Industrial Energy Transformation Fund – What will the Competition Fund?

On 31^st January 2022, the Spring 2022 round of Industrial Energy Transformation Fund funding opened for applications. This BEIS (Department for Business, Energy and Industrial Strategy) competition supports industrial sites transition to low carbon energy solutions.

Industrial Energy Transformation Fund Competition Details

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 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

Industrial Energy Transformation Fund Funding

The budget for the Phase 2 Spring 2022 competition is up to £60m.

The remainder of the Phase 2 funding, £100m, will be allocated across two further competition windows which are currently anticipated to open in May 2022, and October 2022, enabling industry to apply in line with internal investment and replacement cycles.

Eligible Projects

The following includes details of what projects are eligible to apply for Industrial Energy Transformation Fund funding across the three competition strands.

Studies:

You can apply for grant funding towards the costs of feasibility and/or engineering studies. Studies should facilitate an investment decision in a specific technological solution.

A feasibility study will investigate the technical, economic, and operational impacts of deploying a technology solution within the applicant’s existing industrial process.

An engineering study is a detailed project plan that identifies specific technical and operational requirements, equivalent to a Front-End Engineering and Design (FEED) study. The final report must provide sufficient detail to enable your business to arrive at an investment decision.

Energy Efficiency Deployment:

You can apply for grant funding to support onsite deployment of technologies that will improve the energy efficiency of an industrial process. Businesses can apply for grant funding towards the costs of installing or retrofitting equipment on site.

Eligible technologies must have been proven to work through successful operation and/or be qualified through test and demonstration (TRL 8). The intention is to support the commercial roll out and permanent installation of technologies at industrial sites.

Deep Decarbonisation Deployment:

This strand will support onsite deployment of technologies that will reduce emissions generated by an industrial process. Businesses can apply for grant funding towards the costs of installing or retrofitting equipment on site.

To be eligible, technologies must have been developed at least as far as prototype stage (at least TRL 7) at the scale of the plant. The intention is to support the commercial roll out and permanent installation of technologies at industrial sites.

You can view the full guidance document for this competition here.

How TBAT can help

Our unique skillset allows us to be your ideal innovation support partner. We can help you by identifying funding opportunities suitable to your project, advising you regarding scope and eligibility criteria, writing and reviewing applications, and also manage your Grant Claims once your project begins.

If you’d like to discuss working with us for any of this, please get in touch.