Call for tenders: Projects to electrify industrial production processes in the Luxembourg manufacturing sector

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Summary:

A new call for tenders aimed at providing financial aid to cover a financing shortfall is available to businesses that implement electrification projects for industrial production processes in the Luxembourg manufacturing sector.

As part of its strategy on transitioning to a net-zero emissions economy, the Ministry of the Economy (Ministère de l’Économie) is issuing a call for tenders from businesses seeking support for electrification projects for industrial production processes in the manufacturing sector. The purpose of this measure is to encourage businesses to electrify their fossil fuel-powered equipment, by providing them with targeted financial support to do so.

The call for tenders is meant for businesses that are established in Luxembourg and operate in the manufacturing sector (section C of NACE Rev. 2). For projects to be eligible, they must reduce direct greenhouse gas emissions (CO₂ equivalent) by at least 40 % compared to previous circumstances by electrifying industrial processes.

The total budget earmarked for this initiative is EUR 132.25 million, in the form of subsidies. The support is intended to cover a project's financing shortfall, as calculated over a 10-year period.

Projects submitted as part of this call for tenders will be ranked and selected based on competitive criteria, and particularly the amount of aid requested per tonne of CO₂ equivalent saved over 10 years.

Tenderers must meet all of the eligibility requirements listed in the tender specifications, which can be found here (French, Pdf, 751 Kb).

Note: Being selected as part of this call for tenders does not guarantee that all of the subsequent administrative procedures that you will need to complete will be approved automatically.

Who is concerned

The tenderer may be any legal person that:

  • is established in the Grand Duchy of Luxembourg;
  • is engaged in an economic activity as their main occupation;
  • operates in the manufacturing sector (section C of NACE Rev. 2).

Businesses in difficulty are not eligible.

Interested businesses are invited to contact Luxinnovation (aides@luxinnovation.lu) to confirm their eligibility and get assistance with preparing their application.

Prerequisites

The project described in the tender must be in keeping with the purpose of the call for tenders, and satisfy the criteria and requirements described in the tender specifications (French, Pdf, 751 Kb).

The application must be submitted before the commencement of the work.

Deadlines

The call for tenders is open from 22 August 2025 to 31 October 2025 (12.00 CET). The selected projects must be completed within 36 months of the date on which the financial aid is granted, with commissioning certified by an accredited organisation.

How to proceed

Participating in the call for tenders

To participate in the call for tenders, you must:

  • download the tender specifications and the tender forms (see 'Online services and forms');
  • subscribe to the mailing list by sending an email to decarbonation@eco.etat.lu to receive updates;
  • satisfy all of the requirements set out in the tender specifications;
  • follow the tender procedure described in chapter 2.3.4 of the tender specifications.

The application must be submitted by 12.00 CET on 31 October 2025.

Supporting documents

Applicants' tenders must contain all of the documents listed in chapter 4 of the tender specifications.

Application processing time

If you have any questions about the call for tenders, please email them to decarbonation@eco.lu. Responses will then be sent to all of the parties that have subscribed to the mailing list, by no later than 2 weeks before the deadline – i.e. by 17 October 2025.

The selection will be officially confirmed by way of a ministerial decision, signed by the Minister of the Economy, by no later than 31 December 2025.

Amount and types of financial aid

Projects submitted as part of this call for tenders will be ranked and selected based on competitive criteria, and particularly the amount of aid requested per tonne of CO₂ equivalent saved over a period of 10 years from the date on which the facility or equipment was commissioned.

For the selected projects, the aid is disbursed in 2 phases, comprising:

  • an initial tranche, corresponding to 45% of the investment costs, and disbursed at the time of commissioning;
  • the balance, which is divided into 10 annual tranches, and whose disbursement is contingent on the achievement of the decarbonisation targets.

Obligations

Any breach of the obligations described in the tender specifications may result in penalties, which include the withdrawal of the aid granted, the reimbursement of the sums received, and being barred from future calls for tenders.

Online services and forms

Who to contact

Luxinnovation Aid

Address:
5, avenue des Hauts-Fourneaux L-4362 Esch-sur-Alzette

Ministry of the Economy General Directorate - State Aid and Company Financing

Address:
19-21, boulevard Royal L-2449 Luxembourg
L-2914 Luxembourg

Related procedures and links

Links

Legal references

Loi du 3 juillet 2025

instituant un régime d’aides en faveur de la transition vers une économie à zéro émission nette

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