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The Industrial Energy Transformation Fund (IETF) supports the development and deployment of technologies that enable businesses with high energy use to transition to a low carbon future. The IETF is a crucial part of the government’s strategy for tackling climate change and reaching Net Zero by 2050. By supporting businesses to cut their bills and emissions through increased energy efficiency and decarbonisation, it will complement other government programmes that offer innovation and early demonstration support and will help to transform an important part of the UK economy.

Programme:

Award:

Opens: January 2022

Closes: April 2022

Objectives of the Fund:

The Industrial Energy Transformation Fund is expected to help UK industry improve energy efficiency. The £315 million Fund will support businesses with high energy use to:

  • Cut energy bills by investing in more efficient technologies
  • Reduce emissions by bringing down the costs and risks associated with investing in deep decarbonisation technologies
  • The focus is particularly on the benefits and barriers to industrial decarbonisation as government has a good understanding of these issues for energy efficiency
  • The IETF is seen as a vital part of transforming industrial energy use, reducing business energy costs, and seizing the opportunities of clean growth, which is at the heart of the modern Industrial Strategy.

Eligible Expenditure:

All projects must relate to improvements to an existing industrial process at a manufacturing site or data centre. Following stakeholder feedback, the minimum thresholds for grant applications have been lowered.

Details of the grants are:

  • Energy efficiency deployment – grant size must be £100,000 – £14m
  • Deep decarbonisation deployment – grant size must be £100,000 – £30m
  • Studies (both energy efficiency and deep decarbonisation):
    • Feasibility – total eligible costs must be at least, £30,000. Maximum grant can be up to £7m
    • Engineering – total eligible costs must be at least £50,000. Maximum grant size can be up to £14m
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