Deadline: 15-Sep-2026
The European Commission has launched a Horizon Europe funding opportunity with a total budget of €18 million to support full-scale demonstration projects that recover and upgrade industrial waste heat. The initiative aims to reduce fossil fuel dependence, improve energy efficiency, and strengthen industrial competitiveness by deploying innovative heat recovery and heat upgrade technologies across energy-intensive sectors.
Program Overview
This funding programme supports the development and demonstration of advanced systems that recover waste or excess heat from industrial processes and convert it into usable heat for production activities.
The initiative focuses on transforming industrial heat systems through innovative technologies that improve energy efficiency and reduce emissions. The programme also encourages integration with renewable heat sources and energy storage systems to create more flexible and sustainable industrial energy solutions.
Through large-scale demonstration projects, the programme seeks to accelerate industrial decarbonisation while maintaining competitiveness and operational performance.
Focus Areas and Program Objectives
The programme supports several strategic priorities related to industrial energy efficiency and heat recovery.
Key objectives include:
• Reducing dependence on fossil fuels in industrial processes
• Supporting industrial decarbonisation pathways
• Increasing recovery and upgrading of industrial waste heat
• Improving renewable heat utilization
• Enhancing industrial competitiveness
• Strengthening energy efficiency across industrial sectors
• Supporting flexible energy consumption systems
• Improving system reliability and safety
• Enhancing cybersecurity capabilities
• Reducing environmental impacts
• Supporting cost-effective industrial energy solutions
• Strengthening replicability and large-scale deployment potential
Expected Outcomes
Projects funded under this initiative are expected to demonstrate measurable improvements.
Expected outcomes include:
• Viable business models for industrial heat recovery systems
• Reduced fossil fuel consumption
• Increased use of recovered heat resources
• Improved energy efficiency performance
• Enhanced operational flexibility
• Lower industrial emissions
• Increased competitiveness of industrial facilities
• Greater deployment potential across EU industries
• Improved system reliability and safety performance
Priority Research and Demonstration Areas
The programme supports multiple technology and innovation areas.
Waste Heat Recovery and Upgrade Systems
Activities may include:
• Recovery of excess industrial heat
• Heat upgrade technologies
• Industrial heat reuse systems
• Heat transfer optimization solutions
Heat Pump Technologies
Activities may include:
• Industrial heat pump deployment
• High-temperature heat pump applications
• Heat conversion technologies
Energy Storage Integration
Activities may include:
• Thermal energy storage systems
• Electrical energy storage integration
• Heat-demand balancing systems
Industrial Energy Flexibility
Activities may include:
• Flexible heat supply systems
• Grid interaction improvements
• Energy demand optimisation
Standardisation and Replication
Activities may include:
• Development of standard components
• Replicable industrial system designs
• Open technical guidelines
• Economic assessment tools
• Business case development models
Knowledge Sharing and Collaboration
Activities may include:
• Dissemination activities
• Industrial cluster engagement
• Collaboration with ongoing energy initiatives
• Research community knowledge transfer
Key Concepts Explained
Waste heat recovery refers to capturing heat generated as a by-product of industrial activities and reusing it rather than allowing it to be lost.
Heat upgrading involves increasing the temperature or usefulness of recovered heat so it can be reused effectively within industrial processes.
Industrial heat pumps are systems that transfer and increase heat energy for industrial use while improving energy efficiency.
Thermal energy storage refers to storing heat energy for later use to improve energy management and flexibility.
Replicability refers to the ability to adapt and deploy successful technologies across multiple facilities and sectors.
Industrial decarbonisation involves reducing carbon emissions generated by industrial activities and energy use.
Funding Information
Funding is provided under the Horizon Europe framework.
Funding details include:
• Total programme budget: €18,000,000
• Indicative maximum funding per project: Approximately €9,000,000
• Funding type: Full-scale demonstration projects
Funding supports large-scale industrial demonstrations and innovation activities.
Who is Eligible?
Participation is open to a broad range of eligible entities.
Eligible participants include:
• Legal entities established under national law
• Organizations established under European Union law
• International organizations
• Eligible entities from non-associated third countries
• Research institutions
• Industrial organizations
• Universities
• Public and private sector organizations
Applicants must comply with Horizon Europe participation requirements.
Participation requirements include:
• Registration in the Participant Register
• Obtaining a Participant Identification Code (PIC)
• Completion of validation requirements before grant agreement signing
A validated PIC is not required during the application submission stage.
Why This Opportunity Matters
Industrial heat demand represents a major source of energy consumption and greenhouse gas emissions. Recovering and reusing industrial heat can significantly improve efficiency while lowering operational costs and reducing environmental impacts.
Potential benefits include:
• Reduced fossil fuel dependence
• Improved industrial energy efficiency
• Lower greenhouse gas emissions
• Stronger energy security
• Improved industrial competitiveness
• Increased renewable energy integration
• Greater flexibility in industrial operations
What Applicants Need to Do
Organizations interested in participating should prepare strong demonstration proposals.
Recommended actions include:
• Develop full-scale industrial demonstration plans
• Identify target industrial sectors and facilities
• Demonstrate replicability potential
• Include storage and flexibility considerations
• Develop business models and economic analyses
• Establish collaboration partnerships
• Complete Participant Register requirements and obtain a PIC
Common Mistakes to Avoid
Applicants should avoid common proposal weaknesses.
Common mistakes include:
• Limited demonstration of scalability potential
• Weak replication strategies
• Lack of economic viability analysis
• Inadequate industrial sector assessment
• Missing dissemination plans
• Insufficient collaboration structures
• Failure to address energy flexibility requirements
Frequently Asked Questions (FAQ)
What is the purpose of this funding call?
The programme supports full-scale demonstrations of technologies that recover and upgrade industrial waste heat for productive use.
How much funding is available?
The total programme budget is €18 million, with approximately €9 million available per project.
What types of technologies are supported?
Supported technologies include heat recovery systems, industrial heat pumps, energy storage solutions, and related industrial energy innovations.
Must projects be demonstrated in real industrial environments?
Yes. Projects are required to demonstrate solutions at full scale within operational industrial sites.
Can renewable heat sources be integrated?
Yes. Projects may combine waste heat recovery with locally available renewable heat sources.
Can international organizations participate?
Yes. International organizations and eligible entities from non-associated third countries may participate under Horizon Europe rules.
Is a validated Participant Identification Code required at submission?
No. Applicants only need to obtain a PIC during the process, while validation is required before grant agreement signing.
Conclusion
The European Commission’s full-scale heat upgrade demonstration programme supports innovative industrial solutions that transform waste heat into valuable energy resources. Through large-scale demonstrations and scalable technologies, the initiative aims to accelerate industrial decarbonisation, strengthen competitiveness, and improve long-term sustainability across Europe’s industrial sectors.
For more information, visit European Commission.
