Fixed Premium Auction for Industrial Process Heat Decarbonisation - Medium Temperature Heat - 3 to 5 MW

The Innovation Fund 2025 Auction Heat call, designated as INNOVFUND-2025-AUC-HEAT, aims to support projects focused on decarbonizing industrial process heat. It includes three specific topics: high-temperature heat, medium-temperature heat above 5 MW, and medium-temperature heat below 5 MW. The funding mechanism involves INNOVFUND Fixed Premium Auction Unit Grants, allowing financial support based on a competitive bidding process.

The total budget for this call is set at 1 billion euros, divided among the three topics. The application process operates on a single-stage basis, opening on December 4, 2025, and closing on February 19, 2026, at 17:00 Brussels time, requiring electronic submissions through the EU Funding & Tenders Portal.

Eligible applicants include various entities, such as SMEs, large enterprises, and research institutions based within the European Economic Area (EEA), which encompasses EU Member States, Iceland, Liechtenstein, and Norway. There are no consortium requirements for applicants, allowing single enterprises to apply independently.

The call particularly targets industrial process heat decarbonization by supporting technologies like heat pumps, electric boilers, resistance heating, and renewable heating solutions such as solar thermal and geothermal systems. Projects should be in a mature stage, particularly those ready for commercial deployment, and demonstrate the potential for certified production of heat.

Successful applicants will receive financial support linked to the verified production outputs of their projects, typically over a duration of up to 10 years post-operation commencement. There is an expectation for significant co-funding, indicating that applicants must secure private and additional funding to achieve financial closure.

The evaluation process consists of ranking submissions based on cost-effectiveness and technical quality after the submission deadline, with formal grant agreements anticipated in mid to late 2026. The auction design aims to ensure that public funding is allocated to the projects with the lowest subsidy requirements necessary for achieving decarbonization targets.

Overall, this funding opportunity is essential for advancing the deployment of innovative low-carbon technologies in the energy-intensive industrial sector, contributing to broader climate neutrality goals in Europe.

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 for high temperature heat, INNOVFUND-2025-AUC-HEAT-MEDTEMP-ABOVE5MW for medium temperature heat above 5 MW, and INNOVFUND-2025-AUC-HEAT-MEDTEMP-BELOW5MW for medium temperature heat below 5 MW. 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 employs a single-stage submission process. 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 allocated to this call is 1,000,000,000 EUR.

Key conditions for application include: Admissibility conditions related to proposal page limit and layout, as described in section 5 of the call document; Eligible countries, as described in section 6 of the call document; Other eligible conditions, also described in section 6 of the call document; Financial and operational capacity and exclusion criteria, detailed in section 7 of the call document; Submission and evaluation processes, as described in sections 8 and 11 of the call document; Award criteria, scoring, and thresholds, detailed in sections 8 and 9 of the call document; Indicative timeline for evaluation and grant agreement, as described in section 4 of the call document; Legal and financial setup of the grants, detailed in section 10 of the call document.

Applicants must use the forms provided within the Submission System under "Part B templates" for submission. Templates are available for information only. Required documents include the application form specific to the call, 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. A completion guarantee is required only for projects invited to grant preparation.

The legal framework for this call is based on Decision C(2025)7674 and Annex, 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 submit a proposal, applicants must access the Electronic Submission Service via the submission button, selecting the appropriate type of action and model grant agreement. The choice cannot be changed in the submission system. Existing draft proposals can be accessed by logging into the Funding & Tenders Portal and selecting the "My Proposals" page.

For assistance, applicants can contact the InnovFund helpdesk for call-specific questions or the IT Helpdesk for technical issues. The Online Manual provides a step-by-step guide through the Portal processes.

In summary, this Innovation Fund call aims to support projects that decarbonize industrial process heat through fixed premium auction unit grants. It targets high and medium temperature heat projects with varying capacity scales. The application process involves a single-stage submission with a deadline in February 2026. Applicants need to adhere to specific admissibility and eligibility conditions, provide detailed project documentation, and comply with the relevant legal and financial frameworks. Support is available through dedicated helpdesks and online resources.

Eligible Applicant Types: The eligible applicant types are not explicitly stated in the provided text. However, based on the nature of the Innovation Fund and its objectives, it can be inferred that eligible applicants could include a range of entities such as: SMEs, large enterprises, research institutes, universities, and other organizations involved in innovative projects related to decarbonization. The specific eligibility criteria will be detailed in section 6 of the call document.

Funding Type: The primary financial mechanism is a grant, specifically "INNOVFUND Fixed Premium Auction Unit Grants" and "INNOVFUND Unit Grant". This indicates a grant-based system where funding is allocated based on a fixed premium auction mechanism.

Consortium Requirement: The provided text does not explicitly state whether a consortium is required or if single applicants are allowed. This information would likely be detailed in the call document, specifically in the sections related to eligibility conditions.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility is not explicitly mentioned in the provided text. However, given that it is an EU funding opportunity under the Innovation Fund, it is highly likely that the primary geographic focus is on entities within the EU, potentially including EEA countries and possibly associated countries. Section 6 of the call document should provide the specific details.

Target Sector: The program targets the industrial sector, specifically focusing on industrial process heat decarbonization. The call includes topics related to high-temperature heat and medium-temperature heat (above 5MW and below 5MW), indicating a focus on reducing emissions from industrial heating processes.

Mentioned Countries: No specific countries are mentioned in the provided text. The focus is on the EU framework and regulations.

Project Stage: The expected maturity of the project is not explicitly stated, but the emphasis on "Fixed Premium Auction Unit Grants" suggests that the projects should be at a stage where their performance and emission reduction potential can be reliably assessed and quantified. This likely means projects in the demonstration or commercialization stage, where the technology has been validated and is ready for deployment. A feasibility study is also mentioned in the application documents, so projects in the development stage may also be considered.

Funding Amount: The total budget for the call is EUR 1,000,000,000 (1 billion EUR). The specific grant amounts for individual projects will likely vary depending on the scale and impact of the proposed projects, as determined through the fixed premium auction mechanism.

Application Type: The application type is an open call, as indicated by "Open For Submission" and the availability of the submission session for the specified topics. The call utilizes a single-stage submission model.

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

Application Stages: The application process consists of a single stage.

Success Rates: The success rates are not mentioned in the provided text.

Co-funding Requirement: The co-funding requirement is not explicitly mentioned in the provided text.

Summary:

This is a call for proposals under the EU Innovation Fund, specifically targeting industrial process heat decarbonization. The call, titled "Innovation Fund 2025 Auction Heat (INNOVFUND-2025-AUC-HEAT)", aims to support projects that reduce emissions from industrial heating processes through the deployment of innovative technologies. The call is structured around a fixed premium auction mechanism, where grants are awarded based on the emission reduction potential and cost-effectiveness of the proposed projects.

The call includes three specific topics: high-temperature heat, medium-temperature heat above 5MW, and medium-temperature heat below 5MW. The total budget for the call is EUR 1 billion, and the application process is a single-stage submission. The call opened on December 4, 2025, and the deadline for submissions is February 19, 2026.

Applicants are required to submit a comprehensive proposal, including an application form, a financial information file, a feasibility study, and other supporting documents. The evaluation process will consider the admissibility conditions, eligibility criteria, and award criteria outlined in the call document. The legal and financial setup of the grants will be governed by the INNOVFUND Unit MGA and other relevant EU regulations.

The call is relevant to a wide range of entities involved in industrial decarbonization, including SMEs, large enterprises, research institutes, and other organizations with innovative projects in the field of industrial process heat. The Innovation Fund helpdesk and IT Helpdesk are available to provide support and answer questions related to the call.