Less than a month after EHPA and industry partners called for a recurring EU Innovation Fund Heat Auction, the European Commission today confirmed that a second such auction will take place later this year.
In 2025, the EU Commission launched a €1 billion pilot initiative to accelerate the decarbonisation of industrial process heat. It is funded by revenues from the EU’s Emissions Trading System.
The announcement, made at the EU Cleantech Conference, organised by the European Climate, Infrastructure and Environment Executive Agency (CINEA) and the Directorate-General for Climate Action (DG CLIMA) to connect EU-funded projects, industry and policymakers, sends a strong signal that industrial heat electrification with heat pumps is a core for Europe’s competitiveness, industrial resilience and energy security.
This was also apparent in Commission President Ursula von der Leyen’s opening speech, when she referred to EHPA’s recent research: “Two-thirds of Europe’s heat pumps are made here.”
Jozefien Vanbecelaere, EHPA Policy Director, said:
“This is exactly the kind of political signal Europe’s industry needs. Today’s announcement shows that the European Commission recognises industrial heat pumps as a strategic clean technology for competitiveness, resilience and decarbonisation. We called for a recurring Heat Auction, and we are pleased to see our call become an EU commitment so quickly. The next step is to ensure the scheme becomes simpler, more predictableand accessible to a broader range of industrial projects.”
In our joint letter with seven organisations, EHPA urged the Commission to make the Heat Auction recurring, to provide industry with greater predictability for investments.
EHPA therefore welcomes the Commission’s commitment to continue the scheme and calls for an even stronger and more predictable framework under the Electrification Action Plan, including an increased budget for future auctions.
EHPA also welcomes the opportunity to improve the scheme in line with industry recommendations already shared with the Commission. Key priorities include:
- early publication of the auction timeline and terms and conditions, allowing projects sufficient time to prepare;
- lowering the minimum project threshold below the current 3 MW level, enabling wider participation from sectors such as food and drink, where many projects fall below this limit;
- further simplifying the application process.
Large heat pumps can transform industrial process heat and district heating systems, cutting fossil fuel dependence while strengthening Europe’s industrial resilience and competitiveness.
EHPA is already supporting deployment through seven ongoing EU-funded industrial heat pump projects, with three additional projects launching soon across sectors including food and drink, paper and pulp and geothermal applications.
To help turn projects into reality, EHPA recently launched the “Heat BIG: implementing industrial and district heating solutions” webinar series, supported by Turboden. The series brings together experts and end users to showcase how large heat pumps can be selected, financed, installed and operated in industrial and district heating applications.
Europe already has the technology, manufacturers and industrial projects ready to scale. Today’s announcement is an important step towards accelerating industrial electrification and ensuring Europe builds and manufactures the clean technologies of the future.
Contact:
Daniela Floris
Communications Officer
daniela.floris@ehpa.org
Tel: +32 499 71 75 39
