Businesses operating in some of the most polluting and energy-intensive industries can now bid for a share of government investment to help cut their carbon emissions and the costs of their energy bills.
Grants are available to 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.
Phase 2 of the Industrial Energy Transformation Fund (IETF) is now open for the first of four planned funding ‘windows’. The current window is worth up to £60 million. Grant thresholds are as follows:
- Energy efficiency deployment – projects can receive between £100,000 and £14 million in grant funding.
- Deep decarbonisation deployment – projects can receive between £100,000 and £30 million in grant funding.
- Studies: Feasibility – projects can receive between £30,000 and £7 million in grant funding. Engineering – projects can receive between £50,000 and £14 million in grant funding.
Eligible companies may invest in a 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.
Businesses with high energy use, such as energy intensive industries, will qualify for support. To lead an application, the organisation must be a registered company in England, Wales or Northern Ireland.
How To Apply
IETF Phase 2
Phase 2 expands the scope to additionally support the deployment of decarbonisation technologies, and provides around £220 million in funding between Autumn 2021 and 2025.
Phase 2 is expected to be to be split into four windows, worth around £220 million. The budget for the Phase 2 Autumn 2021 competition is up to £60 million.
The Phase 2: Autumn 2021 competition runs from 27 September 2021 to 6 December 2021. This phase is worth up to £60 million of the £220 million total for Phase 2 of this Fund, with engagement with businesses to follow over the coming weeks to prepare them for the window. Further competition windows will follow next year. Indicative dates:
- Phase 2: Spring 2022. Expected to open in January 2022 and close in April 2022.
- Phase 2: Summer 2022. Expected to open in May 2022 and close in September 2022.
- Phase 2: Autumn 2022. Expected to open in October 2022 and close in January 2023.
To maximise value for money, it is proposed there will be a competitive bidding process.
More details are available at the programme website
Addresses and contacts
For further information on how to obtain this grant locally, please contact the following:
- Enquiries
Industrial Energy Transformation Fund Team
Department for Business, Energy & Industrial Strategy (BEIS)
2nd Floor, Victoria 2
1 Victoria Street
London
SW1H 0ET
Email: [email protected]