The net zero transition and the rising price of carbon is another challenge for energy-intensive businesses. Because the UK government wants businesses in Energy Intensive Industries (EII) to remain competitive, it is offering various forms of support. We’ve outlined common questions on the Industrial Energy Transformation Fund (IETF).
What is the Industrial Energy Transformation Fund?
The Industrial Energy Transformation Fund (IETF) is funding to help businesses with high energy usage to cut their consumption through investment in energy efficiency measures and low carbon technologies. Phases 1 and 2 are now closed, but IETF Phase 3 will launch in early 2024.
Who benefits from the IETF?
The IETF is for businesses with specific projects designed to cut industrial energy use. Phases 1 and 2 allocated money for feasibility studies, industrial energy efficiency projects and deep decarbonisation technologies. It is not clear exactly how the funding for Phase 3 will be allocated, but there will be a consultation in late 2023 on the design of this phase.
Businesses in England, Wales and Northern Ireland can apply for the IETF. Businesses in Scotland can apply for the Scottish Industrial Energy Transformation Fund (IETF) instead.
Does my business qualify for the IETF?
For Phases 1 and 2, only businesses in specific sectors were eligible: mining and quarrying, manufacturing, recovery and recycling of materials and data centres. It is likely that this will also be the case for Phase 3, so your business will need to have one of the eligible SIC codes.
How do I apply for the IETF?
You can’t apply right now, but keep an eye on the Energy Advice Hub for the consultation on Phase 3 later this year and the opening of applications early next year. Phase 3 will be worth £185 million in funding.