On 19 October the European Commission selected 77 net-zero technology projects for €3.4 billion in grants under the Innovation Fund call launched in December 2025. The projects are spread across 23 countries of the European Economic Area and are financed by reinvesting revenues from the EU Emissions Trading System. The Commission estimates they could avoid about 290 million tonnes of CO2 equivalent in their first ten years of operation.
Heavy demand for limited money
Competition was intense. The call drew 358 applications requesting €17.5 billion, against an available budget of €2.9 billion. Another 84 projects passed evaluation but received no budget; they are awarded the STEP seal instead. A further 160 proposals will not receive grants but remain eligible for project development assistance from the European Investment Bank. With this round, the Innovation Fund portfolio reaches about 320 projects and almost €17 billion in committed grants.
Where the money goes
Twelve large-scale projects request about €1.58 billion, 17 medium-scale projects about €458 million, 20 small-scale projects about €124 million and 16 pilots about €394 million. The clean-tech manufacturing topic covers 12 projects requesting almost €895 million, spanning solar panels, heat pumps, electrolysers, EV batteries and a rare-earth magnet facility. For the first time, the list also includes a small modular nuclear reactor project and a direct air carbon capture and storage project.
A 5 GW solar factory in France
pv magazine reports that French manufacturer Holosolis is among the selected manufacturing projects with Solar4EU, an integrated 5 GW solar cell and module factory in Hambach, France. Production is planned to start in 2027 and reach full capacity by 2030. The project has secured more than €220 million in initial financing, including €200 million through France's C3IV tax credit scheme, and Chinese manufacturer Trina Solar is its strategic technology partner. The size of the Innovation Fund grant has not been published. Other manufacturing picks include PowerCo's LFP battery cell gigafactory in Spain, Poland's ArisEU 9 GWh LFP cell plant and Belgium's ReGAIN pilot for reusable germanium substrates used in solar panels.
What comes next
Selected promoters are now preparing grant agreements with CINEA, the EU's climate, infrastructure and environment executive agency, a process expected to finish in the first quarter of 2027. The Commission plans to open the next Innovation Fund call in early December 2026, including a €1 billion clean-tech manufacturing topic. "These projects show that Europe's innovators are turning climate ambition into industrial leadership," said Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth.
What it means for European developers
For developers and EPCs, the round is a signal rather than an immediate change in supply. A single 5 GW factory starting production in 2027 will cover only part of Europe's annual module demand, so imported modules will dominate procurement for years. Even so, public money for integrated cell and module lines, combined with national tax credits, improves the odds that European-made modules become a realistic option for projects that need local content or a more resilient supply chain. The December manufacturing call, and the final grant agreements in early 2027, are the next dates to watch.
Sources: European Commission, pv magazine.
