Objective
Launched in February 2025 as part of the Clean Industrial Deal, the Innovation Fund 2025 Heat Auction (IF25 Heat Auction) promotes the decarbonisation of key industrial processes. This contributes to the EU’s 2050 climate neutrality target and strengthens Europe’s energy security, competitiveness, and affordability.
The auction gives financial support through a competitive bidding process, designed to maximise cost-efficient greenhouse gas emission reductions and support market price discovery.
Design
This fixed-premium auction has a budget of up to €1 billion raised from the auctioning of EU Emissions Trading System (EU ETS) allowances and three topics to support projects that decarbonise industrial process heat through innovative technologies such as:
- heat pumps;
- electric boilers;
- resistance heating;
- induction and plasma heating;
- renewable heat solutions (solar thermal and geothermal), and more.
Support will be granted as an output-based fixed premium, linked to verified decarbonised heat production and paid for a maximum period of five years. The following three topics are covered in the call:
- Medium temperature heat 3-5MW - €150 million available
- Medium temperature heat above 5MW- €350 million available
- High temperature heat - €500 million available
Results
The Commission selected 65 projects and invited them to prepare Grant Agreements. They are located in 10 European countries and are expected to produce around 16.3 terawatt-hours (TWh) of decarbonised heat over their first 5 years of operation, based on a thermal capacity of 766 megawatts (MW).
This documents lists the projects selected for Grant Agreement Preparation under the IF25 Heat Auction, divided by topic.
Innovation Fund 2025: Heat Auction - Result Publication
Please note that there may be differences between the projects invited to sign Grant Agreements and those that ultimately proceed to signature. For more information, please consult our Q&A on the IF25 Heat Auction.
Timeline
- September-OctoberExpected Grant Agreement signature
- 22/05/2026The Commission announced the selection of 65 projects invited to prepare Grant Agreements
- 20/03/2026The Commission published a web news providing further information on the response from industry to this auction
- 19/02/2026The Call closed for proposals, receiving a total of 85 bids
- 10/12/2025The Info Day for the Auction was held to help interested applicants prepare their proposals
- 04/12/2025The Auction opened for proposals on the EU Funding and Tenders portal
- 10/10/2025The official Terms & Conditions (T&Cs) of the Auction were published
- 09/07/2025Webinar presenting the draft Terms and Conditions (T&Cs)
A webinar presenting the draft Terms and Conditions (T&Cs) for the preparation of the IF25 Heat Auction occurred to provide preliminary guidance on the application process ahead of the official call opening.
- 27/06/2025Innovation Fund hybrid stakeholder consultation
A general Innovation Fund hybrid stakeholder consultation event took place, which also gathered feedback on the Heat Auction.
- 16/04/2025First stakeholder consultation
The first stakeholder consultation was held to present the design of the new auction for industrial process heat decarbonisation under the Innovation Fund.
This page was last updated on 22 May 2026