Fixed Premium Auction for Industrial Process Heat Decarbonisation - High Temperature Heat

The Innovation Fund 2025 Auction Heat call, referred to as INNOVFUND-2025-AUC-HEAT, is a significant funding opportunity under the European Union's Innovation Fund program. It aims to support projects that focus on decarbonizing industrial process heat, specifically through high-temperature heat applications. The call encompasses three topics: high-temperature heat, medium-temperature heat above 5 MW, and medium-temperature heat below 5 MW.

The total budget for this initiative is €1 billion. The funding mechanism is characterized as a Fixed Premium Auction, where applicants propose unit cost bids (cost per unit) for their projects. The European Commission will select projects based on the lowest bids until the budget is exhausted, incentivizing cost-effectiveness and innovation.

Eligible organizations for this funding might include SMEs, large enterprises, research institutes, universities, and similar entities actively involved in developing and deploying innovative low-carbon technologies. While specific eligibility criteria are outlined in section 6 of the call document, eligible countries typically include EU and EEA members.

The initiative is specifically targeted at projects at the demonstration or early commercialization stage, requiring applicants to submit comprehensive proposals, including feasibility studies, financial models, and completion guarantees. The submission period opens on December 4, 2025, with a deadline of February 19, 2026.

The application process is a single-stage submission via the EU Funding & Tenders Portal, requiring detailed project information, including technical soundness, cost-effectiveness, and implementation plans. Co-funding is generally expected, with applicants often needing to provide significant financial contributions towards their projects.

Detailed eligibility requirements, evaluation criteria, and supporting regulations are available in the call document and should be thoroughly reviewed by interested parties. The Innovation Fund aims to accelerate the commercialization of low-carbon technologies, aiding the EU’s broader goals of energy transition and industrial decarbonization.

The Innovation Fund 2025 Auction Heat call (INNOVFUND-2025-AUC-HEAT) is an EU funding opportunity under the Innovation Fund (INNOVFUND) program. It supports projects focused on industrial process heat decarbonization. The call includes three specific topics: INNOVFUND-2025-AUC-HEAT-HIGHTEMP, INNOVFUND-2025-AUC-HEAT-MEDTEMP-ABOVE5MW, and INNOVFUND-2025-AUC-HEAT-MEDTEMP-BELOW5MW. The type of action is INNOVFUND-FPAUC-UN, which stands for INNOVFUND Fixed Premium Auction Unit Grants. The Model Grant Agreement (MGA) type is INNOVFUND Unit Grant [INNOVFUND-AG-UN].

The call is open for submission with a single-stage deadline model. The opening date for submissions is December 4, 2025, and the deadline for submissions is February 19, 2026, at 17:00:00 Brussels time.

The total budget for this call is 1,000,000,000 EUR for the year 2025.

The admissibility conditions for proposals, including page limits and layout, are described in section 5 of the call document. Eligible countries are described in section 6 of the call document. Other eligibility conditions are also described in section 6 of the call document. Financial and operational capacity and exclusion criteria are detailed in section 7 of the call document. The submission and evaluation processes are described in sections 8 and 11 of the call document. Award criteria, scoring, and thresholds are described in sections 8 and 9 of the call document. The indicative timeline for evaluation and grant agreement is described in section 4 of the call document. The legal and financial setup of the grants is described in section 10 of the call document.

Applicants must use the forms provided inside the Submission System (under "Part B templates") for submission. The application form specific to this call is available in the Submission System (under "Part B templates"). Additional required documents include a calculator ("Financial information file" with the bid), a completion guarantee letter of intent, a feasibility study, participant information, a timetable/Gantt chart, and an extended Part C form (for statistical data collection), which is also available in the Submission System (under "Part B templates"). A completion guarantee is required only for projects invited to grant preparation. The Model Grant Agreement (MGA) is the INNOVFUND Unit MGA.

The legal basis for this call for proposals is Decision C(2025)7674 and Annex. Additional legal framework documents include the Decision on unit contributions for the Innovation Fund, the INNOVFUND Legal Framework, INNOVFUND Regulation 2019/856, ETS Directive 2003/87, and EU Financial Regulation 2024/2509. Additional documents include the Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment, the EU Grants AGA Annotated Model Grant Agreement, the Funding & Tenders Portal Online Manual, the Funding & Tenders Portal Terms and Conditions, and the Funding & Tenders Portal Privacy Statement.

To access the Electronic Submission Service, applicants should click on the submission button next to the type of action and the type of model grant agreement that corresponds to their proposal. To access existing draft proposals for this topic, applicants can log in to the Funding & Tenders Portal and select the My Proposals page of the My Area section.

For help related to this call, applicants can contact the InnovFund helpdesk for questions specifically related to the call documentation, application, and evaluation process, or the IT Helpdesk for technical questions. The Online Manual provides a step-by-step guide through the Portal processes.

In summary, this EU funding opportunity, part of the Innovation Fund, aims to support projects that decarbonize industrial process heat. It uses a fixed premium auction mechanism to award unit grants. The call is structured around high and medium temperature heat applications, with a distinction for medium temperature projects above and below 5MW. A substantial budget of 1 billion EUR is available. The application process involves a single stage submission with a deadline in February 2026. Applicants need to carefully consult the call documents for detailed eligibility criteria, application guidelines, and the legal and financial framework. Support is available through dedicated helpdesks and online manuals.

Eligible Applicant Types: The provided text does not explicitly list eligible applicant types. However, based on the nature of the Innovation Fund and its objectives, it can be inferred that eligible applicants could include: SMEs, large enterprises, research institutes, universities, and other entities involved in developing and deploying innovative low-carbon technologies. A more precise answer would require consulting the call document, specifically section 6, as indicated in the provided text.

Funding Type: The primary financial mechanism is a grant, specifically an INNOVFUND Fixed Premium Auction Unit Grant (INNOVFUND-FPAUC-UN) and INNOVFUND Unit Grant (INNOVFUND-AG-UN). The call is part of the Innovation Fund 2025 Auction - Heat.

Consortium Requirement: The text does not explicitly state whether a single applicant or a consortium is required. This information is likely detailed in the call document.

Beneficiary Scope (Geographic Eligibility): The text refers to the Innovation Fund, which generally targets beneficiaries within the EU and potentially associated countries. Section 6 of the call document should provide specific details on eligible countries.

Target Sector: The program targets the decarbonization of industrial process heat, specifically focusing on high-temperature heat, medium-temperature heat above 5MW, and medium-temperature heat below 5MW. This falls under the broader categories of energy, climate, and industrial processes.

Mentioned Countries: No specific countries are mentioned in the provided text. The geographic eligibility is determined by the Innovation Fund's general scope, which typically includes EU member states and associated countries.

Project Stage: The call targets projects that are likely at the demonstration or commercialization stage, given the focus on industrial process heat decarbonization. The requirement of a feasibility study suggests that projects should have progressed beyond the initial idea stage.

Funding Amount: The total budget for the call is EUR 1,000,000,000. The specific grant amounts for individual projects will vary depending on the project scope and the auction results.

Application Type: The application type is an open call, as indicated by the "Open For Submission" status. The submission process involves an electronic submission service accessible through the Funding & Tenders Portal. The call uses a fixed premium auction mechanism.

Nature of Support: Beneficiaries will receive money in the form of grants.

Application Stages: The call is a single-stage process, as indicated by "Deadline model: single-stage".

Success Rates: The provided text does not include information on success rates.

Co-funding Requirement: The provided text does not explicitly mention a co-funding requirement. This information is likely detailed in the call document.

Summary:

This is a call for proposals under the Innovation Fund 2025 Auction - Heat (INNOVFUND-2025-AUC-HEAT), aiming to decarbonize industrial process heat. The call is structured as a fixed premium auction, offering INNOVFUND Fixed Premium Auction Unit Grants (INNOVFUND-FPAUC-UN) and INNOVFUND Unit Grants (INNOVFUND-AG-UN). The total budget is EUR 1 billion. The call focuses on high-temperature heat, medium-temperature heat above 5MW, and medium-temperature heat below 5MW. The application process is single-stage, with a deadline of February 19, 2026. Applicants must submit their proposals electronically through the Funding & Tenders Portal. The legal basis for the call is Decision C(2025)7674 and Annex, along with other relevant EU regulations and directives. Applicants should consult the call document for detailed information on eligibility criteria, evaluation processes, and legal and financial requirements. The call is relevant for entities involved in developing and deploying innovative low-carbon technologies for industrial process heat.