# LLM Context URL: https://weeg.it/en/news/innovation-fund-2025-how-to-access-if25-heat-auction-grants-for-industrial-decarbonization/ # Innovation Fund 2025: how to access IF25 Heat Auction grants for industrial decarbonization > The article outlines the Innovation Fund 2025 and the IF25 Heat reverse auction, including eligible sectors and technologies, the stated €1 billion auction budget, competitive-award criteria, and White Energy Group's proposed support for industrial decarbonization projects. ## Page details - **Source language:** English - **Content type:** Post - **Original title:** Innovation Fund 2025: how to access IF25 Heat Auction grants for industrial decarbonization - **English title:** Innovation Fund 2025: how to access IF25 Heat Auction grants for industrial decarbonization - **Source URL:** https://weeg.it/en/news/innovation-fund-2025-how-to-access-if25-heat-auction-grants-for-industrial-decarbonization/ - **Summary:** Overview of Innovation Fund 2025 and the IF25 Heat Auction for industrial heat decarbonization, with eligibility, technologies, budget categories, auction mechanics and ESCo support described by White Energy Group. ## What the Innovation Fund 2025 is The article describes the **Innovation Fund** as an EU funding program for the demonstration and commercial deployment of low-carbon technologies, with more than **€40 billion** earmarked for industrial decarbonization. It states that the program is managed by the European Commission's DG Climate Action and implemented by CINEA, supporting the European objective of climate neutrality by 2050. ## Who can participate The article identifies potential participants among enterprises and public or private entities active in areas including: - Energy-intensive industries such as cement, steel, chemicals, glass and ceramics - Carbon capture, utilization and storage projects - Renewable-energy technologies - Energy accumulation and storage systems - Low-emission maritime, aviation and road transport ## IF25 Heat Auction The article states that the **IF25 Heat Reverse Auction** was expected to open between **December 2025 and February 2026** to support projects that decarbonize heat in industrial processes. ### Eligible technologies Technologies listed as eligible include: - High-temperature heat pumps - Electric heat generators and electric heat-storage systems - Process-heat systems using electrical resistance, electromagnetic, dielectric or plasma heating - Solar thermal or geothermal technologies for industrial processes - Hybrid projects combining multiple technologies ## Budget and categories The article describes a total budget of **€1 billion**, divided into three categories: - **€150 million** for heat between 100°C and 400°C and capacity from 3 MWth to 5 MWth, with a stated maximum of €100 million per project - **€350 million** for heat between 100°C and 400°C and capacity above 5 MWth, with a stated maximum of €100 million per project - **€500 million** for heat above 400°C, with a stated maximum of €250 million per project It states that support could potentially cover up to 100% of capital expenditure and that cumulation with local grants for capital and operating expenses is not allowed. ## How the competitive auction works According to the article, companies compete by requesting the lowest public subsidy needed to achieve a specified output. Grants are allocated through a downward auction based on the cost of avoided CO2. Two parameters are highlighted: 1. The amount of CO2-emission reduction assessed over five years of operation using ETS parameters 2. The percentage contribution requested relative to eligible expenditure ### Practical example The article gives an example of a heat-pump project above 3 MWth and 100°C with: - **€3 million** investment - **3,000 tCO2eq/year** expected reduction - **15,000 tCO2eq** reduction over five years - **€2 million** requested contribution, equal to 66% of investment costs - An indicated avoided-CO2 support cost of **€133/tCO2eq** The article states that projects with lower support cost per tonne of avoided CO2 are favored. ## Role of ESCos The article states that CO2 savings at application stage are estimated by a qualified independent third party such as an ESCo and must subsequently be measured using certified instrumentation. It also states that grants are disbursed over the first five years in semi-annual installments based on measured and certified thermal-energy production. ## White Energy Group support White Energy Group presents consulting and ESCo support for Innovation Fund applications, including: - Technical and financial assistance - Preparation of documentation to European Commission requirements - Identification of processes suitable for improvement and electrification - Technology selection for decarbonization - Project-feasibility checks - Ex-ante and ex-post measurements - Documentation preparation intended to improve funding eligibility - Periodic reporting of intervention performance and emissions reductions The article also connects this support with White Energy Group's **Green Heat Energy Performance Contract** and **Green Solar PPA** offerings. ## Related links - [Innovation Fund information](https://www.ets.minambiente.it/InnovationFund) - [CINEA Innovation Fund](https://cinea.ec.europa.eu/programmes/innovation-fund_en) - [White Energy Group](https://weeg.it/en/) - [Contact White Energy Group](https://weeg.it/en/contact/) - [ESCo solutions](https://weeg.it/en/energy-solutions-for-businesses/esco/) - [Green Heat](https://weeg.it/en/energy-solutions-for-businesses/esco/renewable-thermal-plants/) - [Green Solar PPA](https://weeg.it/en/energy-solutions-for-businesses/esco/renewable-energy-with-ppa-contracts-green-solar-ppas/)