Energy intensive businesses secure £24.3m government support to become more efficient

26 businesses, including a number of major manufacturers in the North-west, have been awarded a share of £24.3 million from the Industrial Energy Transformation Fund (IETF).

The Industrial Energy Transformation Fund (IETF) supports businesses using high amounts of energy to reduce their fossil fuel using innovative low-carbon technologies. A total of £289 million is being made available to businesses through the IETF up to 2027, with over £60 million allocated so far.

Energy-intensive industries are responsible for 11% of the UK’s total emissions and represent over 70% of UK industrial emissions. It is estimated that industry will need to cut their emissions by two thirds by 2035 for the UK to achieve its net zero target.

Greater Manchester-based recipients of the latest round of IETF funding include Heineken, which has received £3.7 million to recycle waste heat from its refrigeration systems; and Cargill, which has secured £1 million to reduce emissions and improve energy efficiency of its glucose manufacturing process through the installation of an electric heat pump.

Minister for Energy Efficiency Lord Callanan said:

“We are leading the world in reaching net zero, having cut emissions by over 44% since 1990 – but to keep up this progress and achieve our green goals, we’ve got to transform our industrial sectors, as some of the industries most critical to our economy are also those with the highest emissions.

“Today, we’re backing them with government funding to use the latest technologies to cut their emissions and their reliance on fossil fuels – helping to future-proof these industries as we grow our green economy.

“This will not only cut their energy costs but also boost their competitiveness on the world stage, helping them thrive and protecting the thousands of jobs they offer across the country.

Matt Callan, Senior Director Supply Chain at Heineken UK, said:

“We are proud to have ambitious targets when it comes to reducing our carbon footprint, within both our own operations and across our entire value chain. For over 150 years, we have been passionate about making a positive impact and more than ever it is clear that there is no time to waste in taking action to reduce carbon emissions.

“This investment and IETF funding will enable us to act faster, and with the commitment and passion of our colleagues and partners, will help us raise the bar at our Manchester Brewery to brew our beers in a more sustainable way.

“The project will make a significant contribution on our journey to carbon neutrality and provide us with the learnings to reapply across our other sites as we continue our journey to brew a better world.”