Phase out fossil fuel in energy intensive industries through the efficient integration of renewable energy sources
Overview
The grant opportunity, titled "Phase out fossil fuel in energy intensive industries through the efficient integration of renewable energy sources," is a Horizon Innovation Action under the Horizon Europe program within Cluster 5. This initiative aims to develop and demonstrate innovative solutions for the integration of renewable energy sources into industrial processes, significantly reducing fossil fuel consumption and greenhouse gas emissions while ensuring global competitiveness. Eligible applicants include startups, SMEs, large enterprises, universities, research institutes, public-private partnerships, and potentially other legal entities capable of conducting relevant research and innovation activities. The funding is in the form of grants, specifically HORIZON Innovation Actions, with grants expected to be around €5 million each, with a total budget planned at €15 million for three grants. A consortium is typically required for applicants, as collaborative efforts are encouraged, particularly for large-scale projects within Horizon Europe. Geographic eligibility covers EU member states, Associated Countries, and possibly non-EU entities. The target sectors include energy, climate, and manufacturing, focusing on the transition from fossil fuels to renewable energy in industrial sectors, particularly those with significant heating demands. The projects are expected to be at the development and demonstration stage, with applications showing potential integration of renewable energy sources for heating, cooling, and power generation. The funding application process is a single-stage, with an opening date of September 16, 2025, and a deadline of February 17, 2026. Co-funding is typically required, with rates of 70% for non-profits and 50% for others, aligning with standard co-funding expectations in Horizon Europe initiatives. The anticipated success rates for applicants are generally between 10% to 39%. Successful projects should aim for robust business models and exploitation strategies, incorporating numerical simulations to demonstrate scalability and adaptability in real industrial environments. All details regarding eligibility, application forms, and specific requirements are outlined in the Horizon Europe Work Programme and the accompanying guidelines. This funding opportunity is part of a broader effort to enhance energy efficiency, reduce emissions, and bolster the competitiveness of EU industries in transitioning to sustainable practices.
Highlights
The EU funding opportunity HORIZON-CL5, titled "Phase out fossil fuel in energy intensive industries through the efficient integration of renewable energy sources," is a Horizon Innovation Action (HORIZON-IA) under the Horizon Europe (HORIZON) program, specifically within Cluster 5 Call 02-2026 (WP 2025) (HORIZON-CL5-2026-02). The call aims to develop and demonstrate innovative solutions for integrating renewable energy sources into industrial processes to reduce and eventually eliminate the use of fossil fuels.
The expected outcomes of this funding opportunity are:
1. Development of pathways and business models for at least one industrial sector with significant heating demand in the EU and Associated Countries to improve energy efficiency and reduce fossil fuel consumption and emissions, while preserving or enhancing global competitiveness.
2. Tight integration of industrial processes with a significant heating demand to minimize energy losses, with energy supply relying on the local integration of a combination of renewable energy sources, including process flexibility and storage to minimize electricity grid demand, ultimately phasing out fossil fuels.
The scope of the projects should include:
1. Demonstration of innovative solutions for efficient, long-lasting, and cost-effective local integration of renewable thermal, electrical, bioenergy, and other renewable energy sources in industrial processes for heating, cooling, and power generation. This includes optimizing process efficiency and reuse, and potentially upgrading excess heat.
2. Integration of process flexibility and energy storage to match energy demand with the variable renewable energy supply profile and minimize electricity demand from the power grid.
3. Consideration of integration with neighboring industries and/or communities for energy and resource sharing and efficiency.
4. Design of solutions to ensure very low GHG and pollutant emissions, high reliability and safety, and strong physical and cyber security.
5. Physical demonstration of the solution in an industrial environment, applicable to a significant share of the industrial plant's total energy demand.
6. Demonstration through numerical simulations that the solution can be scaled up to completely phase out fossil fuels.
7. Facilitation of future deployment of the solution in EU and Associated Countries’ plants within the same industrial sector(s), including surveying and analyzing the needs of factories to design adaptable solutions, identify common components for optimization/standardization, and issue/disseminate technical and economic guidelines.
8. Presentation of a strong business model and sound exploitation strategy for the proposed solution.
The general conditions for admissibility, eligibility, financial and operational capacity, exclusion, evaluation, award, submission, evaluation processes, indicative timeline, and legal and financial setup are described in the Annexes A, B, C, D, F, and G of the Horizon Europe Work Programme General Annexes, Part B of the Application Form, and the Online Manual. Specific conditions are described in the specific topic of the Work Programme.
The application and evaluation forms, as well as the model grant agreement (MGA), are available in the Submission System. The standard application form for HE RIA and IA projects should be used. Guidance is provided in the HE Programme Guide and the HE MGA.
Additional documents include:
HE Main Work Programme 2025 – 1. General Introduction
HE Main Work Programme 2025 – 8. Climate, Energy and Mobility
HE Main Work Programme 2025 – 14. General Annexes
HE Programme Guide
HE Framework Programme 2021/695
HE Specific Programme Decision 2021/764
EU Financial Regulation 2024/2509
Decision authorising the use of lump sum contributions under the Horizon Europe Programme
Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment
EU Grants AGA — Annotated Model Grant Agreement
Funding & Tenders Portal Online Manual
Funding & Tenders Portal Terms and Conditions
Funding & Tenders Portal Privacy Statement
The budget overview for the call in 2025 includes various topics with different funding amounts, stages, opening dates, deadlines, contributions, and indicative numbers of grants. All topics have a single-stage submission process, an opening date of September 16, 2025, and a deadline of February 17, 2026.
The topics and their corresponding budgets and indicative number of grants are:
HORIZON-CL5-2026-02-D3-01 - HORIZON-IA:€33,000,000, around €11,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D3-02 - HORIZON-RIA:€8,000,000, around €4,000,000 contribution, 2 grants
HORIZON-CL5-2026-02-D3-05 - HORIZON-IA:€15,000,000, around €7,500,000 contribution, 2 grants
HORIZON-CL5-2026-02-D3-07 - HORIZON-RIA:€15,000,000, around €5,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D3-08 - HORIZON-RIA:€15,000,000, around €5,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D3-10 - HORIZON-IA:€24,000,000, around €8,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D3-12 - HORIZON-RIA:€8,000,000, around €4,000,000 contribution, 2 grants
HORIZON-CL5-2026-02-D3-13 - HORIZON-PCP:€20,000,000, around €20,000,000 contribution, 1 grant
HORIZON-CL5-2026-02-D3-14 - HORIZON-CSA:€6,000,000, around €2,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D3-18 - HORIZON-IA:€18,000,000, around €9,000,000 contribution, 2 grants
HORIZON-CL5-2026-02-D3-19 - HORIZON-IA:€16,000,000, around €8,000,000 contribution, 2 grants
HORIZON-CL5-2026-02-D3-20 - HORIZON-IA:€20,000,000, around €10,000,000 contribution, 2 grants
HORIZON-CL5-2026-02-D3-22 - HORIZON-IA:€18,000,000, around €9,000,000 contribution, 2 grants
HORIZON-CL5-2026-02-D3-24 - HORIZON-RIA:€18,000,000, around €6,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D4-01 - HORIZON-RIA:€15,000,000, around €5,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D4-02 - HORIZON-IA:€12,000,000, around €4,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D4-03 - HORIZON-RIA:€15,000,000, around €5,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D4-04 - HORIZON-IA:€15,000,000, around €5,000,000 contribution, 3 grants
HORIZON-CL5-2026-02-D4-05 - HORIZON-RIA:€12,000,000, around €4,000,000 contribution, 3 grants
HORIZON-CL5 - HORIZON-IA:€15,000,000, around €7,500,000 contribution, 2 grants
Partner search announcements are available for those looking to collaborate on this topic, and LEARs, Account Administrators, and self-registrants can publish partner requests on the portal.
The submission system is planned to open on September 16, 2025.
Applicants are encouraged to read all provisions carefully before preparing their application and to consult the Online Manual, Horizon Europe Programme Guide, Funding & Tenders Portal FAQ, Research Enquiry Service, National Contact Points (NCPs), Enterprise Europe Network, IT Helpdesk, European IPR Helpdesk, CEN-CENELEC Research Helpdesk, ETSI Research Helpdesk, and the European Charter for Researchers for guidance and support.
In summary, this Horizon Europe call focuses on funding innovation actions that demonstrate effective strategies for integrating renewable energy sources into energy-intensive industries. The goal is to significantly reduce or eliminate fossil fuel use, improve energy efficiency, and decrease GHG emissions while maintaining or enhancing the global competitiveness of these industries. Projects should include physical demonstrations, numerical simulations, and a strong business model for the proposed solutions. The call provides funding through various instruments, including Innovation Actions, Research and Innovation Actions, Pre-commercial Procurement, and Coordination and Support Actions, each with specific budget allocations and expected outcomes. The call aims to drive the transition towards a more sustainable and environmentally friendly industrial sector in the EU and Associated Countries.
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Breakdown
Eligible Applicant Types:The eligible applicant types are not explicitly stated in the provided text. However, based on the nature of Horizon Europe calls, eligible applicants typically include: startups, SMEs, large enterprises, universities, research institutes, nonprofit organizations, governmental organizations, and other legal entities capable of conducting research and innovation activities. The specific eligibility criteria are detailed in Annex B of the Work Programme General Annexes and the Horizon Europe Programme Guide.
Funding Type:The primary funding type is a grant, specifically through HORIZON Innovation Actions (HORIZON-IA), HORIZON Research and Innovation Actions (HORIZON-RIA), HORIZON Coordination and Support Actions (HORIZON-CSA) and HORIZON Pre-commercial Procurement (HORIZON-PCP). The type of Model Grant Agreement (MGA) is a HORIZON Action Grant Budget-Based [HORIZON-AG].
Consortium Requirement:The text does not explicitly state whether a single applicant or a consortium is required. However, given the scope and scale of Horizon Europe projects, consortia are generally preferred, especially for Innovation Actions and Research and Innovation Actions. The partner search announcements suggest that collaboration is encouraged.
Beneficiary Scope (Geographic Eligibility):The primary geographic eligibility includes the EU and Associated Countries. The text also mentions that non-EU/non-Associated Countries may have specific provisions for funding their participants in Horizon Europe projects, as detailed in the Horizon Europe Programme Guide.
Target Sector:The primary target sector is energy, specifically focusing on phasing out fossil fuels in energy-intensive industries through the efficient integration of renewable energy sources. This includes renewable thermal, electrical, bioenergy, and other renewable energy sources in industrial processes, heating, cooling, and power generation. It also targets climate, by aiming to reduce GHG emissions and other pollutants.
Mentioned Countries:The opportunity explicitly mentions the EU and Associated Countries. It also refers to non-EU and non-Associated Countries that may have specific funding provisions.
Project Stage:The project stage varies depending on the type of action. Innovation Actions (IA) typically focus on demonstration and validation, aiming for Technology Readiness Levels (TRL) 5-7, while Research and Innovation Actions (RIA) focus on earlier stages of research and development, targeting TRL 3-5. Pre-commercial Procurement (PCP) focuses on the procurement of R&D services. The call aims to physically demonstrate solutions in an industrial environment and scale them up through numerical simulations.
Funding Amount:The funding amounts vary widely depending on the specific topic and type of action. The indicative budgets for the listed topics range from €6,000,000 to €33,000,000. The indicative number of grants per topic ranges from 1 to 3.
HORIZON-CL5-2026-02-D3-01 - HORIZON-IA:€33,000,000 (around €11,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D3-02 - HORIZON-RIA:€8,000,000 (around €4,000,000 per grant, 2 grants)
HORIZON-CL5-2026-02-D3-05 - HORIZON-IA:€15,000,000 (around €7,500,000 per grant, 2 grants)
HORIZON-CL5-2026-02-D3-07 - HORIZON-RIA:€15,000,000 (around €5,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D3-08 - HORIZON-RIA:€15,000,000 (around €5,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D3-10 - HORIZON-IA:€24,000,000 (around €8,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D3-12 - HORIZON-RIA:€8,000,000 (around €4,000,000 per grant, 2 grants)
HORIZON-CL5-2026-02-D3-13 - HORIZON-PCP:€20,000,000 (around €20,000,000 per grant, 1 grant)
HORIZON-CL5-2026-02-D3-14 - HORIZON-CSA:€6,000,000 (around €2,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D3-18 - HORIZON-IA:€18,000,000 (around €9,000,000 per grant, 2 grants)
HORIZON-CL5-2026-02-D3-19 - HORIZON-IA:€16,000,000 (around €8,000,000 per grant, 2 grants)
HORIZON-CL5-2026-02-D3-20 - HORIZON-IA:€20,000,000 (around €10,000,000 per grant, 2 grants)
HORIZON-CL5-2026-02-D3-22 - HORIZON-IA:€18,000,000 (around €9,000,000 per grant, 2 grants)
HORIZON-CL5-2026-02-D3-24 - HORIZON-RIA:€18,000,000 (around €6,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D4-01 - HORIZON-RIA:€15,000,000 (around €5,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D4-02 - HORIZON-IA:€12,000,000 (around €4,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D4-03 - HORIZON-RIA:€15,000,000 (around €5,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D4-04 - HORIZON-IA:€15,000,000 (around €5,000,000 per grant, 3 grants)
HORIZON-CL5-2026-02-D4-05 - HORIZON-RIA:€12,000,000 (around €4,000,000 per grant, 3 grants)
HORIZON-CL5 - HORIZON-IA:€15,000,000 (around €7,500,000 per grant, 2 grants)
Application Type:The application type is an open call with a single-stage submission process.
Nature of Support:The beneficiaries will receive money in the form of grants to support their research, innovation, coordination, and pre-commercial procurement activities.
Application Stages:The application process consists of a single stage.
Success Rates:The success rates are not explicitly mentioned, but given the competitive nature of Horizon Europe calls, success rates are generally below 10 to 39%.
Co-funding Requirement:The text does not explicitly mention a co-funding requirement. However, depending on the specific type of action and the legal status of the applicant, co-funding may be required. This information would be detailed in the specific call conditions and the Horizon Europe Programme Guide.
Summary:This Horizon Europe Cluster 5 call (HORIZON-CL5-2026-02) focuses on "Phase out fossil fuel in energy intensive industries through the efficient integration of renewable energy sources." It aims to fund projects that demonstrate innovative solutions for integrating renewable energy sources into industrial processes to reduce fossil fuel consumption and GHG emissions. The call includes various types of actions: Innovation Actions (IA) for demonstrating and validating technologies, Research and Innovation Actions (RIA) for earlier-stage research and development, Coordination and Support Actions (CSA) for networking and dissemination, and Pre-commercial Procurement (PCP) for procuring R&D services. The geographic scope primarily targets the EU and Associated Countries, with potential provisions for non-EU/non-Associated Countries. The funding amounts vary from €6 million to €33 million per topic, with a single-stage application process and a planned opening date of September 16, 2025, and a deadline of February 17, 2026. Applicants are encouraged to form consortia and develop strong business models and exploitation strategies for their proposed solutions. The call seeks to improve energy efficiency, reduce pollution, and enhance the global competitiveness of industries in the EU and Associated Countries.
Short Summary
Impact The funding aims to develop and demonstrate innovative solutions for integrating renewable energy sources into industrial processes to reduce and eventually eliminate the use of fossil fuels, thereby improving energy efficiency and reducing greenhouse gas emissions. | Impact | The funding aims to develop and demonstrate innovative solutions for integrating renewable energy sources into industrial processes to reduce and eventually eliminate the use of fossil fuels, thereby improving energy efficiency and reducing greenhouse gas emissions. |
Applicant Applicants should possess expertise in renewable energy integration, industrial processes, and business model development, with capabilities in research, innovation, and project management. | Applicant | Applicants should possess expertise in renewable energy integration, industrial processes, and business model development, with capabilities in research, innovation, and project management. |
Developments The funding will support projects focused on the integration of renewable thermal, electrical, and bioenergy sources in energy-intensive industries, targeting the development and demonstration phases. | Developments | The funding will support projects focused on the integration of renewable thermal, electrical, and bioenergy sources in energy-intensive industries, targeting the development and demonstration phases. |
Applicant Type This funding is designed for startups, SMEs, large enterprises, universities, research institutes, and public-private partnerships involved in research and innovation activities. | Applicant Type | This funding is designed for startups, SMEs, large enterprises, universities, research institutes, and public-private partnerships involved in research and innovation activities. |
Consortium The funding requires consortium applications, encouraging collaboration among various entities. | Consortium | The funding requires consortium applications, encouraging collaboration among various entities. |
Funding Amount Each project can receive funding of €5,000,000, with a total budget of €15,000,000 allocated for three expected grants. | Funding Amount | Each project can receive funding of €5,000,000, with a total budget of €15,000,000 allocated for three expected grants. |
Countries The funding is relevant for EU member states, EEA countries, EU candidate countries, and widening countries, as it aims to support projects within these regions. | Countries | The funding is relevant for EU member states, EEA countries, EU candidate countries, and widening countries, as it aims to support projects within these regions. |
Industry This funding targets the energy, climate, and manufacturing sectors, specifically focusing on the transition from fossil fuels to renewable energy sources. | Industry | This funding targets the energy, climate, and manufacturing sectors, specifically focusing on the transition from fossil fuels to renewable energy sources. |
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