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The European Commission selected eight proposals from Iberdrola within the first auction for the decarbonization of industrial heat funded by the Innovation Fund. This award will channel nearly 50 million euros in direct aid to the energy company. The allocated capital represents 35% of the total funds destined for Spain in this international call.
The decarbonization of European industrial heat
The approved initiatives focus on replacing fuel-based systems with high-capacity electric boilers. This technological deployment will require an estimated annual supply of 240 gigawatt-hours of renewable electricity. The actions cover highly energy-intensive sectors such as food, chemicals, mining, and tire manufacturing.
The development of thermal infrastructure will be structured through long-term energy supply agreements known as Power Purchase Agreements. These commercial contracts will provide tariff stability against price variations in natural gas markets. The implementation of this energy model will mobilize a total of 150 megawatts of renewable power in the associated industrial plants.
Additionally, the corporation integrated two other supply agreements in national territory with companies in the metallurgical and data center sectors. These strategic alliances will add 90 complementary renewable megawatts to the firm’s portfolio. In this way, the offer of comprehensive solutions covers everything from the design of the thermal installation to continuous operation and clean electricity supply.
The management of the public auction was handled by the European Climate, Infrastructure and Environment Executive Agency. The entity distributed nearly 400 million euros among 65 projects spread across ten EU countries. Spain led the reception of approved proposals with 24 awards in total.
The head of industrial decarbonization at Iberdrola, Fernando Mateo, detailed that the subsidies accelerate mature plans that enhance the competitiveness of the business fabric. The executive noted that direct electrification constitutes the fastest mechanism for reducing emissions in the short term. Likewise, European authorities are preparing a second specific auction for industrial heat in the coming months with the goal of consolidating this energy and regulatory transition.
Source and photo: Iberdrola
