HEAT IF 26: €1 billion European auction, open to nuclear power for the first time

The European Commission published the final terms and conditions for its second Europe-wide auction dedicated to the decarbonisation of heat in industrial processes (Innovation Fund 26 Heat auction) on 24 September 2026. The auction, with a budget of €1 billion, is expected to open in early December 2026. For the first time, it includes nuclear technologies, notably Small Modular Reactors, and lowers the temperature threshold for eligible projects: one of the three "auction baskets", with a budget of €100 million, is intended for industrial heat projects operating at temperatures between 80 and 100 degrees.

Announced as part of the ‘Clean Industrial Deal’, this auction will stimulate investment in local clean energy solutions, strengthen resilience and reduce energy prices. It follows…