Innovation Fund – Auction for clean industrial heat (IF26 Heat Auction)

In plain words

The EU puts €1 billion into an auction for factories that will make their process heat without fossil fuels, e.g. with heat pumps, electric boilers or solar thermal. It pays a fixed amount for every tonne of CO2 avoided, for 5 years from the start of operation. It is for big installations (at least 3 MW of heat and €2.5 million of investment), and the cheapest bids win.

Who can apply

Industrial companies of any size and sector (e.g. food and drink, chemicals, paper, cement, steel) with a project in the European Economic Area (EEA: EU, Norway, Iceland, Liechtenstein). There is no limit on the origin or type of participants. SMEs win ties and can ask to be paid every six months.

What it pays for

A new heat installation for industrial processes at one site: electric technologies (heat pumps, electric boilers, thermal storage, plasma), renewable heat (solar thermal, geothermal), innovative nuclear heat, or combinations. Three bands: 80–100°C (€100 million), 100–400°C (€600 million) and above 400°C (€300 million). Support is a fixed amount per tonne of CO2 avoided, up to €400/tonne (€800/tonne above 400°C), capped at €100 million per bid (€250 million above 400°C). Space heating, district heating, biomass and hydrogen are not covered.

What must be true for you

Tick what applies. Saved on this device only.

• A new installation of at least 3 MW of heat (5 MW for 80–100°C) with at least €2.5 million of investment, at one site in the EEA.
• Work must not have started before applying; no new fossil-fuel capacity at the same installation.
• A bank's letter of intent for a completion guarantee; if selected, a guarantee of 6% of the maximum support.
• Financial close within 2.5 years and start of operation within 5 years of signing the grant agreement.
• Compliance with the 'do no significant harm' (DNSH) environmental rules.

How to apply

1. Read the IF26 Heat Auction page and the final Terms and Conditions (24 Sep 2026) on the Commission's climate website.
2. Work out the heat capacity, process temperature, tonnes of CO2 you will avoid and the price per tonne that works for you.
3. Ask your bank for a letter of intent for a completion guarantee, using the mandatory template.
4. Create an EU Login account and a PIC, and submit your bid on the Funding & Tenders Portal when the auction opens (planned for December 2026).
5. Bids are ranked on price only; if you win, provide the guarantee within 2 months of the selection letter and sign the grant agreement.

Where to apply: EU Funding & Tenders Portal – ec.europa.eu/info/funding-tenders/opportunitie…

Deadline

Planned, not open yet. The Commission plans to open the auction in December 2026 and close it in February 2027; exact dates will be announced with the call.

See also

• EIT Food – up to €60,000 for a startup pilot with a large food company43 days left · EU-wide
• EIC Accelerator – funding for breakthrough startups and SMEs17 days left · EU-wide
• I3 – Interregional Innovation Investments 202625 days left · EU-wide
• Innovation Fund – New call only for SMEs (IF26 SME Call)no date yet · EU-wide