Industrial heat recovery is a process by which heat generated in or for an industrial process, that otherwise would be wasted, is recovered and utilised. This waste heat can be used within the same industrial facility for heat or cooling, by another end-user (e.g. an existing heat network), or by converting the waste heat to power.

Industrial heat recovery has the potential to realise significant energy bill and carbon savings for industry through a reduction in primary fuel use.

BEIS has developed the Industrial Heat Recovery Support (IHRS) Programme to further understand the identified challenges and barriers to adoption, and to increase industrial confidence in deploying heat recovery technologies by working with industry to address these barriers.


The Programme will support the recovery of heat which meets the following criteria:

  • The heat should be generated in or for an existing industrial process but is currently emitted to the environment once utilised.
  • The heat should be carried in specific flows, including (but not limited to): hot flue gases, exhaust air, cooling fluids from cooling systems, hot product or waste product, hot water drained to a sewer, super heat or condenser heat rejected from refrigeration.
  • The heat should be recovered from these specific flows via an appropriate heat recovery technology and used in one of the following ways:
    • Immediate use on-site, to satisfy existing or potential commercially viable heating or cooling demand.
    • Use off-site, to satisfy existing or potential commercially viable heating or cooling demand, potentially through an existing heat network.
    • Conversion to electrical or mechanical power, for use on-site or at another industrial site to satisfy existing or potential commercially viable power demand, or for export to the national grid or private wire system.
  • The recovered heat should be capable of being metered or otherwise estimated, to enable monitoring and evaluation of the project.
  • The proposed user of the recovered heat or energy must be existing and in place.


To be eligible for funding, projects must:

  • be in England and/or Wales only
  • implement technologies that are TRL 9 or commercially available only
  • demonstrate value for money for BEIS

Applications are open to companies in all industrial manufacturing sectors as set out in the Office of National Statistics (ONS) Standard Industrial Classification (SIC) codes 10-33. Applications are also welcome from Data Centres, given their emerging significance and high impact potential.

Funding Costs

For Phase 1 Feasibility Study and Preliminary Engineering and Phase 2 Detailed Design projects:

  • For Small Enterprise – maximum of 70% and shall not exceed £450,000
  • For Medium Enterprise – maximum of 60% and shall not exceed £450,000

For Phase 2 Construction, Commissioning, Operation Start-up and Monitoring and Evaluation projects:

  • For Small Enterprise – maximum of 50% and shall not exceed £1.5 million
  • For Medium Enterprise – maximum of 40% and shall not exceed £1.5 million

For Phase 2 projects, an additional 5-15% may be added depending on project location.

All activities implemented under the programme must be completed before March 2022.

For further information on this competition, along with guidance documents, application forms and additional instruction of how to apply and FAQ’s – please visit the gov.uk webpage. 

Interested in applying for this competition?