Phase 3 Industrial Energy Transformation Fund Spring 2024

Key Features

The Industrial Energy Transformation Fund (IETF) supports the development and deployment of technologies that enable businesses with high energy use to transition to a low carbon future.

Programme:     IETF

Award:     Share of up to £185 million

Opens: 29th Jan 2024

Closes: 19th Apr 2024

! This scheme is now closed

Overview

IETF Phase 3: Spring 2024 will allocate grant funding for the following project types:

  • studies – feasibility and engineering studies to enable companies to investigate identified energy efficiency and decarbonisation projects prior to making an investment decision
  • energy efficiency – deployment of technologies to reduce industrial energy consumption
  • decarbonisation – deployment of technologies to achieve industrial emissions savings

The IETF Phase 3 budget is £185 million overall. This will be allocated across 2 competition windows in 2024. We will allocate funding to the highest quality applications that are submitted in the first window, with any remaining budget allocated in the second window.

Please note that IETF funding is only applicable to England, Northern Ireland and Wales.

Scope

Funding will be allocated across three competition strands:

  • Studies: feasibility and engineering studies to enable businesses to investigate identified energy efficiency and decarbonisation projects prior to making an investment decision
  • Energy Efficiency: deployment of technologies to reduce industrial energy consumption
  • Decarbonisation: deployment of technologies to achieve industrial emissions savings

Businesses are invited to bid into any one or more strands, provided their proposal or proposals is/are in scope of the competition’s objectives and meets/meet the eligibility criteria for each strand. Proposals must aim to improve the performance, emissions, and environmental outcomes of the industrial process beyond standards currently required by relevant UK and international law.

Eligibility

The Phase 3: Spring 2024 competition is open to businesses of any size with an eligible site in England, Wales or Northern Ireland.

Some IETF funding rules may differ for businesses based in Northern Ireland.

If your site is based in Scotland, please refer to the range of support offered by the Scottish Government. Contact SIETF@gov.scot for more information.

Your business must be in one of the following categories:

  • Mining and quarrying
  • Manufacturing
  • Recovery and recycling of materials
  • Data centre
  • Industrial Laundries
  • Controlled Environment Horticulture

See the application guidance for a full list of applicable SIC codes.

There are no limits on the number of proposals you can submit. You may also aggregate deployment project proposals to ensure that the total grant request exceeds the minimum grant thresholds.

See guidance notes here for more information

Changes from previous phases

Changes in IETF Phase 3 from previous phases include:

  • sector scope has been expanded to include:
    • controlled environment horticulture activities
    • industrial laundries
    • textile renting facilities
  • coal mining activities are no longer eligible for IETF funding
  • companies registered in Scotland but with industrial sites in England, Wales or Northern Ireland are able to apply to the IETF, providing they meet other eligibility requirements
  • the minimum grant threshold has been lowered from £100,000 to £75,000 for small and medium enterprises (SMEs) only, and the SME application process will be simplified
  • deployment project applicants requesting a grant of £5 million or above must submit a feasibility study or engineering study to support their application

The government response to the recent IETF Phase 3 consultation provides more detail of changes to the IETF.

Funding Costs

The IETF will allocate up to £185m budget for Phase 3 on a first come first serve basis, over two application windows. The second application window is currently anticipated to open in June or July 2024.

Interested in applying for this competition?

Book an appointment to speak to one of our advisors to discuss your eligibility to apply for this Grant Funding opportunity.