boilers and will require about 240 GWh per year of renewable electricity. They target energy-intensive sectors including food and beverages, chemicals, manufacturing, tyres and mining, and aim to reduce CO2 emissions linked to high-demand industrial processes.
Commercial model
Selected projects received nearly €50 million in aid—roughly 35% of the total granted in Spain—and include long-term power purchase agreements that will mobilise more than 150 MW of renewable capacity. Iberdrola also references two other Spanish PPAs totalling around 90 MW. The company offers end-to-end delivery: design, construction, operation and supply of the renewable energy necessary to produce electrified heat.
Outlook
Company statements describe direct electrification as an effective short-term lever to cut industrial emissions and note the European Commission is preparing a second call for industrial heat auctions in the coming months.
Source: Iberdrola