£185 million phase of support to launch to help manufacturers and industrial businesses cut emissions and energy use

A new phase of the Industrial Energy Transformation Fund is to launch to support manufacturers to reduce CO2 emissions and energy consumption.

The fund will support businesses with a further £185 million to help companies transform their operations with new, more efficient equipment, or switch to cleaner energy sources, such as electricity or hydrogen.

Sectors including manufacturing, recycling, controlled-environment horticulture and industrial laundries are among those eligible for apply for this new round of support. The new round of funding through the Industrial Energy Transformation Fund will open on 29th January and form part of the government’s commitment to invest £12 billion in improving energy efficiency for both households and businesses by 2038.

Minister for Energy Efficiency and Green Finance, Lord Callanan said:

“From manufacturing chemicals to food and drink, UK industry is at the heart of our economy.

“With over £190 million available for businesses to make the move to cleaner, cheaper energy – and with 12 projects benefiting directly today – we are delivering the support they need to decarbonise.

“I look forward to seeing the plans developed by the successful clusters and encourage other businesses to apply to our Industrial Energy Transformation Fund, which has already made awards to over 150 projects to help companies go green.“

The announcement of a new phase of support through the Energy Transformation Fund comes alongside the reveal of winners of the Local Industrial Decarbonisation Plan competition. 12 UK manufacturers have been awarded a share of £6 million to support their efforts to cut CO2 emissions and reduce energy costs, with funding targeted at businesses outside of Britain’s traditional manufacturing heartlands, which account for 55% of the country’s industrial emissions.