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

The Innovation Fund 2025 Auction for Medium Temperature Heat Decarbonisation (Above 5 MW) is a funding opportunity aimed at advancing innovative low-carbon heating technologies across European industries. This competitive bidding mechanism offers a total budget of €1 billion in fixed-premium grants to support industrial process heat decarbonisation projects.

Eligible applicants include all types of organizations engaged in this sector, from large enterprises to small and medium-sized enterprises, and even potential consortia. The funding type is structured as a fixed-premium auction, where businesses submit bids specifying the level of subsidy they require per unit of output, with preference given to those requiring lower public subsidies. Payments are contingent on verified operational milestones, distinguishing this initiative from traditional grant models.

Geographic eligibility spans the European Economic Area (EEA), encompassing all EU member states along with Iceland, Liechtenstein, and Norway, allowing for projects from any of these nations to apply. The focus is on industrial sectors needing medium-temperature heat applications in installations above 5 MW, including technologies like heat pumps, electric boilers, and renewable heat solutions.

The auction runs from December 4, 2025, to February 19, 2026, and is structured as a single-stage submission process, meaning that applicants will submit complete proposals once, which are then evaluated and ranked based on their competitiveness within the budget. Projects must demonstrate maturity and readiness for commercial operation within five years.

While there are no explicit national co-funding requirements, substantial co-investment is generally expected. A structured assessment will determine the allocation of funds based on the competitive nature of submitted bids. Applicants should carefully review all call documentation for detailed criteria on admissibility, eligibility, and evaluation processes, as well as expected documentation for submission.

Overall, this funding opportunity is positioned as a crucial driver for enhancing industrial decarbonization, aligning with the EU's climate neutrality goals by supporting mature technologies that can significantly reduce carbon emissions in industrial processes.

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 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 allocated to this call is 1,000,000,000 EUR.

The legal basis for this call for proposals is Decision C(2025)7674 and Annex. Additional legal 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.

Applicants must adhere to several admissibility conditions, including proposal page limits and layout requirements, as detailed in section 5 of the call document. Eligible countries are specified in section 6 of the call document, along with other eligibility conditions. Financial and operational capacity and exclusion criteria are described in section 7 of the call document. The submission and evaluation processes are outlined in sections 8 and 11 of the call document. Award criteria, scoring, and thresholds are detailed in sections 8 and 9 of the call document. The indicative timeline for evaluation and grant agreement is provided in section 4 of the call document. The legal and financial setup of the grants is described in section 10 of the call document.

Required documents for submission include the application form (available in the Submission System under "Part B templates"), a calculator ("Financial information file"), 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, available in the Submission System under "Part B templates"). A completion guarantee will be requested only for projects invited to grant preparation.

Additional documents for applicants' information include application form templates, the INNOVFUND Unit MGA, 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. Existing draft proposals can be accessed by logging into the Funding & Tenders Portal and selecting the "My Proposals" page in the "My Area" section.

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 prepare a comprehensive proposal, including technical, financial, and legal documentation, and submit it through the EU Funding & Tenders Portal. The call provides substantial funding to drive innovation in industrial decarbonization and aligns with the EU's broader climate and energy goals.

Eligible Applicant Types: The eligible applicant types are not explicitly stated in the provided text. The call documentation (specifically sections 6 and 7) should be consulted to determine the eligible applicant types.

Funding Type: The funding type is a grant, specifically an INNOVFUND Fixed Premium Auction Unit Grant (INNOVFUND-FPAUC-UN) or an INNOVFUND Unit Grant (INNOVFUND-AG-UN). The mechanism involves a fixed premium auction.

Consortium Requirement: The text does not explicitly state whether a single applicant or a consortium is required. The call documentation should be consulted for this information.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility for applicants is not explicitly stated in the provided text. Section 6 of the call document should be consulted to determine eligible countries.

Target Sector: The program targets industrial process heat decarbonisation, 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 call is likely open to entities within the EU and potentially other countries as defined in the "Eligible Countries" section of the call document.

Project Stage: The project stage is not explicitly mentioned, but given the focus on industrial process heat decarbonisation and the requirement for a feasibility study, it is likely targeting projects in the development, validation, or demonstration stages.

Funding Amount: The total budget for the call is EUR 1,000,000,000. The specific funding range per project is not detailed in the provided text.

Application Type: The application type is an open call, with a single-stage submission process. The call utilizes a fixed premium auction mechanism.

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

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 text does not explicitly state whether co-funding is required.

Summary:

This is a call for proposals under the Innovation Fund (INNOVFUND) focusing on the decarbonisation of industrial process heat. The call, titled "Innovation Fund 2025 Auction Heat (INNOVFUND-2025-AUC-HEAT)", aims to support projects that reduce greenhouse gas emissions by implementing innovative technologies for high and medium temperature industrial heating processes. The call is structured as a fixed premium auction, where applicants bid for a fixed premium per unit of emission reduction. The total budget for this call is EUR 1,000,000,000.

The call is divided into three topics: 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. The call documentation, including the call document, application form templates, legal framework, and additional documents, can be found on the Funding & Tenders Portal. Applicants must submit their proposals electronically through the portal. The legal basis for this call is Decision C(2025)7674 and Annex, along with other relevant EU regulations and directives. Applicants should carefully review the admissibility conditions, eligibility criteria, evaluation process, and legal and financial setup outlined in the call documentation. Helpdesks and support services are available to assist applicants with questions related to the call.