The IETF will support businesses with high energy use to transition to a low carbon future, and to cut their bills and emissions through increased energy efficiency and decarbonisation. It is a crucial part of the Government’s strategy for tackling climate change and reaching Net Zero by 2050. It complements other government programmes that offer innovation and early demonstration support, such as the Industrial Energy Efficiency Accelerator and Industrial Fuel Switching (part of the Net Zero Innovation Portfolio) and will help to transform an important part of the UK economy.

The Phase 2 competition for England, Wales and Northern Ireland opens on the 31st January 2022 and runs until 29th April 2022 and is worth up to £60 million in funding. It will be available in the form of a grant scheme and will fund:

  • Studies – feasibility and engineering studies to investigate identified energy efficiency and decarbonisation projects prior to making an investment decision.
  • Energy Efficiency projects – deployment of technologies to reduce industrial energy consumption. TRL 8-9
  • Deep Decarbonisation projects – deployment of technologies to achieve industrial emissions savings. TRL 7-9

If your site is based in Scotland, you can apply for the Scottish Industrial Energy Transformation Fund (SIETF): contact IETF@gov.scot for more information.

Industry type

Your business must operate an existing site which falls into one of the following SIC codes:

  • Mining and quarrying: SIC codes 05101 through to 05200, 07100 through to 08990, and 09900
  • Manufacturing: SIC codes 10000 through to 33200
  • Recovery and recycling of materials: SIC codes 38320
  • Data centre: SIC code 63110

Please check the SIC code you were allocated at the time of registering at Companies House. If the parent company SIC Code does not reflect the activity carried out at your site, for example where a data centre is owned by a telecoms company, you may still be eligible.

The funding will be awarded as grants towards the total costs of successful proposals. The minimum and maximum grant available for each category is below: this can cover 25% to 70% of costs depending on project type and business size.

  • Energy efficiency deployment projects can apply for grants of £100,000 to £14 million
  • Deep decarbonisation deployment projects can apply for grants of £100,000 to £30 million
  • Engineering studies can apply for grants of £50,000 (total eligible cost) to £14 million
  • Feasibility studies can apply for grants of £30,000 (total eligible cost) to £7 million

If you need more information about Phase 2 of the IETF or the application process for England, Wales and Northern Ireland, please contact the BEIS IETF team at ietf@beis.gov.uk.

Innovate UK KTN will run an online IETF Phase 2 briefing webinar, Tuesday 1 February 2022, 10am to 12.45pm; click here to register for a place.

To find out about past competition winners, visit the Summer 2020 winners page.