en.Wedoany.com Reported - Spanish utility company Iberdrola has secured eight projects in the first European auction for industrial heat decarbonization, driven by the European Commission's Innovation Fund. These projects will directly electrify heat supply through electric boilers, requiring approximately 240 GWh of renewable electricity annually, aiming to replace fossil fuels in energy-intensive industrial sectors.

These projects will be deployed in the food and beverage, chemical, manufacturing, tire, mining, and other industrial sectors. Iberdrola stated that the projects will significantly reduce carbon dioxide emissions associated with high-energy-demand industrial processes, enhancing the competitiveness of participating companies.

Managed by the European Climate, Infrastructure and Environment Executive Agency, the European auction selected 65 projects across 10 European countries, with aid amounting to nearly 400 million euros. Spain led the bidding with 24 of the 65 awards. The total aid for Iberdrola's selected initiatives is close to 50 million euros, accounting for approximately 35% of Spain's total allocation, helping to accelerate the electrification of industrial heat in the country.

In addition to reducing emissions, these initiatives will enable participating companies to transition to a more efficient, competitive, and resilient energy model, thanks to long-term contracts providing stability and visibility for decarbonized heat costs. Iberdrola stated that project execution includes long-term power purchase agreements, mobilizing over 150 MW of renewable energy.

Beyond these actions, Iberdrola has signed two other PPAs in Spain with companies in the metallurgy and data center sectors, representing an additional 90 MW of renewable energy.

Fernando Mateo, Head of Industrial Decarbonization at Iberdrola, said that this aid allows the company to accelerate practical, mature initiatives, improve customer competitiveness, reduce heating costs, decrease exposure to fossil fuel volatility, and advance decarbonization goals. He noted that direct electrification of industrial heat is one of the most effective levers for cutting emissions in the short term, and the European auction demonstrates that there are now viable projects ready for deployment.

This award comes at a critical moment for European electrification, with the European Commission already preparing plans for a second industrial heat auction in the coming months, aiming to continue accelerating the replacement of fossil heat with clean solutions and technologies.

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