£31 million invested to help industry cut use of fossil fuels

The government has announced new funding of over £31 million to help industry reduce its dependence on fossil fuels and cut CO2 emissions.

Funding announced on 31st May includes support to help businesses move away from red diesel or gas oil for plant, particularly in quarrying and construction. Funding will also support investment in alternative fuels for machinery, including e-fuels and green hydrogen. The funding forms part of the Red Diesel Replacement competition.

£5.5 million is also being invested to develop technologies that support industry to cut back use of high carbon fuels and switch to cleaner power sources, such as hydrogen, electrification or fuel from biomass and waste products. Funding will be awarded to winners of the first phase of the Industrial Fuel Switching competition.

£12 million will also go to projects aiming to advance Carbon Capture Usage and Storage projects (CCUS) technology, harnessing CO2 emissions for use in other industrial processes. A UK-based CCUS industry has the potential to create significant numbers of jobs in the UK, particularly in more deprived industrial regions, as well as supporting sectors such as power, cement, chemicals and refining to reduce their emissions.

Energy and Climate Change Minister Greg Hands said:

“As we accelerate the UK’s energy independence by boosting clean, home-grown, affordable energy, it’s crucial that our industries reduce their reliance on fossil fuels.

“This investment will help them to not only cut emissions, but also save money on energy bills, on top of supporting jobs by encouraging green innovation across the UK.”