EU awards €400 million to 65 industrial heat projects in first auction

The European Commission has allocated €400 million across 65 projects in its first Innovation Fund auction dedicated to industrial heat decarbonisation. The funding covers ten European countries and focuses on two technology pathways: direct electrification of heat processes and the integration of renewable heat sources into energy-intensive industries.

The auction structure marks a deliberate policy shift. Previous Innovation Fund rounds addressed a broader technology mix; carving out a heat-specific round signals the Commission is treating industrial heat (roughly one-fifth of EU final energy demand) as a discrete decarbonisation problem requiring targeted capital. Average support per project works out to approximately €6.2 million, suggesting a portfolio weighted toward mid-scale industrial retrofits rather than flagship flagship demonstrators.

No pipeline figures or capacity additions were disclosed in the available reporting. The Commission has not yet published a timeline for a second heat auction round, per pv magazine.