Commission greenlights EUR 50 million scheme to support decarbonisation of industrial process heat in Spain
The Commission has approved a EUR 50 million Spanish scheme to support the decarbonisation of industrial process heat through innovative technologies, including electrification and renewable heat solutions. The measure will be implemented via the “Auctions-as-a-Service” (AaaS) tool under the Innovation Fund 2025 Heat Auction. It is the first AaaS project outside of the hydrogen sector.
Aid will be granted as a fixed premium per tonne of CO₂ avoided through a competitive bidding process, covering the additional costs of replacing fossil-based heat production. The scheme, financed by the Recovery and Resilience Facility, will run until 31 December 2026, with payments linked to verified emissions reductions.
The Commission found the measure in line with EU State aid rules, in particular Article 107(3)(c) TFEU and the 2022 Climate, Energy and Environmental Aid Guidelines, concluding that it is necessary, proportionate and has limited impact on competition.
For more information, see Commission’s PR.