NEWS

THE UK GOVERNMENT HAS ALLOCATED £350M UNDER INDUSTRIAL ENERGY TRANSFORMATION FUND

The UK Government has allocated £350 million under the Industrial Energy Transformation Fund Scheme.  The first round of funding was launched last Autumn.  The second round of funding is due to come out in March, with a funding pot totalling £40 million, with a further round expected later this year.

Glass Futures has experience of applying into this funding scheme and can provide industrial partners with assistance in writing a funding application.  Should you be successful, Glass Futures is also able to provide support to manage and run a project.

The funding provides a grant to subsides the deployment of measures/infrastructure that will improve energy efficiency and reduce carbon emissions.  Engineering studies to scope out potential large CAPEX investments are also included.

The funding covers most energy efficiency measures, including furnace improvements, new inspection/control systems, digital control systems and investments that switch from natural gas to electricity, hydrogen or biofuels.  Each bid must focus on one site, however multiply projects can be included in each bid.

Projects can have costs of up to £14 million, with the organisation being allowed to claim a grant of between 30-40% project costs (this includes labour costs and overheads, as well as materials/consumables/energy required for trials and support from overseas partners/parent company).  The project can include project partners, including research partners, such as Glass Futures, who can reclaim up to 100% of their costs. 

Examples of projects that can be funded:

  • 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
  • Feasibility or engineering studies for energy efficiency solutions

Examples of areas that are ineligible:

  • Repair and maintenance projects that would be undertaken in the normal course of business
  • 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
  • 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 plant

Further details can be found on the following government website:  Competition overview – IETF deployment of energy efficiency technologies, Spring 2021 – Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)