Iberdrola Advances Industrial Decarbonisation With EU-Backed Renewable Heat Projects Across Energy-Intensive Sectors

Iberdrola promotes the electrification of industry with eight projects that will mobilise 150 MW of renewable energy

(IN BRIEF) Iberdrola has been awarded European support for eight industrial heat electrification projects under the first European Commission Innovation Fund auction focused on decarbonising industrial heat. The projects will use electric boilers powered by renewable electricity to replace fossil fuel-based heat in energy-intensive sectors such as food and beverages, chemicals, manufacturing, tyres, mining and other industrial activities. Together, the initiatives will require about 240 GWh of renewable electricity per year and will mobilise more than 150 MW of renewable energy through long-term power purchase agreements. Iberdrola’s selected projects will receive nearly €50 million in aid, representing around 35% of the total funding awarded in Spain, where 24 of the 65 selected European projects are located. The company will provide an integrated solution covering design, construction, operation and renewable energy supply, helping industrial customers reduce emissions, stabilise energy costs, improve resilience and accelerate compliance with European decarbonisation objectives.

(PRESS RELEASE) BILBAO, 2-Jun-2026 — /EuropaWire/ — Iberdrola has secured European support for eight industrial heat electrification projects that will help energy-intensive companies replace fossil fuel-based heat with renewable electricity. The projects were selected in the first European Commission Innovation Fund auction dedicated to the decarbonisation of industrial heat and are expected to mobilise more than 150 MW of renewable energy.

The selected initiatives will use electric boilers to directly electrify industrial heat, enabling participating companies to reduce emissions from high-energy production processes while improving the stability and competitiveness of their energy models. Together, the projects will require around 240 GWh of renewable electricity per year, supporting a significant reduction in carbon dioxide emissions across several industrial sectors.

The projects will be implemented in areas including food and beverages, chemicals, manufacturing, tyres, mining and other industrial activities. By replacing fossil fuels with renewable power, the initiatives reinforce electrification as a practical and scalable route for industrial decarbonisation, particularly in sectors where heat demand remains a major source of emissions.

With these awards, Iberdrola strengthens its position as a partner for industrial companies seeking to accelerate their transition to cleaner energy. The company’s approach is designed to reduce customers’ exposure to fossil fuel price volatility while helping them meet sustainability requirements set by European regulation and by the wider market.

The European auction was managed by the European Climate, Infrastructure and Environment Executive Agency, CINEA, and selected 65 projects across ten European countries, backed by almost €400 million in aid. Spain led the results with 24 projects selected out of the 65 awarded.

Iberdrola’s eight selected initiatives will receive nearly €50 million in support, representing around 35% of the total funding granted in Spain. The funding provides an important boost to the deployment of industrial heat electrification in the country and supports the development of mature decarbonisation projects that can be implemented in the near term.

Beyond emissions reduction, the projects are expected to help participating companies move toward more efficient and resilient energy structures. Long-term contracts will provide greater predictability on the cost of decarbonised heat, offering companies visibility and stability at a time when fossil fuel markets remain exposed to volatility.

The execution of the projects will include long-term power purchase agreements that will mobilise more than 150 MW of renewable energy. These agreements add to two other PPAs signed by Iberdrola in Spain with companies in the metallurgical and data centre sectors, which together represent an additional 90 MW of renewable energy.

Iberdrola will provide a comprehensive solution covering the design, construction and operation of the facilities, along with the renewable electricity needed to generate electrified heat. This model is intended to make decarbonisation easier for industrial customers by limiting disruption to factory operations and reducing the complexity of switching from fossil fuels to clean heat.

Fernando Mateo, head of industrial decarbonisation at Iberdrola, said the European support will help accelerate real and mature projects that can improve customer competitiveness, reduce heat costs, lower exposure to fossil fuel volatility and advance decarbonisation goals. He added that direct electrification of industrial heat is one of the most effective short-term tools for reducing emissions, and that the European auction demonstrates the existence of a strong portfolio of viable projects ready for deployment.

The award comes as Europe increases its focus on industrial electrification. The European Commission is already preparing a second industrial heat auction in the coming months, aiming to further speed up the replacement of fossil-based heat with cleaner technologies and solutions.

Iberdrola continues to work with energy-intensive customers to accelerate clean technology deployment, reinforce industrial competitiveness and support the transition toward a more sustainable, efficient and resilient economic model.

Media Contact:

CORPORATE COMMUNICATION
Tel: +34 91 577 65 00
comunicacioncorporativa@iberdrola.es

SOURCE: Iberdrola