Organisations can apply for a share of up to £40 million for grants to improve the energy efficiency of industrial processes, reducing energy bills and cutting carbon emissions.
Share of up to £40 million
8th Mar 2021
14th Jul 2021
This competition aims to support the commercial roll out and permanent installation of technologies at industrial sites. This is the second round of the IETF Phase 1 competition.
The Industrial Energy Technology Fund (IETF) will support the onsite deployment of technologies that improve the energy efficiency of an industrial process or processes.
This competition aims to support the commercial roll out and permanent installation of technologies at industrial sites.
Eligible technologies must have been proven to work through successful operations or be qualified through test and demonstration. This corresponds to Technology Readiness Levels (TRLs) of 8, 9 and above.
Energy saving solutions will differ from site to site, but some examples of eligible technologies include:
- monitoring and management equipment that improves the efficiency of processes
- more efficient heat exchange
- more efficient driers
- energy recovery from waste heat
- energy recovery from waste pressure
- onsite resource efficiency measures to reduce wastage and optimise use of raw materials.
- more efficient refrigeration or other cooling or heating measures necessary to create and maintain the operational temperature of the industrial process itself (including cooling technologies for data centres).
- fuel switching is permitted where it is essential to achieving energy efficiency improvements. Fuel switching must comply with eligibility criteria detailed in the supplementary Technological Scope for Energy Efficiency Studies and Deployment Projects guidance.
Through this strand of the competition, we are not funding:
- technologies that are not proven to work through successful operations or are not qualified through test and demonstration
- repair and maintenance projects that would be undertaken in the normal course of business
- feasibility or engineering studies for energy efficiency solutions
- plant closure projects
- new build plant or expansions
- energy efficiency measures that are not integral to the industrial process, including:
- building lighting
- space heating and cooling for buildings where not integral to the industrial process
- on or off-site transport
- electricity generation, including the installation of new renewable projects like solar panels or wind turbines
- fuel switching that does not achieve energy efficiency improvements.
- combined heat and power (CHP) upgrades to existing plants.
Interested in applying for this competition?
Book a 30-minute consultation
Our team are available to discuss your innovative business, your project ideas and how we can help you to write a successful application for this Grant Funding opportunity.
Use the calendar to select and book a consultation with one of our experts, at a time that’s convenient for you.
Your project must:
- start by 1 January 2023
- end by 31 December 2024
- have a minimum total grant funding of £100,000
At the end of your project you must have installed and begun to operate (or be ready to operate) the energy efficiency technology.
Your project work must be carried out at a single manufacturing site or data centre in England, Wales or Northern Ireland.
This competition is aimed at businesses that use energy or produce direct emissions as a result of their industrial processes.
IETF is not seeking to fund general research, development, and testing of a technology solution. Technology developers are not eligible to apply as lead applicants. Industrial processes refer to a set of economic activities as defined by the Standard Industrial Classification (SIC). Businesses are allocated a SIC code at the time of registering at Companies House. You will need to check your business SIC code to make sure you are eligible.
For this competition your business must fall into the following categories of activity:
- manufacturing SIC 10 (000) through to SIC 33 (200)
- data centres SIC 63 (110)
To lead a project your organisation must also:
- be a registered business of any size, in England, Wales or Northern Ireland
- carry out its project work at a site in England, Wales or Northern Ireland
A site is defined as the postcode, or multiple directly adjoining postcodes at which the project takes place.
The lead applicant must be the owner of the industrial process or data centre operator. A third party (for example, a consultancy or an energy service company) can prepare an application on behalf of the lead applicant. However, BEIS will not have a legal relationship with, or pay money to a third party.
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 or a public sector organisation. You must read the Supplementary Grant Award Guidance to find out which definition your organisation falls into.
- be registered in England, Wales or Northern Ireland
- carry out its project work in England, Wales or Northern Ireland
A total of £40 million has been allocated to fund 2 competition strands.
The minimum threshold for grant awards is £100,000 towards the total eligible costs of the project. The maximum grant funding that an individual project can claim is £14 million.
Your application can be made up of multiple projects and there is no minimum cost per project. You must make sure that:
- the total grant funding for each application is at least £100,000
- the total grant funding for individual projects does not exceed £14 million
The government can in certain circumstances, offer additional financial support to organisations acting economically if they are conducting projects located in specific geographical areas.
If your project is located in assisted area A you could receive funding for your eligible project costs of:
- up to 65% if you are a micro or small organisation
- up to 55% if you are a medium-sized organisation
- up to 45% if you are a large organisation
If your project is located in assisted area C you could receive funding for your eligible project costs of:
- up to 55% if you are a micro or small organisation
- up to 45% if you are a medium-sized organisation
- up to 35% if you are a large organisation
If your project is located in another area you could receive funding for your eligible project costs of:
- up to 50% if you are a micro or small organisation
- up to 40% if you are a medium-sized organisation
- up to 30% if you are a large organisation
For further information on assisted areas please see the Supplementary Grant Award Guidance.