The Innovation Fund is the largest grant programme for CO₂-reducing / low-carbon technologies in the EU. The Innovation Fund has € 40 billion available between 2020-2030 and opens regular calls and auctions every year. The programme supports innovation in energy-intensive industries, energy industries (renewable energy, energy storage, CCUS) and Net-zero mobility and buildings. New regular grant calls are expected in 2025 for Net Zero Technologies and Batteries. Next to that, the Innovation Fund is launching the 2025 pilot Industrial Heat Auction.

Regular Innovation Fund calls 2025

New Innovation Fund regular grant calls are expected in 2025 for Net Zero Technologies and Batteries:

Net Zero Technologies in 2025

The general call for Net Zero Technologies aims to support decarbonization initiatives across various scales. Also projects focusing on the manufacturing of components for renewable energy, energy storage, heat pumps and hydrogen production are eligible within this call. Projects are assessed based on their potential to reduce greenhouse gas emissions, their degree of innovativeness, maturity, replicability and cost-effectiveness.

Batteries 2025

The Innovation Fund Batteries call supports projects that can produce innovative electric vehicles battery cells for deploy innovative manufacturing techniques, processes and technologies.

IF25 Pilot Heat Auction

In 2025, the Clean Industrial Deal was launched. The Clean Industrial Deal announced a new auction for decarbonisation of key industrial processes: Innovation Fund 2025 Pilot Heat Auction. It’s based on the experience of the hydrogen auctions of the Innovation Fund. A budget of € 1 billion has been allocated for this auction to support projects that decarbonise industrial process heat through innovative elektrification technologies such as heat pumps, electric boilers, esistance heating, induction heating, plasma heating and other solutions, as well as renewable heat solutions (solar thermal and geothermal). Companies in various sector are eligible, not only larger companies but also smaller companies and mid-caps.

EU renewable hydrogen auction

Since 2023, the European Commission has also opened an auction for producing renewable energy. This auction falls under the Innovation Fund and bidders can submit a fixed premium per kilogram of hydrogen produced. This bridges the gap between the price of production and the price consumers are willing to pay. This is the EC’s way of scaling up hydrogen production in Europe. The first auction (IF23 Auction) was completed last year, the second auction (IF24 Auction) opened for bids on 3 December 2024.  In 2024, € 1.2 billion was available within the hydrogen auction, of which € 200 million is intended for applications in the maritime sector.

About the Innovation Fund

The Innovation Fund is one of Europe’s largest programmes focused on demonstrating innovative CO2-reducing / low carbon technologies. Its purpose is to support the European Commission’s  (EC) vision of a climate neutral Europe by 2050 by bringing the most successful and innovative technologies to the market. The Fund offers financial support in abating greenhouse gas (GHG) emissions, making the world cleaner and more sustainable. The Innovation Fund has € 40 billion budget available between 2020-2030.

Core value: Emission avoidance within projects

The programme’s core value is to avoid gas emissions. The emissions avoidance calculations will likely be compared to reference scenarios either based on the benchmarks within the EU Emission Trading System (ETS) or from similar projects. It is therefore important your project delivers at least 75% of the emissions avoidance calculated in order to receive the full grant amount.

More information or interested in applying for the Innovation Fund?

Apply for funding for your low-carbon technology. Need help with drawing up a strong application? Our specialists would be pleased to support you. Please do not hesitate to contact us via info@hezelburcht.com or 088 495 20 00 for an introduction meeting