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By Asma Adhimi
The European Commission has selected 65 projects across Europe to share around €400 million in funding aimed at cutting industrial emissions through cleaner heat production technologies. The projects were chosen under the first Innovation Fund Heat Auction, an EU-wide initiative designed to accelerate the deployment of low-carbon industrial heating systems.
The selected projects span 10 countries including Germany, France, Spain and Denmark, and cover technologies ranging from industrial heat pumps and solar thermal systems to electric resistance heating. Together, the projects are expected to avoid more than 6.6 million tonnes of CO2 emissions over the next decade.
For eeNews Europe readers, the programme highlights the growing commercial and political momentum behind industrial electrification and process heat decarbonisation. It also signals significant opportunities for suppliers of power electronics, thermal management systems, industrial automation and renewable energy technologies.
Most of the successful projects rely on direct or indirect electric resistance heating, underlining the increasing role of electrification in hard-to-abate industrial sectors. Moreover, other projects involve hybrid systems, electromagnetic heating, dielectric heating and large-scale heat pumps.
The Commission said the projects are expected to generate around 16.3TWh of decarbonised heat during their first five years of operation, supported by a combined thermal capacity of 766MW. According to the Commission, that would replace more than 1.5 billion cubic metres of natural gas — equivalent to the annual gas consumption of around 4 million EU households.
Industrial sectors covered by the programme include pulp and paper, glass, ceramics, construction materials, iron and steel, food and beverage, textiles and pharmaceuticals.
The funding comes from revenues generated by the EU Emissions Trading System (ETS) and forms part of the wider Innovation Fund, which has an estimated €40 billion budget between 2020 and 2030.
The auction is also being positioned as a pilot scheme for the future Industrial Decarbonisation Bank, intended to scale up investment into low-carbon industrial technologies across Europe.
“This is a real game changer for EU decarbonisation,” said Wopke Hoekstra. “The projects span technologies from heat pumps and solar thermal to electric resistance heating. Collectively, they are expected to replace more than 1.5 billion cubic metres of natural gas over the next five years — roughly equivalent to the annual gas consumption of 4 million EU households. A win for climate, competitiveness, and energy independence.”
The projects will now move into grant agreement negotiations with the European Climate, Infrastructure and Environment Executive Agency (CINEA). Agreements are expected to be signed during the second half of 2026.
Projects must reach financial close within two years and enter operation within four years of signing.
The Commission has already started preparations for a second Heat Auction round in 2026, with a planned budget of €1 billion, reflecting strong industry interest. The first call attracted 85 applications with nearly €10 billion worth of bids for decarbonisation support.
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