Iberdrola has secured funding for eight industrial decarbonisation projects under the first European auction dedicated to reducing industrial heat emissions through the European Commission’s Innovation Fund. The award marks a significant step in advancing the electrification of industrial processes and accelerating the replacement of fossil fuels with renewable energy across energy-intensive industries.
The selected projects focus on the direct electrification of industrial heat through the use of electric boilers powered by renewable electricity. Together, the initiatives are expected to require approximately 240 GWh of renewable electricity annually, helping participating industries significantly reduce carbon dioxide emissions associated with their operations.
The projects will be implemented across a diverse range of sectors, including food and beverage production, chemicals, manufacturing, tire production, mining, and other industrial activities with high energy requirements. By replacing fossil fuel-based heating systems with electrified solutions, the initiatives aim to improve energy efficiency, lower emissions, and enhance the long-term sustainability of industrial operations.
The funding reinforces Iberdrola’s position as a key partner in industrial decarbonisation, supporting companies as they transition toward cleaner energy sources. Through electrification and renewable energy integration, businesses can reduce their dependence on fossil fuels, limit exposure to energy price volatility, and align with increasingly stringent European climate and sustainability regulations.
The European auction, administered by the European Climate, Infrastructure and Environment Executive Agency (CINEA), selected a total of 65 projects across ten European countries. Nearly €400 million in financial support was allocated through the programme, highlighting the European Union’s commitment to accelerating industrial decarbonisation.Spain emerged as the leading participant in the initiative, accounting for 24 of the 65 selected projects.
Iberdrola’s eight successful projects will receive nearly €50 million in funding, representing approximately 35% of the total support awarded in Spain. The substantial allocation reflects the scale and maturity of the projects as well as their potential contribution to reducing industrial emissions.
Beyond their environmental benefits, the projects are expected to strengthen the competitiveness of participating companies by enabling access to more stable and predictable energy costs. Long-term energy agreements associated with the projects will provide greater visibility over future energy expenses while reducing dependence on fluctuating fossil fuel markets.
A key component of the programme involves the implementation of long-term Power Purchase Agreements (PPAs), which will support the deployment of more than 150 MW of renewable energy capacity. These agreements ensure that the electricity required for industrial heat electrification is sourced from renewable generation assets, further contributing to emissions reductions throughout the value chain.
The new projects build upon Iberdrola’s existing efforts to promote renewable energy adoption within industry. The company has already signed two additional PPAs in Spain with businesses operating in the metallurgical and data centre sectors, representing a combined renewable energy capacity of approximately 90 MW.Iberdrola’s approach extends beyond simply supplying renewable electricity.
The company offers a comprehensive decarbonisation solution that includes the design, construction, operation, and maintenance of electrified heat systems, alongside the provision of renewable power. This integrated model is intended to simplify the transition process for industrial customers while minimizing disruptions to ongoing production activities.
According to Fernando Mateo, Head of Industrial Decarbonisation at Iberdrola, the funding provides an opportunity to accelerate mature and practical projects capable of delivering immediate benefits to industrial customers. He noted that the initiatives will help companies lower heating costs, reduce exposure to fossil fuel price fluctuations, and make meaningful progress toward their decarbonisation objectives.
Mateo also emphasized that direct electrification of industrial heat represents one of the most effective methods for achieving short-term emissions reductions in energy-intensive sectors. He pointed out that the strong response to the European auction demonstrates the existence of a substantial pipeline of viable projects that can be deployed in the near future.The awards come at a pivotal time for industrial electrification across Europe.
As governments and businesses seek practical pathways to meet climate targets, industrial heat has become an increasingly important focus area due to its significant contribution to greenhouse gas emissions. Electrification, particularly when powered by renewable energy, is widely viewed as a critical solution for reducing emissions in sectors that have historically relied heavily on fossil fuels.
Recognizing the importance of these efforts, the European Commission is already preparing a second round of industrial heat auctions, expected to be launched in the coming months. The upcoming programme aims to further accelerate the adoption of clean heating technologies and support the transition away from fossil-fuel-based industrial processes.
Through initiatives such as these, Iberdrola continues to work closely with energy-intensive industries to implement clean energy technologies, improve operational efficiency, and strengthen industrial competitiveness. By combining renewable energy generation with innovative electrification solutions, the company is helping to advance Europe’s broader goal of building a more sustainable, resilient, and low-carbon industrial economy.
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