What is the Business Support?
Currently Closed to new applicants
The Industrial Energy Transformation Fund (IETF) supports industrial sites with high energy use to transition to a low carbon future. The fund targets existing industrial processes, helping industry to:
- cut energy bills by investing in more efficient technologies
- reduce emissions by bringing down the costs and risks associated with investing in deep decarbonisation technologies.
Funding is allocated through a competitive process aimed at supporting the highest quality and most transformational bids. The fund is open to a broad range of industrial sectors and will support applicants based in England, Wales, and Northern Ireland, both within and outside of industrial clusters. For further information on the policy rationale behind the Fund’s design please read the Industrial Energy Transformation Fund Phase 2 Policy Statement.
The Department for Business, Energy and Industrial Strategy (BEIS) manages the IETF for England, Wales and Northern Ireland, with £289 million to invest by 2025. This funding will be allocated through consecutive application windows split into two phases. This guidance document relates to Phase 2 of the IETF, and specifically the second application window of Phase 2 (Spring 2022).
Funding will be allocated across three competition strands:
- Studies: feasibility and engineering studies to enable businesses to investigate identified energy efficiency and decarbonisation projects prior to making an investment decision
- Energy Efficiency: deployment of technologies to reduce industrial energy consumption
- Deep Decarbonisation: deployment of technologies to achieve industrial emissions savings
Businesses are invited to bid into any one or more strands, provided their proposal or proposals is/are in scope of the competition’s objectives and meets/meet the eligibility criteria for each strand. proposals must aim to improve the performance, emissions, and environmental outcomes of the industrial process beyond standards currently required by relevant UK and international law.
Businesses should only apply if the project or study could not go ahead without government support. You must include a justification for the costs claimed in your application. It is your responsibility to demonstrate that your stated eligible costs are necessary in order to achieve the objectives of the competition strand you apply for.
This guidance sets out in more detail the eligibility and assessment criteria for each strand. It also describes the processes for the application, assessment and award stages of the competition.
Phase 2 Spring 2022 competition will:
- open for applications 11am (GMT) on 31st January 2022
- close to applications at 3pm (GMT) on 29th April 2022
- Feasibility studies must start no later than 1st May 2023 and finish no later than 1st May 2024;
- Engineering studies must start no later than 1st May 2023 and finish no later than 31st March 2025;
- Energy Efficiency and Deep Decarbonisation Deployment Projects must start no later than 1st May 2023 and finish no later than 31st March 2025
You will be informed whether you have been successful or not after the initial assessment in Autumn 2022. Success at this stage does not guarantee funding. Any funding will remain subject to completion of due diligence to BEIS’ satisfaction and agreement to our proposed Grant Funding Agreement.
For eligibility information please click here.
How to find out more?
To find out more information please click here.
What grant amounts are available?
Industrial Energy Transformation Fund