The first EU-wide auction for decarbonising industrial process heat (IF25 Heat Auction) marks a major step toward creating the future Industrial Decarbonisation Bank, aimed at tackling one of the EU’s largest sources of greenhouse gas emissions. €1 billion will be allocated to support electrified and direct-renewable heat generation. Funding will be awarded to projects that can deliver the most cost-effective CO₂ reductions, helping to close the cost gap between sustainable technologies and fossil fuel-based process heat.
This auction concerns the production of industrial process heat above 100°C. Two baskets specifically concern medium temperature heat:
- A specific basket has been set up for projects ranging from 3 MWth to 5 MWth, with a dedicated budget of €150 million.
- A basket of €350 million has been set up for projects exceeding 5 MWth.
Furthermore, a completion guarantee covering 6% of the requested maximum grant will be required to avoid speculative bids.
Bidders have until 19 February 2026, 17:00 (CET), to apply through the EU Funding & Tenders Portal. An Info Day covering both auctions will be held on 10 December 2025.
Solar thermal projects are clearly eligible to the Bank so we strongly invite SHE members to apply.
Useful links:
Auction call for proposals: https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/innovfund/wp-call/2025/call-fiche_innovfund-2025-auc-heat_en.pdf
To register for the info day: https://cinea.ec.europa.eu/news-events/events/innovation-fund-2025-heat-auction-info-day-2025-12-10_en