Leveraging the Innovation Fund Heat Auction to decarbonise heat

Industrial heat accounts for roughly two-thirds of energy use in manufacturing, yet it remains one of the least discussed challenges in the energy transition. 

In this episode of the Energy Transitions podcast, Pamela Largue speaks with Daniel Galis, Europe Director at the Renewable Thermal Collaborative, about the European Innovation Fund's €1 billion Heat Auction and its role in accelerating industrial heat decarbonisation.

Galis explains how competitive auction mechanisms are being used to support renewable heat technologies, explores why electric boilers dominated the first funding round, and discusses the barriers facing heat pumps, geothermal and solar thermal solutions. 

He also highlights a critical challenge for Europe’s industrial future: high electricity prices.

In this episode of the Energy Transitions podcast, you will learn more about: 

• Why industrial heat is responsible for two-thirds of industrial energy consumption;
• The purpose and design of the European Innovation Fund Heat Auction;
• Lessons learned from the first auction round;
• Why electric boilers dominated successful applications;
• The advantages and challenges of industrial heat pumps;
• The role of solar thermal and geothermal technologies;
• Industrial sectors most likely to benefit from heat decarbonisation;
• How high electricity prices threaten industrial electrification;
• The connection between decarbonisation, competitiveness and energy security.

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Listen to previous episodes:

Are European energy policies resilient by design?
Strengthening European resilience to combat energy shocks

More about industrial decarbonisation:

Revolutionising ceramic firing in the METAWAVE project
How the humble rice husk could cut emissions in India’s iron ore industry