- Iberdrola won eight projects in the European Commission’s first auction for decarbonising industrial heat, securing almost €50 million in grants.
- The projects will require about 240 GWh of renewable electricity per year and will mobilise more than 150 MW of renewable capacity through long‑term power‑purchase agreements.
- The initiatives use electric boilers to electrify heat in sectors such as food and beverages, chemicals, manufacturing, mining and other heavy industries.
Spain’s Iberdrola has emerged as the biggest winner in the European Commission’s first Innovation Fund auction for industrial heat decarbonisation.
The company secured eight projects that will electrify heat in energy‑intensive industries, winning nearly €50 million in EU grants. The funding will support installations of electric boilers across sectors ranging from food and chemicals to manufacturing and mining, replacing fossil fuel fired heat and cutting carbon emissions.
According to the Spanish news outlet Atalayar, the initiatives will require about 240 GWh of renewable electricity annually and will be backed by long‑term power‑purchase agreements that mobilise more than 150 MW of renewable energy.
The electrification projects are part of Iberdrola’s broader strategy to support industrial clients through turnkey decarbonisation solutions, from design and construction to energy supply. The company argues that electrifying heat will not only reduce emissions but also shield firms from volatile fossil‑fuel prices and improve competitiveness.
The EU’s Innovation Fund auction allocated nearly €400 million across 65 projects in ten European countries, with Spain receiving 24 awards. Iberdrola’s eight projects account for roughly 35 % of the funding awarded in Spain, underlining the company’s leadership in industrial electrification.
The projects complement two recent power‑purchase agreements Iberdrola signed with metallurgical and data centre customers for another 90 MW of renewable capacity. Together, these initiatives will mobilise over 240 MW of new renewables and accelerate the shift away from gas and oil‑fired process heat.
Iberdrola’s success highlights the growing opportunity in electrifying industrial heat, an area that has lagged behind power generation in broader decarbonisation efforts. The EU funding demonstrates that policymakers are willing to subsidise early movers, and the projects show how long‑term contracts can de‑risk investments.
UK firms exploring similar initiatives may look to Iberdrola’s model – bundling electric boilers, renewable PPAs and financing – as a template for decarbonising cement, chemicals and other hard‑to‑abate sectors.
