IDAE allocates 50 million euros to replace fossil fuels with renewables: an opportunity for biomass in industry

50 millones idae para cogeneracion renovable biomasa

The measure, managed by the agency under the Ministry for Ecological Transition and the Demographic Challenge, is part of the Recovery, Transformation and Resilience Plan and is financed with NextGenerationEU funds.

The new RENOCOGEN call opens a very interesting window of opportunity for bioenergy, especially for those industries that need medium and high temperature process heat, an area where electrification still presents significant technical and economic limitations.

Biomass: a mature solution for decarbonizing industrial heat

The call for proposals includes aid for facilities of production of renewable thermal and/or electrical energy, which explicitly include technologies based on biomass and biogas, along with other renewable sources. In the case of biomass, investments can be directed both towards the direct replacement of boilers fueled by natural gas, diesel or fuel oil, and towards projects of renewable cogeneration, where biomass allows the thermal needs of the production process to be met in a stable and manageable way.

For numerous industrial sectors (food, paper, wood, ceramics, chemical or agro-industrial) biomass represents today a A renewable alternative that allows for reduced emissions without compromising the continuity of the process, by offering:

  • Continuous and predictable energy supply, independent of the weather.

  • Competitive and stable thermal costs, less exposed to the volatility of fossil fuel markets.

  • Direct reduction of fossil CO₂ emissions, aligned with climate objectives and corporate reporting systems.

  • Utilization of local resources, such as forestry, agricultural or industrial by-products, with a positive impact on employment and the rural economy.

Terms and conditions of the RENOCOGEN call for proposals

The grants are awarded on a competitive basis and can cover up to 65 % of the eligible cost of the project, with maximum aid from 15 million euros per installation and a minimum investment of €50,000. The program provides for increased funding for SMEs and for projects located in areas facing demographic challenges or undergoing a just transition, and allows applicants to request advances of up to 80% % of the aid granted.

The deadline for submitting applications is open until early March 2026, This provides a limited but sufficient margin for interested industries to analyze the feasibility of replacing their fossil fuel systems with renewable biomass-based solutions.

The call reinforces the role of renewable heat within the framework of industrial decarbonization policies and implicitly acknowledges that not all processes can be electrified in the short term.

Bioenergy offers technologies available, tested and scalable, capable of offering real reductions in emissions from the thermal consumption of industry.

This line of aid can also contribute to activate new investments in boilers, industrial heat networks and biomass cogeneration, Strengthening local supply chains and moving towards a more competitive industry, less dependent on fossil fuels and aligned with Spain's energy and climate goals.

More information about RENOCOGEN

https://www.idae.es/noticias/el-idae-lanza-50-millones-para-sustituir-los-combustibles-fosiles-por-renovables-en

Scroll to Top