This Week in Energy — Brussels (#19, 2026)
Commission awards €400m for industrial heat decarbonisation; €1.3bn German aid to renewable hydrogen; Fertiliser Action Plan to address energy-driven supply risk.
May 17, 2026 to May 23, 2026
Commission awards €400m for industrial heat decarbonisation; €1.3bn German aid to renewable hydrogen; Fertiliser Action Plan to address energy-driven supply risk.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ✒️ EP Committee Work
European Commission
Commission awards €400 million to projects decarbonising industrial heat
The European Commission selected 65 industrial projects under the first Innovation Fund Heat Auction, awarding approximately €400 million to initiatives in ten European Economic Area countries. The projects will employ technologies such as resistance heating, heat pumps, solar thermal, and hybrid systems to replace natural gas in heat production across several industrial sectors, aiming to avoid over 6.6 million tonnes of CO2 emissions over ten years. The projects are expected to deliver around 16.3 TWh of decarbonised heat and displace over 1.5 billion cubic metres of natural gas in five years. The funding is sourced from the EU Emissions Trading System. The grants will be finalised and monitored by the European Climate, Infrastructure and Environment Executive Agency, with financial close required within two years and commissioning within four years. A second Heat Auction, with a €1 billion budget, is planned for later in 2026.
Commission approves €1.3 billion German State aid for renewable hydrogen
The Commission authorised a €1.3 billion State aid scheme by Germany to spur the production of renewable hydrogen via the European Hydrogen Bank's "Auctions-as-a-Service" tool. The programme aims to support up to 1,000 MW of electrolyser capacity and deliver as much as 10 million tonnes of renewable hydrogen, with projects connecting to the Danish Hydrogen Backbone 1 pipeline and the German Hydrogen Core Network. Support will be awarded through competitive bidding, managed by the European Climate, Infrastructure, and Environment Executive Agency (CINEA). Grants will be paid per kilogram of renewable hydrogen produced for up to ten years, and projects must comply with EU criteria for renewable fuels of non-biological origin (RFNBOs). The scheme follows State aid rules under Article 107(3)(c) TFEU and CEEAG 2022 guidelines.
Commission presents Fertiliser Action Plan for supply security and resilience
The European Commission unveiled the Fertiliser Action Plan to mitigate impacts from volatile energy prices, supporting farmers with targeted exceptional aid and reinforcing domestic production. The Plan contains immediate measures channelling EU budget funds and legislative proposals to enable liquidity schemes, advanced CAP payments, and incentives for efficient fertiliser use. It also addresses long-term resilience by promoting bio-based and circular fertilisers, simplifying regulatory barriers, and improving supply chain transparency. Steps include market monitoring, evaluation of strategic stocks, and continued international cooperation. The Plan is designed to strengthen food security and reduce the EU's reliance on imported fertilisers and raw materials, aligning with previous initiatives such as the 2022 Fertilisers Communication.
EP Committee Work
ITRE draft opinion on CO₂ emission standards for light duty vehicles
The Committee on Industry, Research and Energy (ITRE), with rapporteur Matej Tonin, released a draft opinion on the proposal to amend Regulation (EU) 2019/631 regarding CO₂ emission performance standards for new light duty vehicles. The draft also addresses vehicle labelling changes and calls for the repeal of Directive 1999/94/EC. The opinion will inform ongoing legislative work on vehicle decarbonisation and consumer information.
DEVE Committee press delegation to Mozambique on renewable energy investment
A five-member delegation from the Development Committee (DEVE), chaired by Barry Andrews (Renew, IE), will travel to Mozambique from 26–28 May 2026. The visit focuses on Global Gateway projects, particularly the country's energy transition, digitalisation, and youth employment. MEPs will meet government officials and assess the impact of EU investments in renewable energy and climate resilience initiatives.
INTA Committee press delegation to South Africa: Clean Trade and Investment Partnership in focus
A European Parliament International Trade Committee (INTA) delegation, led by Chair Bernd Lange (S&D, DE), will visit South Africa to review the implementation of the Clean Trade and Investment Partnership signed earlier in 2026. The mission covers discussions with national counterparts on trade, decarbonisation, and EU-SADC Economic Partnership Agreement execution, and includes meetings with key stakeholders to assess cooperation and the opening of a new vaccine facility.
