DESNZ launches new Phase 3 Industrial Energy Transformation Fund
On 22 January 2024, the Department for Energy Security and Net Zero (DESNZ) launched Phase 3 of the Industrial Energy Transformation Fund (IETF), providing an additional £185 million capital investment support to industry.
The funding will support industrial sites in England, Wales and Northern Ireland to cut their energy bills and decarbonise their industrial processes through investing in energy efficiency and deep decarbonisation technologies.
The Phase 3 Spring 2024 competition window will open on Monday 29 January 2024. The competition is open to a range of industrial sites, from manufacturing, mining, quarrying, material recycling and data centres, both within and outside the industrial clusters.
The competition will provide grant funding towards the costs of:
- Feasibility and engineering studies for potential deployment projects that will deliver energy efficiency or decarbonisation benefits if implemented, enabling decision-makers to make informed investment choices
- Deployment of mature energy efficiency technologies that improve industrial energy efficiency and reduce energy demand (TRL 7-9)
- Deployment of deep decarbonisation technologies that reduce carbon emissions associated with the industrial process (TRL 7-9)
Changes in IETF Phase 3 from previous phases include:
- IETF will expand its sector scope to include Controlled Environment Horticulture activities and industrial laundries and textile renting facilities.
- Companies with industrial sites located in England, Wales or Northern Ireland, but registered in Scotland, will be able to apply to the IETF, providing they meet other eligibility requirements.
- The IETF will lower the minimum grant threshold from £100,000 to £75,000 for Small and Medium Enterprises (SMEs) only, and in tandem will look to simplify the application process.
- Applicants for deployment projects requesting a grant of £5 million or above must submit a feasibility study or engineering study to support their application.
On Tuesday 6 February 2024, DESNZ, in partnership with Innovate UK KTN, will host an online briefing event to share details of the scope, eligibility and application process for the new IETF Phase 3 competition window.
Other Support services
IETF Networking Platform
A dedicated online networking platform with over 400 people already registered. Join the community and DM to arrange meetings and find partners.
IETF Technology Marketplace
An online platform with videos from industrial sites previously funded by the IETF to share ideas on how they have decarbonised their sites with support from IETF.
IETF Podcast Series
To give you inspiration why not listen to our short podcast series where we speak to previously funded Industrial sites.
Industrial Site Videos
Watch a series of videos filmed at industrial sites funded by IETF in Phase 1 to give you ideas of what you could deploy at your site.
Related Events and Recordings
Industrial Energy Transformation Fund 2024 update
Find out more about the Industrial Energy Transformation Fund’s activities in 2024.
Industrial Energy Transformation Fund Podcast Series
Innovate UK and The Department for Energy Security and Net Zero (DESNZ) are pleased to share this short podcast series with you. The discussion, led by Innovate UK KTN’s Jenni McDonnell MBE, will talk to different stakeholders including policy makers, industrial sites and delivery partners who are helping industrial sites to understand what they could achieve by taking advantage of this opportunity.