Stakeholder Consultation on the new Innovation Fund auction on industrial process heat decarbonization

In May 2025, IOGP Europe responded to the European Commission’s stakeholder consultation on the design of a new Innovation Fund auction dedicated to the decarbonisation of industrial process heat, expected to launch in December 2025. 

While welcoming the initiative, IOGP Europe highlighted the need for a more technology-neutral approach, stressing that focusing solely on electrification-based solutions risks excluding other cost-effective, low-carbon pathways such as natural gas with CCS or blue hydrogen. These solutions, we argue, are vital for a realistic and inclusive transition in carbon-intensive industrial sectors. 

Our contribution also emphasised the importance of: 

• Auction design flexibility, including eligibility for a broader range of costs, 
• Longer-term visibility for project developers, 
• Balanced treatment of indirect emissions and grid impacts. 

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