Energy Efficiency and Green Finance Minister Lord Callanan announced that a new phase of the £185 million Industrial Energy Transformation Fund will open, which will help businesses transform their operations to run on cleaner and safer energy, supporting measures such as replacing inefficient equipment, installing electric ovens and switching to hydrogen. The funding ensures that companies are supported in the transition to net-zero energy in a sustainable and cost-effective manner, securing green industrial jobs for the future. 

Sectors such as manufacturing and recycling and, for the first time, controlled environment horticulture, industrial laundries and textile rental facilities - will be among those eligible to apply for these new grants, as part of the Government's wider efforts to achieve the UK's net zero production targets.

This funding will give the winning companies and their partners the opportunity to work together on plans to reduce their emissions, learning from each other and also having access to technical advisors to prepare them to adopt measures such as the use of hydrogen or carbon capture.

Specifically, they will be targeted at projects outside the UK's main industrial areas, from a Yorkshire pet food manufacturer to a ferry operator in Poole. 55% of the country's industrial emissions are from businesses located in dispersed locations away from industrial centers.

Minister for Energy Efficiency and Green Finance Lord Callanan said:  

“With over £190 million available for businesses to make the move to cleaner, cheaper energy – and with 12 projects benefiting directly today – we are delivering the support they need to decarbonise.”

“I look forward to seeing the plans developed by the successful clusters and encourage other businesses to apply to our Industrial Energy Transformation Fund, which has already made awards to over 150 projects to help companies go green.”

This funding is in addition to that recently announced by the Minister awarding the 12 winners of the Local Industrial Decarbonization Plan competition, who will benefit from a share of up to £6 million to develop plans for a low-carbon future.