IETF deployment of energy efficiency technologies in industry

Organisations can apply for a share of up to £30 million for grants for energy efficiency projects that reduce fuel bills and carbon emissions.

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Opportunity Details


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The minimum grant companies of any size can receive is £250,000. Maximum project cost is £3m, and the award can cover up to 65% of project costs depending on company size and location.


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This Industrial Energy Transformation Fund (IETF) competition is offering up to £30 million, split across 2 strands, to fund feasibility, engineering studies and deployment. In this strand projects must deploy technologies to improve the energy efficiency of industrial processes.

In this strand, industrial businesses of any size can apply, either on their own or in collaboration with other organisations. The lead applicant must operate at an eligible site in England, Wales or Northern Ireland at which the project is carried out.

The other competition strand, IETF industrial energy efficiency and decarbonisation studies, will support feasibility and engineering studies to develop energy efficiency and deep decarbonisation projects that enable possible subsequent deployment.

Your project must:

  • start by 1 April 2022
  • end by 31 March 2024
  • have a minimum total grant funding of £250,000

At the end of your project you must have installed and begun to operate (or be ready to operate) the energy efficiency technology.

If you are requesting a grant that exceeds £3 million, you must inform Innovate UK before submitting an application. This must be by email to at least 15 working days before the competition closes. Include the technology your project is focusing on and the total grant you expect to apply for.

To lead a project or work alone your organisation:

  • must be a business of any size registered in England, Wales or Northern Ireland
  • must operate at the manufacturing site or data centre in England, Wales or Northern Ireland where the project is carried out
  • can collaborate with other businesses, research organisations, research and technology organisations (RTO), academic institution or public sector organisations which must all be registered in England, Wales or Northern Ireland
  • must carry out its project work in England, Wales or Northern Ireland

Academic institutions cannot lead or work alone.

This competition is aimed at specific types of business. These are determined by a code allocated at the time of registering at Companies House, called a standard industrial classification (SIC) code.
You will need to check your business SIC code to make sure you are eligible. For this competition your business must be one of these:

  • manufacturing 10 to 33
  • data centres 63110

We have allocated up to £30 million to fund projects in this competition across 2 competition strands:

The majority of the funding will be used in this strand.

This strand of the competition will provide grants to improve the energy efficiency of industrial processes.

Your project must focus on deployment of technology that has been proven to work through successful operations and/or is qualified through test and demonstration. The technology must improve the energy efficiency of an industrial process or processes. Your project must only be possible because of this funding.

Example technologies include:

  • improved process control
  • more efficient heat exchange
  • more efficient drying
  • energy recovery from waste heat
  • energy recovery from waste pressure
  • resource process optimisation

You must follow the specific technical requirements.

We are not funding:

  • technologies that are not proven to work through successful operations and/or are not qualified through test and demonstration
  • repair and maintenance projects that would be undertaken in the normal course of business
  • plant closure projects
  • energy efficiency measures in transport, lighting, or building heating and cooling
  • electricity generation, such as solar, wind, combined heat and power

Online briefing events were held on 14th and 20th July: you can view the briefings below. Both covered the same subjects, so the one from 20th July is likely to include more information.

14th July

20th July


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