This summer 2024, the UK Government is expected to release the final round of funding for the Industrial Energy Transformation Fund (IETF) which in total has made £500 million available for businesses to decarbonise.
The Phase 3 budget is £185 million overall, and the second competition window is set to open soon in July 2024.
This could be the last chance for organisations to benefit from financial support for renewable energy and energy efficiency projects.
At BHESCo (Brighton & Hove Energy Services Cooperative) we would like to encourage all eligible organisations to apply before it is too late.
Here we answer frequently asked questions about the IETF and outline key eligibility factors.
“We’re keen to support more businesses in their decarbonisation journey, by helping to identify viable and eligible projects, while supporting them to apply for IETF funding”.
Kayla Ente MBE, Founder & CEO, BHESCo (Brighton & Hove Energy Services Cooperative).
What is the Industrial Energy Transformation Fund?
The IETF funding is designed to support high energy usage businesses in England, Wales, and Northern Ireland, to invest in the technologies needed for the transition to a low carbon future. As the name suggests, the Industrial Energy Transformation Fund specifically targets industrial process emissions and energy consumption.
The decarbonisation challenge
We understand that many business projects that aim to reduce their environmental impact can face challenges in getting started. The IETF can help by providing vital support to your business financially, deploying funding and enabling your decarbonisation projects to progress.
At BHESCo we are keen to work with businesses to identify eligible projects that can support meeting the challenge of transitioning away from carbon-heavy processes, and towards Net Zero targets.
What projects are eligible for funding from Phase 3 of IETF?
The fund is available to businesses in England, Wales and Northern Ireland operating in specific SIC codes for industries including; Mining and Quarrying, Manufacturing, Recovery and Recycling of Materials, Data Centre, Industrial Laundries, Controlled Environmental Laundries.
Full details of the SIC codes that were eligible in the previous window of Phase 3 are viewable within the advice for applicants document, at the government website. For businesses in Scotland a different fund is available.
Government advice outlines that grant funding is available for projects in three different 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
How do I find my SIC code?
UK companies can choose up to 4 SIC codes to represent their business when registering a company. To check the SIC code(s) of your organisation, it may be easiest to view at Companies House website. After searching and finding your organisation at Companies House, the SIC code displayed will be under the title “Nature of Business”.
Latest window for applications for government decarbonisation funding to be announced soon
A new funding round is set to be announced in Summer 2024, with funding available for feasibility studies, energy efficiency and decarbonisation deployment. We are expecting the summer competition window for applications to open soon (late June/ early July 2024).
Previous competition windows have been open for a short time (2 – 3 months), so we urge businesses to prepare to apply.
You can resubmit an application that was previously not successful and you can also submit an application for a new project, or multiple projects, even if you were successful with funding a project previously.
The lead applicant must be the site owner, but third parties such as BHESCo can collaborate and partner with an organisation to support an application as well as the project planning, execution and delivery.
How BHESCo can help you through the funding journey
BHESCo are welcoming interest from businesses who are seeking to partner with experts to support submitting an application, and it is important to start now in getting applications ready. We are active in Brighton, Hove Sussex and the South Coast, with projects across the UK.
For more information do not hesitate to contact us for an informal conversation or to book a consultation with our team. Alternatively you can sign up to our newsletter to stay in touch with the latest developments on government funding opportunities and decarbonisation trends.
Steps of the IETF funding process
June/ July – Expected opening of application window
September/ October – Expected closing of application window
July 2025 – Deadline for projects to commence
March 2026 – Deadline for projects to be completed
“The Waste Heat Recovery and Fuel Switch Project (IETF23021) at our Warnham plant will allow us to make a substantial fuel switch from Natural Gas Combustion to Green Electrical Power and Heat Recovery.
“Combined with internal investment, IETF funding is much appreciated and has clearly enabled this project, which lacks financial payback but which represents a significant step towards achieving the ambitious CO2 reduction targets Wienerberger has set itself across its building solutions business.”
Keith Jackson, Head of Thermal Process and Projects, Wienerberger Ltd, Horsham Summer 2022 Competition Winner
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