Iberdrola projects to drive 150MW renewable energy for heat

Iberdrola has obtained European aid for eight heat electrification projects in energy intensive sectors where it will ultimately make it possible to replace fossil fuels with renewable energy through electric boilers.

“Iberdrola has been awarded eight projects in the first European auction for the decarbonisation of industrial heat promoted by the European Commission's 'Innovation Fund', an initiative that will accelerate the replacement of fossil fuels with renewable energy in energy-intensive industrial sectors,” said the Spain-based utility company.

The initiatives, based on the direct electrification of heat using electric boilers, will require approximately 240GWh per year of electricity from renewable sources.

“The programme will significantly reduce carbon dioxide emissions associated with industrial processes with high energy demand, strengthening the competitiveness of the participating companies,” said Iberdrola.

The projects will be deployed in sectors such as food and beverages, chemicals, manufacturing, tyres, mining and other industrial areas.

Projects selected across Europe

The European auction, managed by the European Climate, Infrastructure and Environment Executive Agency (CINEA), has selected 65 projects in 10 European countries, with nearly €400 million in aid. 

Spain leads the call with 24 of the 65 awards.

In the case of Iberdrola, the set of selected initiatives adds up to nearly €50 million in aid, which represents approximately 35% of the total granted in Spain and represents a significant boost to accelerate the electrification of industrial heat in the country.

In addition to reducing emissions, the initiatives will allow participating companies to move towards more efficient, competitive and resilient energy models, thanks to long-term contracts that provide stability and visibility on the cost of decarbonised heat.

The execution of these projects includes long-term power purchase agreements (PPAs) that will mobilise more than 150MW of renewable energy, said Iberdrola.

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Advancing decarbonisation

These actions are in addition to two other PPAs signed by Iberdrola in Spain with companies in the metallurgical and data centre sectors, which together represent another 90MW of renewable energy.

"This aid allows us to accelerate real, mature initiatives that improve the competitiveness of our customers, reduce their cost of heat, reduce their exposure to the volatility of fossil fuels and advance decarbonisation objectives," said Fernando Mateo, head of industrial decarbonisation at Iberdrola.

"The direct electrification of industrial heat is one of the most effective levers to cut emissions in the short term, and the European auction shows that there is a solid portfolio of viable projects to be deployed from now on," he said.

The award comes at a key moment for electrification in Europe.

The European Commission is already working on a second call for industrial heat auctions scheduled for the coming months, with the aim of continuing to accelerate the replacement of fossil heat with clean solutions and technologies.