Industrial Energy Transformation Fund Phase 2: Spring 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:     Up to £60 million

Opens: 31st Jan 2022

Closes: 29th Apr 2022

! This scheme is now closed


The Industrial Energy Transformation Fund (IETF) supports industrial sites with high energy use to transition to a low carbon future. The Fund targets 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 will be allocated across three competition strands:

  • 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
  • Deep Decarbonisation: deployment of technologies to achieve industrial emissions

Companies 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.

Competition Budget

IETF aim to split Phase 2 into 4 windows, worth around £220m. The budget for the Phase 2 Spring 2022 competition is up to £60m

See guidance for further information.


IETF will ask you to provide information that will help assess the eligibility of your proposal and check that it is in scope of the competition.

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

The lead applicant must:

  • claim costs as part of the project or study
  • use energy or produce direct emissions as a result of their own industrial processes at an existing site or sites
  • be the end beneficiary of the study or deployed technology and owner of the industrial

Lead applicants can collaborate with other organisations provided the project partners claiming grant funding meet the criteria below. To collaborate with the lead your organisation must:

  • be a business of any size, a research organisation, a research and technology organisation, an academic institution, charity or a public sector organisation.
  • be registered in England, Wales or Northern Ireland
  • carry out its project work in relation to the lead applicant’s site located in England, Wales or Northern Ireland

Subcontractors are allowed in this competition.


The IETF will only support proposals that are aligned with the Net Zero pathway for industry. For these reasons, proposals which fall under the headings below are not in scope of the current competition.

  • New builds and expansions
  • Repair and maintenance
  • Building improvements
  • Plant closure projects
  • Production of fuels
  • Electricity generation
  • Combined heat and power plant installations and upgrades
  • Energy efficiency and decarbonisation measures in transportation

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.