The European Commission has published the final terms and conditions for its first European-wide pilot auction under the Innovation Fund, aimed at decarbonising industrial process heat, with a total budget of €1 billion.  

The auction targets the heat used in manufacturing sectors, such as chemicals, steel and cement, by supporting electrified and direct renewable heat technologies. These include heat-pumps, induction heating, plasma torches, solar-thermal and geothermal heat systems. The call is open to projects of all sizes across the European Economic Area (EEA), and the bidding window is expected to open in early December 2025.  

This initiative forms part of the Commission’s clean industrial deal and aims to enhance EU industries’ competitiveness, reduce greenhouse-gas emissions and strengthen energy security through cleaner heat solutions.  

For full details of eligibility, scope and application processes, visit the Commission’s official announcement.