Brussels — May 26, 2026 — The European Commission has awarded nearly €400 million to 65 projects across ten EU nations under the first Innovation Fund Heat Auction, a major step toward industrial heat decarbonisation. The initiative, financed by revenues from the EU Emissions Trading System (EU ETS), attracted 85 applicants, with selected projects ranging from 3 MWth to 45 MWth.
The projects are expected to avoid more than 6.6 million tons of CO2 emissions over the next decade and generate around 16.3 TWh of clean heat in their first five years of operation. This output will replace over 1.5 billion cubic meters of natural gas, equivalent to the annual consumption of 4 million EU households.
Funding will be distributed across Austria, Belgium, Czechia, Denmark, France, Germany, Hungary, Portugal, Slovenia, and Spain. Individual grants range from €444,000 to €37.1 million, supporting both small and large‑scale initiatives.
The European Climate, Infrastructure and Environment Executive Agency (CINEA) will oversee grant agreements, expected to be signed in the second half of 2026. Projects must reach financial close within two years and begin operations within four years.
This landmark auction underscores the EU’s commitment to accelerating the transition to clean energy, reducing reliance on fossil fuels, and strengthening its climate leadership.
