Two district heating projects have been selected for funding under the 2025 Innovation Fund Net-Zero Technologies call, following three successful DHC projects last year. They feature among 77 projects selected for €3.4 billion in support, announced by the European Commission on 19 October.

Financed through EU Emissions Trading System revenues, the call supports the demonstration and deployment of innovative decarbonisation technologies, including clean heating and cooling, renewable energy and energy storage. Funding can cover up to 60% of relevant costs, with projects assessed on innovation, emissions savings, maturity, replicability and cost efficiency.

The two selected DHC projects showcase different approaches to decarbonising urban heat:

ComPon Prague, Czechia: Developed by ComPon Praha, the project will install a floating heating and cooling plant connected to Prague’s DHC network. Built in a shipyard, the platform is designed to be replicated in other European DHC systems, providing a new energy source or replacing fossil-based supply.
NetZeroHeat, France: Calogena’s project aims to deploy Europe’s first heat-only small modular nuclear reactor, supplying an expected 131 GWh of low-carbon heat annually to the Pierrelatte district heating network. The project expects to avoid more than 221,000 tonnes of CO₂-equivalent over its first decade of operation.

Turning heat innovation into commercial deployment requires investment. The Innovation Fund helps close financing and commercial gaps for first-of-a-kind projects, bringing innovative DHC solutions closer to commercial deployment.

Floating platforms and small reactors: Innovation Fund backs district heating projects