ENDE
Status: Planned – Last reviewed: 30 September 2026

IF26 Heat Auction: €1 Billion for Industrial Process Heat Decarbonisation

The IF26 Heat Auction is the second Innovation Fund heat auction. It launches in December 2026 with a planned budget of €1 billion raised from the auctioning of EU Emissions Trading System allowances. The Final Terms and Conditions were published on 24 September 2026.

The auction follows the IF25 heat pilot, which selected 65 proposals for funding.

Prepare for the IF26 Heat Auction Send us your process heat project summary

What the IF26 Heat Auction Funds

The auction funds technologies that decarbonise industrial process heat. Process heat refers to the energy used to generate medium and high temperatures for manufacturing activities in sectors such as chemicals, pulp and paper, steel, food and beverage, and cement.

The second edition expands eligibility to projects using heat from as low as 80°C and adds incentives for flexibility solutions that reduce pressure on the electricity system.

National contributions may top up the auction budget via the Auction-as-a-Service (AaaS) feature.

Eligible Technologies

Three categories are eligible:

Electrified technologies

Heat pumps, thermal storage, plasma torches, electric boilers.

Direct renewable heat

Solar thermal, geothermal.

Nuclear technologies

Small modular reactors (first time under a heat auction).

How the Auction Works

MechanismDetail
Award mechanismCompetitive bidding
Subsidy typeFixed premium
Payment basisPer tonne of direct CO₂ emissions abated
Support durationMaximum five years
Budget€1 billion planned

Successful bidders receive a fixed premium subsidy, linked and proportional to each tonne of direct CO₂ emissions abated, for a maximum of five years.

The Heat Auction uses a competitive bidding mechanism under which successful bidders receive support linked and proportional to each tonne of direct CO₂ emissions abated, for a maximum of five years.

The Final Terms and Conditions published on 24 September 2026 set the applicable participation and support framework for the auction.

Compare with the IF26 Hydrogen Auction

Eligibility and Scope

ItemDetail
Project sizesAll sizes
Eligible sectorsEvery industrial sector across the EEA
Process typeContinuous industrial processes and flexibility solutions
Minimum heat thresholdSome projects using heat from as low as 80°C

The auction serves projects that use continuous industrial processes and incentivises flexibility solutions that avoid electricity consumption in peak hours or technologies that do not require electricity.

National Information Webinars

Innovation Fund National Contact Points are organising national information webinars throughout October 2026. Attendance is open to all.

DateCountry
01 October 2026Ireland
05 October 2026Romania
06 October 2026Spain
07 October 2026Norway, Sweden, Finland, Denmark
13 October 2026Germany, Austria
20 October 2026Netherlands, Belgium, Luxembourg
27 October 2026Czechia, Slovakia
29 October 2026Italy
30 October 2026France

Timeline

DateMilestone
May 2026Draft Terms and Conditions published for consultation
July 2026Stakeholder consultation event
24 September 2026Final Terms and Conditions published
October 2026National information webinars
December 2026Call planned to open
February 2027Call planned to close

Always verify current dates in the official call document.

Prepare for the IF26 Heat Auction

Send us your process heat project summary

Official sources

FAQ

What does the IF26 Heat Auction fund?

Technologies that decarbonise industrial process heat, including electrified technologies, direct renewable heat and nuclear technologies.

What is the budget?

€1 billion planned, raised from the auctioning of EU ETS allowances.

What technologies are eligible?

Electrified technologies (heat pumps, thermal storage, plasma torches, electric boilers), direct renewable heat (solar thermal, geothermal) and nuclear technologies (small modular reactors).

How does the auction work?

Successful bidders receive a fixed premium linked and proportional to each tonne of direct CO₂ emissions abated, for a maximum of five years.

What is the minimum heat threshold?

Some projects using heat from as low as 80°C are eligible.

When does the Heat Auction open and close?

The Commission currently plans an opening in December 2026 and a closing in February 2027. Verify the final dates in the official Terms and Conditions.

Are there national information webinars?

Yes. National Contact Points are organising webinars throughout October 2026. Attendance is open to all.

What is Auction-as-a-Service?

A mechanism allowing national contributions to top up the auction budget using the Innovation Fund’s process.

All Innovation Fund calls

IF26 Heat Auction scope, timelines, eligibility and funding routes depend on the official Terms and Conditions and European Commission decisions. This page is for general information and does not constitute legal advice or a guarantee of funding.

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