Industrial Energy Transformation Fund (IETF) Phase 2: Summer 2022

Key Features

Phase 2 of the IETF provides grant funding for feasibility and engineering studies, and for the deployment of industrial energy efficiency and deep decarbonisation projects.

Programme:     BEIS

Award:     Share of up to £70 million

Opens: 30th May 2022

Closes: 9th Sep 2022

Overview

The Industrial Energy Transformation Fund (IETF) supports industrial sites with high energy use to transition to a low carbon future. The fund targets existing industrial processes, helping industry to:

  • cut energy bills by investing in more efficient technologies; and
  • reduce emissions by bringing down the costs and risks associated with investing in deep decarbonisation technologies.

Funding is allocated through a competitive process aimed at supporting the highest quality and most transformational bids. The fund is open to a broad range of industrial sectors and will support applicants based in England, Wales, and Northern Ireland, both within and outside of industrial clusters.

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
  • Deep 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.

Businesses should only apply if the project or study could not go ahead without government support. You must include a  justification for the costs claimed in your application. It is your responsibility to demonstrate that your stated eligible costs are necessary in order to achieve the objectives of the competition strand you apply for. If your project passes assessment, but BEIS determine that you have requested more funding than needed, you may be offered a lower grant amount.

 

Eligibility

You will first be asked to provide information that will help BEIS to assess the eligibility of your proposal and check that it is in scope of the competition.

There are a range of criteria that your proposal must meet to be eligible for funding. Please see guidance for eligibility criteria here.

Following submission of your application, your eligibility will be checked and you may be asked to provide further evidence. Applications which pass the eligibility checks will be put forward for assessment.

To lead an application your organisation must be a registered business in England, Wales or Northern Ireland.

You may work with subcontractors to carry out your project or study, and they must be selected through your usual procurement process.

BEIS will allow previously unsuccessful proposals to re-apply to subsequent competition rounds (this includes unsuccessful proposals that originally applied for the Summer 2020 and Spring
2021 rounds of Phase 1, and the Autumn 2021 and Spring 2022 windows of Phase 2).

Exclusions

The BEIS aims to fund projects that transform industrial energy efficiency or industrial emissions. BEIS will therefore not fund projects for which there is existing support through government schemes or an established market.

The BEIS will only support proposals that are aligned with the Net Zero pathway for industry.

For further exclusions, please see here

Funding Costs

The budget for the Phase 2 Summer 2022 competition is up to £70m.

The remainder of the Phase 2 funding will be allocated across a further competition window which is currently anticipated to open in October 2022, enabling industry to apply in line with internal investment and replacement cycles.

BEIS have anticipated budgets for each window, but these remain flexible and the IETF is intended to evolve over its lifetime. BEIS reserves the right at its absolute discretion to increase or decrease the size of the funding rounds at any time and for any reason. The launch of this round of IETF funding does not guarantee the availability of any funding now or in the future.

All IETF funding must be spent by March 2025 so we encourage applicants with large or lengthy projects to apply as early as possible in order to fit within these time frames

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.