IETF deployment of energy efficiency technologies, Spring 2021 Organisations can apply for a share of up to £40 million for grants to improve the energy efficiency of industrial processes, reducing energy bills and cutting carbon emissions. Eligibility This competition is open to single applicants and collaborations. To lead a project or work alone you must: be a business of any size registered in England, Wales or Northern Ireland operate a site in England, Wales or Northern Ireland which fits into the following categories of activity: manufacturing, (SIC codes 10000 through to 33200) or data centre (SIC code 63110) Businesses are allocated a Standard Industrial Classification (SIC) code at the time of registering with Companies House. Open now Opened: 8 March 2021 Closes: 14 July 2021
Programme: Innovate Uk
Award: Share of up to £14 million
This competition aims to support the commercial roll out and permanent installation of technologies at industrial sites. This is the second round of the IETF Phase 1 competition.
The Industrial Energy Technology Fund (IETF) will support the onsite deployment of technologies that improve the energy efficiency of an industrial process or processes.
IETF will award up to £40 million across 2 strands. These are:
In this strand you must be an industrial business of any size to apply. You can apply on your own or in collaboration with other organisations. Your project must take place at a manufacturing site or data centre in England, Wales or Northern Ireland and be led by the operator of that site.
The other competition strand, IETF energy efficiency and decarbonisation studies, Spring 2021, will fund projects that support energy efficiency and decarbonisation studies.
The IETF is a Department for Business, Energy and Industrial Strategy (BEIS) fund. Innovate UK is delivering part of this competition on behalf of BEIS, which is a joint sponsor. Following the assessment of applications, the awarding, contracting, and monitoring of projects will be delivered by BEIS
In applying to this competition you are entering into a competitive process. The competition closes at 11am UK time on the deadline stated.
The minimum grant support available per project is £100,000. The maximum grant funding that an individual project can claim is £14 million. Please refer to the funding section for rules on how much grant funding your organisation can claim.
Your project must:
At the end of your project you must have installed and begun to operate (or be ready to operate) the energy efficiency technology.
Your project work must be carried out at a single manufacturing site or data centre in England, Wales or Northern Ireland.
You can include multiple projects within your application but you must make sure:
If you are submitting multiple projects, we will assess your application as a single submission.
If you want to apply for projects across different sites, you will need to submit one application for each site.
Eligible project costs
The IETF will only award grant funding to cover the eligible costs of deploying technologies where it can be demonstrated that these costs are additional and necessary to achieving the energy efficiency saving.
You must include a counterfactual case as part of your application. This means you have to refer to a similar, less energy efficient investment that would have been credibly carried out without the grant.
The difference between the costs of both cases of investment identifies the energy efficiency-related cost and constitutes the eligible costs.
If the technology’s only purpose is to achieve energy savings (for example in the case of a heat exchanger project) then it is possible to consider the total investment costs as eligible costs.
Commitment to knowledge sharing
You must consent to produce a case study for knowledge sharing during your project. It will be made publicly available so should not include any commercially sensitive information.
This competition is aimed at businesses that use energy or produce direct emissions as a result of their industrial processes.
IETF is not seeking to fund general research, development, and testing of a technology solution. Technology developers are not eligible to apply as lead applicants. Industrial processes refer to a set of economic activities as defined by the Standard Industrial Classification (SIC). Businesses are allocated a SIC code at the time of registering at Companies House. You will need to check your business SIC code to make sure you are eligible.
For this competition your business must fall into the following categories of activity:
If you are a parent company with a SIC code which does not reflect the activity carried out at the site of the proposed project, please email email@example.com with your organisation’s details, project locations and a brief outline of your project. An example of this would be where a data centre is owned by a telecoms company.
We will work with you to establish whether the activity at the site is eligible for this competition.
To lead a project your organisation must also:
A site is defined as the postcode, or multiple directly adjoining postcodes at which the project takes place.
The lead applicant must be the owner of the industrial process or data centre operator. A third party (for example, a consultancy or an energy service company) can prepare an application on behalf of the lead applicant. However, BEIS will not have a legal relationship with, or pay money to a third party.
Lead organisations can collaborate with other organisations provided the project partners meet the criteria below.
To collaborate with the lead your organisation must:
The lead must claim funding by entering their costs into the Innovation Funding Service during the application. If the lead is collaborating with other organisations then the lead and at least one other partner must claim grant funding and enter their costs into the Innovation Funding Service.
Each partner organisation must be invited into the Innovation Funding Service by the lead to collaborate on a project. Partners must enter their own project costs into the Innovation Funding Service.
Your project can include partners that do not receive any of this competition’s funding, for example businesses registered in Scotland or outside the UK
Subcontractors are allowed in this competition.
Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.
You can use subcontractors from overseas but must make the case in question 5 for why you could not use suppliers from the UK.
You must also provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you.
We expect all subcontractor costs to be justified and appropriate to the total eligible project costs. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.
Applications which are successful at the assessment stage will undergo due diligence. Applicants must be willing to dedicate sufficient resource to assist us in completing this process.
You can use a previously submitted application from the first round of the IETF phase 1 to apply for this competition. This took place in the Summer 2020. Some application questions have changed, you must make sure that you are eligible, your proposal is in scope and the questions are answered in full.
This competition provides funding in line with the UK's obligations and commitments to Subsidy Control. Further information about the UK Subsidy Control requirements can be found within the EU-UK Trade and Cooperation agreement and the subsequent guidance from the department of Business, Energy and Industrial Strategy (BEIS).
IETF is unable to award grant funding to organisations that are considered to be in financial difficulty. Please see the Supplementary Grant Award Guidance for more information. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.
European Commission State aid
You must apply under European Commission State aid rules if you are an applicant who is conducting activities that will affect trade of goods and electricity between Northern Ireland and the EU as envisaged by Article 10 of the Protocol on Ireland/Northern Ireland in the EU Withdrawal Agreement.
In certain limited circumstances, the European Commission State aid rules may also apply if you are an organisation located in England, Wales, or Scotland and conduct activities that affect the trade of goods and electricity between Northern Ireland and the EU. For further information, please see section 7 of the BEIS technical guidance.
For applicants subject to the European Commission State aid rules, applicants will be required to prove that they were not an “Undertaking in Difficulty” on the date of 31 December 2019 but became a UID between 1 January 2020 and 30 June 2021. We will ask for evidence of this.
If you are unsure about your obligations under the UK Subsidy Control regime or the State aid rules, please take independent legal advice.
You must make sure at all times that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.
This aims to regulate any advantage granted by a public sector body which threatens to or actually distorts competition in the United Kingdom or any other country or countries.
Total funding available
We have allocated up to £40 million to fund projects across 2 competition strands:
The majority of the funding will be allocated in this deployment strand.
Grant funding thresholds
The minimum threshold for grant awards is £100,000 towards the total eligible costs of the project. The maximum grant funding that an individual project can claim is £14 million.
Your application can be made up of multiple projects and there is no minimum cost per project. You must make sure that:
You should consider whether your application falls within these thresholds by estimating how much of the total project cost you can claim based on the rules outlined in the funding section of this competition. If you are unsure, please email firstname.lastname@example.org for further information about your eligibility.
We will assess your application in terms of its value for money. You must only apply for the minimum amount of grant to enable the project to go ahead.
IETF will award grant funding to cover eligible costs of deploying technologies if you can show that these costs are additional and necessary to achieving the energy efficiency saving. The extra investment costs necessary to achieve the higher level of energy efficiency will be determined as follows:
You must include a justification for the costs claimed in your application
Each project partner can claim for their share of the eligible project costs. The maximum grant value that each partner can claim is determined by the rules below. If your organisation’s work on the project is mostly commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically.
You can apply for funding for multiple projects if you are able to show that each project is a separate investment. The maximum amount of funding a single project can receive is £14 million in total. Aggregated applications may exceed this.
If you are unsure about the funding rules of this competition, please contact Innovate UK or take legal advice.
You can only claim funding in this competition for projects that take the energy efficiency of your site beyond the relevant legal minimum standards.
The following are costs which are ineligible:
You cannot apply for or obtain, duplicate funding for the same funded activities covered by the grant. Duplicate funding means funding provided by another source for the same activity.
Where you declare any match or pooled funding, IETF will not consider this duplicate funding.
You cannot claim for the costs of operating your installed energy efficiency technology, or for any preparatory work conducted before the grant is awarded.
The government can in certain circumstances, offer additional financial support to organisations acting economically if they are conducting projects located in specific geographical areas.
If your project is located in assisted area A you could receive funding for your eligible project costs of:
If your project is located in assisted area C you could receive funding for your eligible project costs of:
If your project is located in another area you could receive funding for your eligible project costs of:
For further information on assisted areas please see the Supplementary Grant Award Guidance.
Any research organisations in your project team undertaking non-economic activity as part of the project can share up to 30% of the total eligible costs. If your project team contains more than one research organisation undertaking non-economic activity, this maximum is shared between them.
For organisations based in the England and Wales you must refer to the company accounts guidance for definitions of different organisation sizes.
For projects subject to the European Commission State aid rules, please read the EU definitions of different organisation sizes.