Call for electrification of industrial process projects now open

The Ministry of the Economy has launched a call for projects aimed at supporting the electrification of industrial production processes in the Luxembourg manufacturing sector. This initiative reflects the government’s ambition to decarbonise industry and promote the substitution of fossil fuels with electricity in industrial operations. The goal is to reduce direct greenhouse gas emissions from eligible installations by at least 40%.

This call is part of the law of 3 July 2025 establishing a support scheme for the transition to a net-zero economy.

Lex Delles, Minister for the Economy, SMEs, Energy and Tourism, stated: “This call for projects reflects our commitment to supporting a competitive, sustainable and resilient industry. By promoting electrification, we are helping businesses transition to climate-friendly production models.”

Applications open until 31 October 2025

Companies may submit their projects between 22 August and 31 October 2025 at 12:00 CET. Projects will be ranked based on the amount of aid requested per tonne of CO₂ equivalent avoided, with tie-breaker criteria applied if necessary. Aid decisions will be announced no later than 31 December 2025.

Eligible projects must:

• concern an industrial installation within the manufacturing sector (NACE codes C10–C33)
• aim to reduce direct emissions by at least 40% through electrification
• not result in a production capacity increase of more than 2%
• be completed within 36 months of aid approval

Projects from companies in financial difficulty or those solely intended to meet existing regulatory standards are not eligible.

Aid will be disbursed in two phases:

• 45% of investment costs upon putting the equipment into use
• The remaining balance in ten annual instalments, subject to meeting decarbonisation targets

Beneficiaries must submit annual reports and comply with the technical and environmental requirements outlined in the tender specifications.

Companies may subscribe to a mailing list to receive updates on the call for projects. Questions should be sent to decarbonation@eco.etat.lu no later than three weeks before the submission deadline.