Industrial Energy Transformation Fund (IETF) Phase 3: Spring 2024

Grant funding for feasibility and engineering studies, and for the deployment of industrial energy efficiency and deep decarbonisation projects.

Opportunity Details

When

Registration Opens

29/01/2024

Registration Closes

19/04/2024

Award

Feasibility studies: £30k-£7m per project. Engineering studies: £50k-£14m per project. Energy efficiency: £75k-£14m per project. Decarbonisation: £75k-£30m per project. This can cover up to 70% of costs depending on project size and business type (with some SME projects possibly receiving more depending on location).

Organisation

DSIT
Innovate UK

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IETF Phase 3: Spring 2024 will allocate grant funding for the following project types:

  • studies – feasibility and engineering studies to enable companies to investigate identified energy efficiency and decarbonisation projects prior to making an investment decision
  • energy efficiency – deployment of technologies to reduce industrial energy consumption
  • decarbonisation – deployment of technologies to achieve industrial emissions savings

The IETF Phase 3 budget is £185 million overall. This will be allocated across 2 competition windows in 2024. We will allocate funding to the highest quality applications that are submitted in the first window, with any remaining budget allocated in the second window.

Please note that IETF funding is only applicable to England, Northern Ireland and Wales. Organisations in Scotland should contact SIETF@gov.scot for more information.

  • The Phase 3: Spring 2024 competition is open to businesses of any size with an eligible site in England, Wales or Northern Ireland.

    Some IETF funding rules may differ for businesses based in Northern Ireland.

    If your site is based in Scotland, please refer to the range of support offered by the Scottish Government. Contact SIETF@gov.scot for more information.

    Your business must be in one of the following categories:

    • Mining and quarrying
    • Manufacturing
    • Recovery and recycling of materials
    • Data centre
    • Industrial Laundries
    • Controlled Environment Horticulture

    See the application guidance for a full list of applicable SIC codes.

    There are no limits on the number of proposals you can submit. You may also aggregate deployment project proposals to ensure that the total grant request exceeds the minimum grant thresholds.

  • Changes in IETF Phase 3 from previous phases include:

    • sector scope has been expanded to include:
      • controlled environment horticulture activities
      • industrial laundries
      • textile renting facilities
    • coal mining activities are no longer eligible for IETF funding
    • companies registered in Scotland but with industrial sites in England, Wales or Northern Ireland are able to apply to the IETF, providing they meet other eligibility requirements
    • the minimum grant threshold has been lowered from £100,000 to £75,000 for small and medium enterprises (SMEs) only, and the SME application process will be simplified
    • deployment project applicants requesting a grant of £5 million or above must submit a feasibility study or engineering study to support their application

    The government response to the recent IETF Phase 3 consultation provides more detail of changes to the IETF.

  • IETF Phase 3: Spring 2024 will allocate grant funding for the following project types:

    • studies – feasibility studies (£30k-£7m per project) and engineering studies (£50k-£14m per project) to enable companies to investigate identified energy efficiency and decarbonisation projects prior to making an investment decision
    • energy efficiency – deployment of technologies to reduce industrial energy consumption (£75k-£14m per project)
    • decarbonisation – deployment of technologies to achieve industrial emissions savings (£75k-£30m per project)

    The percentage of costs that can be covered by the IETF grant varies considerably depending on project type, business size, and location (the highest possible is 85%). Please consult the guidance notes for full details.

    All successful proposals must start no later than 1st July 2025, and finish no later than 31st March 2028.

  • 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
    • 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.

    Full details of the scope for each strand can be found in the competition guidance.

  • If you need more information about Phase 3 of the IETF, including questions about the application process or portal, please contact the DESNZ IETF team at ietf@energysecurity.gov.uk.

    Stakeholder events and clinics

    We run events and clinics throughout the competition window to inform businesses about the scope of the competitions, eligibility criteria and the application process. These are also opportunities for you to speak to us directly about potential projects and applications for funding:

    There will be 2 Phase 3 competition windows in 2024:

    • Spring 2024, 29 January – 19 April
    • Summer 2024, June / July – September
  • Click here for a list of frequently asked questions.

    Additional resources:

Once you have registered to apply using the link above, you will receive a password and link to the online application forms. Submit your IETF application forms by 3pm, Friday 19 April 2024. Lead applicants must submit one Applicant Details form, and a further application form for each proposal you want to apply for during this competition window.

Jenni McDonnell MBE

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Jenni McDonnell MBE

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