Call design
As part of the Clean Industrial Deal a new Innovation Fund auction (IF25 Heat Auction) was announced in February 2025 to promote the decarbonisation of key industrial processes.
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
- September-OctoberExpected Grant Agreement signature
- May-June 2026Evaluation results
- 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.