The Department for Business, Energy and Industrial Strategy (BEIS) has opened the application window for Phase 2 of the Industrial Energy Transformation Fund (IETF).
Phase 2 provides £70 million of grant funding for industrial businesses to carry out feasibility and engineering studies, or to deploy energy efficiency and deep decarbonisation projects.
What is IEFT?
The Industrial Energy Transformation Fund (IETF) was announced in the 2018 Autumn Budget, with the goal of reducing energy costs and emissions for industry, particularly for energy intensive companies and hard-to-abate sectors.
The government has announced the commencement of Phase 2 of this plan, which will focus specifically on supporting the deployment of deep decarbonisation technologies. While Phase 1 focused on supporting feasibility, FEED studies and deployment of energy efficiency measures, Phase 2 will be utilising this acquired knowledge to support implementing actionable change.
Who can apply for funding?
The IETF is aimed at supporting businesses with high energy use in England, Wales, and Northern Ireland. This includes industries such as brick and cement, that often require high levels of heat generation. Businesses must operate a site that falls into one of the eligible SIC codes – which can be found on the government’s IETF webpage.
The application window opened 10 October 2022 and the deadline has been extended until 17 February 2023.
Grants are available to fund:
- Feasibility and engineering studies for potential deployment projects that will deliver energy efficiency or decarbonisation benefits if implemented, enabling decision-makers to make informed investment choices
- Deployment of mature energy efficiency technologies that improve industrial energy efficiency and reduce energy demand (Technology Readiness Level (TRL) 8-9)
- Deployment of deep decarbonisation technologies that reduce carbon emissions associated with the industrial process (TRL 7-9)
Key dates and application information
The application opened 10 October 2022 and the deadline has been extended to 17 February 2023. All applications must be submitted via the online application form.
Some IETF funding rules may differ for businesses based in Northern Ireland. If your site is based in Scotland, you can apply for the Scottish Industrial Energy Transformation Fund (SIETF). Contact IETF@gov.scot for more information.
The government says this is the last currently planned application window, so encourages businesses to apply if they have a suitable project.
Funding will be awarded as grants towards the total costs of successful proposals, which must fall within minimum and maximum guidelines.
Guidance and instructions for applicants can be found here.