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.
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
| Mechanism | Detail |
|---|---|
| Award mechanism | Competitive bidding |
| Subsidy type | Fixed premium |
| Payment basis | Per tonne of direct CO₂ emissions abated |
| Support duration | Maximum 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.
Eligibility and Scope
| Item | Detail |
|---|---|
| Project sizes | All sizes |
| Eligible sectors | Every industrial sector across the EEA |
| Process type | Continuous industrial processes and flexibility solutions |
| Minimum heat threshold | Some 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.
| Date | Country |
|---|---|
| 01 October 2026 | Ireland |
| 05 October 2026 | Romania |
| 06 October 2026 | Spain |
| 07 October 2026 | Norway, Sweden, Finland, Denmark |
| 13 October 2026 | Germany, Austria |
| 20 October 2026 | Netherlands, Belgium, Luxembourg |
| 27 October 2026 | Czechia, Slovakia |
| 29 October 2026 | Italy |
| 30 October 2026 | France |
Timeline
| Date | Milestone |
|---|---|
| May 2026 | Draft Terms and Conditions published for consultation |
| July 2026 | Stakeholder consultation event |
| 24 September 2026 | Final Terms and Conditions published |
| October 2026 | National information webinars |
| December 2026 | Call planned to open |
| February 2027 | Call planned to close |
Always verify current dates in the official call document.
Prepare for the IF26 Heat Auction
Official sources
- IF26 Heat Auction official page
- Final Terms and Conditions: linked from the official page
- EU Funding & Tenders Portal
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.
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.