- £ 220million government investment to help some of the most polluting industries find new ways to cut their carbon emissions
- the funding will support projects such as carbon capture and the deployment of heat recovery technology to help businesses reduce fossil fuel consumption and energy costs
- new investment as part of the government’s plan to support UK industry in the transition to a low carbon economy
Companies in some of the UK’s most polluting and energy-intensive industries will be able to bid for a share of £ 220million of government investment to help them cut their carbon emissions and lower the costs of their energy bills , the government announced today (Wednesday September 22). The move comes as the UK strives to create a clean, safe and clean energy sector to reduce its reliance on fossil fuels and its exposure to volatile global wholesale energy prices.
£ 220million will support green projects that help businesses in England, Wales and Northern Ireland clean up their industrial processes, improve energy efficiency and reduce carbon emissions, benefiting industries such as pharmaceuticals, steel, paper, food and beverage. This is in addition to the roughly £ 70million already available to businesses under the first phase of this Industrial Energy Transformation Fund.
With grants of up to £ 30million, companies can invest in a wide range of actions, including installing more efficient boilers, electric motors and heat pumps to replace their natural gas boilers and heat pumps. steam turbines, as well as the development of industrial carbon capture technologies. , change of fuel and recycling of waste heat into renewable electricity
Industry is expected to produce 16% of UK emissions today and will need to cut emissions by two-thirds by 2035 in order to put the UK on track to end its contributions to climate change by 2050. The fund plays a crucial role in helping large emitting industries clean up as part of the UK’s Green Industrial Revolution, by decarbonizing their industrial processes and reducing their dependence on fossil fuels such as gas. This means companies will not only reduce their environmental impact, but also save on their energy bills and support thousands of UK jobs.
This precedes a major speech by the Prime Minister to the United Nations General Assembly ahead of the conference in the United Kingdom COP26 climate summit, where he will expose that climate change and economic growth are not mutually exclusive tradeoffs, and urge world leaders to advance sustainable economic transformation.
Prime Minister Boris Johnson said:
Through innovation and investment across the economy, we can fuel the UK’s Green Industrial Revolution. But we know that for the most polluting and energy-intensive businesses, it will mean a big change in the way they operate.
That’s why we’re devoting another £ 220million to help them cut their carbon emissions, lower their energy bills and support good jobs – creating a sustainable future as we rebuild greener in all the countries.
Business and Energy Secretary Kwasi Kwarteng said:
With this new fund, we are stepping up our efforts to clean up the industry as we move to a low carbon economy.
Not only will this major investment help energy-intensive industries reduce pollution, it will help businesses save money on energy bills and support jobs as we fight to ensure that the UK industry remains globally competitive.
A total of £ 289million has been made available under the two phases of the Industrial Energy Transformation Fund, with the time frame available for companies to invest these funds being extended until 2025.
Companies are already benefiting from the first phase of this fund. A project to deliver a new glass production furnace to the Saint Gobain Glass UK plant in North Yorkshire, for example, will improve plant efficiency while significantly reducing energy consumption, emissions and ongoing maintenance costs. In Silvertown, London, Tate & Lyle Sugars is carrying out a deep decarbonisation study of its sugar refinery to reduce its greenhouse gas emissions by 90%.
Helping industry to rebuild greener through the Industrial Energy Transformation Fund will help advance the UK’s Green Industrial Revolution and level the country’s industrial centers, while maintaining the status of a world leader of the United Kingdom in the fight against climate change.
Notes to Editors
- The IETF The Phase 2 fall window opens for applications on Monday, September 27, and ends on Monday, December 6, 2021
- learn more about the funding request for phase 2 of the Industrial Energy Transformation Fund (IETF)
- the first competition window officially opens on September 27, worth up to £ 60million of the total £ 220million for phase 2 of this fund, with a commitment with companies to follow over the next few weeks to get them ready for the window. Other windows of competition will follow next year
- Phase 1 of the IETF had 2 competition windows – the first in summer 2020 which ran from July 20 to October 28, 2020, and the second in spring 2021 which ran from March 8 to July 14, 2021
- see the list of previously announced winners of the first phase 1 window. The remaining phase 1 applications are currently being evaluated and the details of the successful applicants will be announced in due course.
- the Scottish government administers £ 34 million (£ 26 million from IETF) to invest in Scotland and launched the ScottishIETF in December 2020.