EU Innovation Fund backs wind manufacturing – but can it also boost electrification

The latest call of the EU Innovation Fund has awarded four wind energy manufacturing projects. This is good news for Europe's energy competitiveness and security. But the Innovation Fund is not yet giving enough support to direct electrification of industrial processes - a key pillar of the Clean Industrial Deal. A new call might change this now.

The European Commission has announced the results of its latest Innovation Fund call. 61 net-zero technology projects will receive funding. Four of them are wind manufacturing projects. They are spread across Europe with one project located in France, Denmark, Sweden and Spain, respectively.

WindEurope member BW Ideol will produce concrete floating foundations in Fos-sur-Mer, France. Two start-ups - Modvion and Voodin - will produce wind turbines more sustainably, using wooden towers and wooden rotor blades.

This is good news. The Commission continues to back wind manufacturing and secure Europe's technological edge. The Innovation Fund must remain a tool to scale up wind manufacturing. Not only by upgrading existing facilities, but also by supporting new sites for clean technologies.

More support for electrification needed

Direct electrification of industrial processes is vital to decarbonise Europe's industry. It is a core element of the Clean Industrial Deal. Europe is not doing enough to electrify its economy. Electrification rates have been flatlining at below 25%.

But the Innovation Fund's general calls do not work well for electrification projects. These projects attract far less Innovation Fund support than technologies like carbon capture and storage (CCS) or hydrogen. In the last call, electrification projects got less than 3% of the available funding. This needs to change. Direct electrification is the cheapest and most efficient way to decarbonise Europe.

The Commission has now launched the Industrial Heat Auction, a new pilot mechanism with a €1bn budget for its pilot auction. It specifically targets the electrification of industrial process heat. The pilot Auction will be an important test case for the upcoming Industrial Decarbonisation Bank (IDB), expected in 2026, future funding model. The IDB is an EU financing instrument set to mobilise €100 billion for industrial decarbonisation through tools like carbon contracts and blended finance. If the pilot auction for industrial heat works, it can set the model for the Industrial Decarbonisation Bank next year. The Bank must focus on electrification.

Next calls open

The first Industrial Heat Auction and the 2025 general Innovation Fund calls - including clean tech manufacturing - are now open. Deadline for the auction is 19 February 2026. The deadline for applications for the general calls is 23 April 2026.

On 13 January 2026, WindEurope will host a members-only webinar on the general call.

Background:

The EU Innovation Fund supports innovative low-carbon technologies to help Europe reach climate neutrality by 2050. It has a €40bn budget for 2020-2030, funded with the revenues from the EU's Emission Trading System (ETS). Since 2020, 14 wind energy projects have received at least €475m from the Fund.