Industrial Energy Transformation Fund

• Published date: 11 February 2021
• Subject Matter: Energy and Natural Resources, Energy Law, Oil, Gas & Electricity
• Law Firm: Walker Morris
• Author: Mr Ben Sheppard

On 7 February 2021 the government announced '40 million in funding for businesses to help the hard to decarbonise industrial sectors reduce emissions and improve energy efficiency.

Key points

• '40 million government investment to help polluting industries including steel, pharmaceuticals and food and drink to find new ways to reduce their carbon emissions
• solutions including using heat recovery technology to generate electricity and replacing gas with hydrogen fuel will help businesses cut energy costs, protect jobs, and improve air quality across the UK
• funding supports the government's mission to build back greener and eliminate the UK's contribution to carbon emissions by 2050

The Government has announced that some of the UK's most polluting industries will benefit from '40 million funding to help them cut their carbon emissions, while reducing their energy bills.

Businesses in energy-intensive sectors, including pharmaceuticals, steel, paper and food and drink, will be able to apply for grants worth up to '14 million through the government's Industrial Energy Transformation Fund - totalling '289 million in funding up until 2024.

In this second competition window, the minimum grant has been lowered to '100,000 for deployment projects, offering more flexibility for small businesses to receive funding so they can speed up getting their ideas to market.

With potential projects taking place across the East and West Midlands, North East, North West, and Yorkshire and the Humber as well as Wales and Northern Ireland, the government grants will enable businesses to use new technology to improve the efficiency of industrial processes and reduce energy demand.

They will drive them towards a cleaner, more sustainable future as part of the green industrial revolution by 2030 and mission to eliminate the UK's contribution to climate change by 2050.

This includes factories installing electric motors and heat pumps to replace their natural gas-fired boilers and steam turbines, manufacturers...