Businesses in some of the UK’s most polluting and energy-intensive industries will be able to bid for a share of £220 million in government investment to help cut their carbon emissions and the costs of their energy bills as the government announces Phase 2 of the Industrial Energy Transformation Fund (IETF).
£220 million will support green projects that help businesses across England, Wales and Northern Ireland clean up their industrial processes, improve their energy efficiency and reduce their carbon emissions – benefiting industries including pharmaceuticals, steel, paper, and food and drink.
Through grants of up to £30 million, companies may invest into a wide range of actions including installing more efficient boilers, electric motors and heat pumps to replace their natural gas-fired boilers and steam turbines, as well as developing technologies for industrial carbon capture, fuel switching and recycling waste heat into renewable electricity.
Business & Energy Secretary Kwasi Kwarteng commented on the announcement: “Through this new fund, we’re stepping up efforts to clean-up industry as we transition to a low-carbon economy.
“Not only will this major investment support energy-intensive industries to cut pollution, it will help companies save money on energy bills and support jobs as we fight to ensure British industry remains globally competitive.”
A total of £289 million has been made available through both phases of the Industrial Energy Transformation Fund, with the time available for businesses to invest these funds extended to 2025.
The IETF Phase 2 Autumn window opens for applications on Monday 27 September and closes on Monday 6 December 2021
Companies are already benefiting from the first phase of this fund. For example, A project to deliver a new glass production furnace at Saint Gobain Glass UK’s plant in North Yorkshire will improve the plant’s efficiency whilst dramatically reducing energy consumption, emissions and on-going maintenance costs.
In Silvertown, London, Tate & Lyle Sugars are leading a study of deep decarbonisation of its sugar refinery to reduce its greenhouse gas emissions by 90% there.
The full list of previously announced winners from the first Phase 1 window is available on the UK Government website. The remaining applications from Phase 1 are currently being assessed and details of successful applicants will be announced in due course.
More information about applying for funding for Phase 2 of the Industrial Energy Transformation Fund is available on the UK Government website.