Spanish energy company Iberdrola has secured nearly €50 million in funding through the European Commission’s first Innovation Fund auction dedicated to industrial heat decarbonisation.
The company was awarded support for eight projects aimed at helping energy-intensive industries replace fossil fuel-based heating systems with renewable electricity. The projects will deploy electric boilers across large industrial facilities, factories and mining operations, supporting efforts to reduce carbon emissions from industrial processes.
According to Iberdrola, the installations are expected to consume approximately 240 GWh of renewable electricity annually, enabling participating companies to significantly lower their emissions while improving energy efficiency.
The projects will be backed by long-term power purchase agreements (PPAs), supporting the development of more than 150 MW of renewable energy capacity. Iberdrola said these agreements will provide industrial customers with greater cost certainty and reduce exposure to fluctuations in fossil fuel prices.
As part of the initiative, the company will deliver an integrated service covering the design, construction and operation of the electrified heat systems, along with the supply of renewable electricity required for their operation.
The projects were among 65 selected across ten European countries under the European Commission’s first industrial heat decarbonisation auction, managed by the European Climate, Infrastructure and Environment Executive Agency (CINEA). The programme allocated nearly €400 million in total funding.
Spain secured 24 of the 65 successful projects, the highest number among participating countries. Iberdrola said its awards account for approximately 35% of the funding allocated to Spanish projects.
The European Commission is expected to launch a second industrial heat decarbonisation auction in the coming months, with a planned budget of €1 billion, further accelerating the transition to low-carbon industrial operations across Europe.
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