Published on: 25 January 2024
On 22 January 2024, the Department for Energy Security and Net Zero (DESNZ) launched Phase 3 of the Industrial Energy Transformation Fund (IETF), providing an additional £185m capital investment support to industry.
The funding will support industrial sites in England, Wales and Northern Ireland to cut their energy bills and decarbonise their industrial processes through investing in energy efficiency and deep decarbonisation technologies.
The Phase 3 Spring 2024 competition window opens on Monday, 29 January 2024. The competition is available to a range of industrial sites, from manufacturing, mining, quarrying, material recycling and data centres, both within and outside the industrial clusters.
The competition will provide grant funding towards the costs of:
- Feasibility and engineering studies for potential deployment projects. If implemented, it will deliver energy efficiency or decarbonisation benefits, enabling decision-makers to make informed investment choices.
- Deployment of mature energy efficiency technologies that improve industrial energy efficiency and reduce energy demand (TRL 7-9).
- Deployment of deep decarbonisation technologies that reduce carbon emissions associated with the industrial process (TRL 7-9).
Changes in IETF Phase 3 from previous phases include:
- IETF will expand its sector scope to include Controlled Environment Horticulture activities and industrial laundries and textile renting facilities.
- Companies with industrial sites located in England, Wales or Northern Ireland, but registered in Scotland, will be able to apply to the IETF, providing they meet other eligibility requirements.
- The IETF will lower the minimum grant threshold from £100,000 to £75,000 for Small and Medium Enterprises (SMEs) only, and in tandem will look to simplify the application process.
- Applicants for deployment projects requesting a grant of £5 million or above must submit a feasibility study or engineering study to support their application.
On Tuesday 6 February 2024, DESNZ, in partnership with Innovate UK KTN, will host an online briefing event to share details of the scope, eligibility and application process for the new IETF Phase 3 competition window.