The European Commission has announced the opening of three new funding opportunities under the Innovation Fund, with a total budget of €5.2 billion.
Driving Europe’s clean industrial transformation
The call for net-zero emission technologies (IF25 NZT call) is designed to overcome investment gaps, attract public and private capital, and strengthen Europe’s leadership in the production and deployment of clean technologies.
Within the planned budget of €2.9 billion, support will be given to decarbonization projects that demonstrate highly innovative technologies and processes, while being sufficiently mature and having significant potential to reduce greenhouse gas (GHG) emissions. Projects of various scales are eligible, as well as initiatives focused on the production of renewable energy components, energy storage, heat pumps, and hydrogen production, including batteries for electric vehicles.
Recognizing that small-scale innovation can play an important role in Europe’s decarbonization efforts, a new special bonus point will be introduced for projects coordinated and implemented solely by SMEs.
The call for applications for IF25 NZT is open until April 23, 2026. Applicants are encouraged to attend the information day, which will take place on December 16. Successful applicants must sign grant agreements by the first quarter of 2027.
Supporting industrial transformation through hydrogen трансформация чрез водород
Чистият водород е важна алтернатива за заместване на изкопаемите горива и все по-често се използва за декарбонизация на тежката промишленост и транспорта. С бюджет от 1,3 млрд. евро третият търг в рамките на Европейската водородна банка (IF25 Hydrogen Auction) е насочен към предоставяне на рентабилна подкрепа за производството на възобновяеми горива от небиологичен произход (RFNBO) – водород или електролитен нисковъглероден водород – в три области, включително новосъздадена категория за производители на водород с морски или авиационни крайни потребители.
Clean hydrogen is an important alternative to fossil fuels and is increasingly being used to decarbonize heavy industry and transport. With a budget of €1.3 billion, the third auction under the European Hydrogen Bank (IF25 Hydrogen Auction) aims to provide cost-effective support for the production of renewable fuels of non-biological origin (RFNBO) – hydrogen or electrolyte-based low-carbon hydrogen – in three areas, including a newly created category for hydrogen producers with maritime or aviation end users.
The projects selected in the auctions will receive support in the form of a fixed premium for certified hydrogen production for a maximum period of 10 years.
Tackling emissions with decarbonising industrial process heat
The first European auction for the decarbonization of industrial heat (IF25 Heat Auction) presents an important step in the creation of the future Industrial Decarbonization Bank. Up to €1 billion will be directed towards supporting electrified and directly renewable heat production, which currently accounts for three-quarters of industrial emissions. Support will be allocated through an auction for projects that can deliver the most cost-effective CO₂ emissions reductions by bridging the price gap between sustainable solutions and fossil fuel-based alternatives for industrial heat.
Open to projects of various scales and from all industrial sectors, the auction will support the implementation of technologies such as heat pumps, electric boilers, resistance and induction heaters, direct renewable heating solutions (solar thermal or geothermal energy), as well as hybrid projects combining different technologies.
The support is provided in the form of a fixed, results-based premium linked to certified decarbonized heat production and is paid for a maximum period of five years.
For the hydrogen and thermal energy auctions, participants can submit applications until February 19, 2026. Information days for the two tenders will be held on December 10, 2025. Successful participants are expected to sign grant agreements within nine months of the closing date of the call.
In addition, Member States have the possibility to leverage on the Innovation Fund’s evaluation process and a streamlined state aid approval process. Via the ‘Auctions-as-a-Service’ scheme, they are able to dedicate national funds to support projects that have passed the evaluation award criteria but were not selected for Innovation Fund funding due to budgetary limitations. Germany and Spain have confirmed their participation in Auctions-as-a-Service in these auctions. Germany will dedicate a further €1.3 billion in national funds to support RFNBO hydrogen production projects nationally. Spain will also dedicate a total of €465 million in national funds, of which €415 million will support hydrogen projects and an additional €50 million to support industrial heat decarbonisation projects.
