Opening soon Innovation Fund IF26 Heat Auction — auction for decarbonising industrial heat
The second European Economic Area-wide auction for industrial process heat has €1 billion from the Innovation Fund. Companies of any size can take part if they replace fossil fuels with electrification, solar or geothermal heat, or nuclear.
- Who can apply
- Industrial operators and project developers of any size, from all sectors, can apply…
- Total budget
- EUR 1 billion
- Funding amount
- The support is a fixed premium per tonne of CO2 reduced, paid for up to 5 years from entry into operation
- Submission period
- expected to open in early December 2026; the deadline has not been announced
Checked against official sources on · funder: European Commission · official source
The guide has not been published yet, but good applications are built before launch. Those who start when the call window opens usually miss out on it.
Who can apply
Industrial operators and project developers of any size, from all industrial sectors, can apply, with projects located in the European Economic Area, including Romania. The project must produce, in new capacity, process heat of at least 5 MWth at low temperature (80–100°C) or at least 3 MWth at medium temperature (100–400°C) or high temperature (above 400°C). The investment (CAPEX) must be at least 2.5 million euro.
What it covers
- Heat pumps, including mechanical vapour recompression
- Direct and indirect resistive heating
- Thermal storage
- Electromagnetic, dielectric and plasma heating
- Solar thermal or geothermal heat
- Innovative nuclear technologies, including small modular reactors
- Hybrid projects combining these technologies
We prepare your application before the window opens
- We analyse whether you qualify and under which programme exactly.
- We build the application: business plan, budget, supporting documents.
- We submit during the call window and follow the evaluation.
- We stay with you through the reimbursement file and final payment.
Frequently asked questions
Can Romanian companies take part in the IF26 Heat Auction?
Yes. The auction is open to projects of any size, from all industrial sectors in the European Economic Area, including those in Romania. The project must have at least 3 MWth, or 5 MWth at low temperature, and an investment of at least 2.5 million euro.
Is the IF26 Heat Auction open now?
No. On 24 September 2026, the European Commission published only the final terms. The call is expected to open in early December 2026, and the submission deadline has not yet been announced. Applications will be submitted via the Funding & Tenders Portal.
How is the amount received under the IF26 Heat Auction calculated?
The company bids a subsidy in euro per MWh of heat produced, and the form automatically converts it into euro per tonne of CO2 reduced. The maximum grant is the subsidy per MWh multiplied by the estimated annual output and by 5 years. Payments are made annually, based on the heat actually produced, as measured and verified by an independent third party. Consortia that include an SME can request payments every 6 months.
Can I use biomass or hydrogen in the IF26 Heat Auction?
No. The final terms explicitly exclude heat from biomass and hydrogen. Electrolysis, electric arc furnaces for steel, and heat for space heating or district heating are also ineligible. Only electrification, solar or geothermal heat, nuclear technologies and combinations of these are eligible.
How are bids ranked and what bonus is there?
Bids are ranked solely on price, in euro per tonne of CO2 reduced. Projects with energy storage, with heat pumps with a COP of at least 1.5, or with direct renewable or nuclear heat receive a 25% ranking bonus. The limit of 70% of subsidised operating hours does not apply to these projects either.
What guarantees and deadlines does the auction winner have?
The application must include a letter of intent from a bank. Projects invited to contract must submit a performance guarantee of 6% of the maximum grant. Financial close must be achieved within 2.5 years of signing the contract, and entry into operation must take place within 5 years at most. The grant cannot be combined with other public aid for the CAPEX or OPEX of the same project.
How long does it take to prepare the application?
It depends on the complexity of the project and the documents you already have. The first step is the eligibility analysis, which tells you what needs to be prepared.
What happens if I do not qualify?
We tell you before any contract is signed, and if another suitable programme exists, we point you to it.
Next step
We prepare your application before it opens — Innovation Fund IF26 Heat Auction — auction for industrial heat decarbonisation
Fill in the form and we will tell you whether you qualify. If you do not qualify under this programme, we will tell you which other one you could apply for — or that there is none, if that is the case.
or call us directly on 0755 167 167
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