1 December 2022

How the IEFT can help fund your high-energy use business.

The world is shifting toward a more renewable future. The industrial energy transformation is underway with new technologies and innovations that are changing the way we use energy. But the move away from traditional energy sources has left manufacturers in a difficult position. The IETF funding can help support your high-energy business.

In this article, we will cover:

  • What the IETF is.
  • How you will be eligible for the funds?
  • The minimum and the maximum threshold.
  • Use cases.

What is the IETF?

The IETF standing for Industrial Energy Transformation Fund supports high-energy-use businesses to help transition to a low-carbon future. In addition, to cut their bills and emissions through increased decarbonisation and energy efficiency. This is a vital part of the Government’s Net Zero by 2050 goal to tackle climate change. The £70 million competition window for England, Wales, and Northern Ireland opened on Monday, 10 October 2022 and will run until Friday, 13 January 2023.

The IETF Phase 2: Autumn 2022 provides approximately £70 million of grant funding for the following project types:

  • Studies: feasibility and engineering studies. This allows companies to investigate identified decarbonising and energy efficiency projects before making an investment decision.
  • Energy efficiency: the deployment of technologies to reduce industrial energy consumption.
  • Deep decarbonisation: deployment of technologies to achieve saving on industrial emissions.

It will be available in the form of a grant scheme and will fund:

  • 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.
  • Deployment of deep decarbonisation technologies that reduce carbon emissions associated with the industrial process.

Eligibility

The IETF competition is open to businesses of any size registered and operating in England, Wales or Northern Ireland. Please note that some IETF funding rules may differ for businesses based in Northern Ireland.

Industry type

Additionally, your business must operate an existing site that falls into one of the following SIC codes:

Eligible industrial processesSIC Codes
Mining and quarrying05101 through to 0520007100 through to 0899009900
Manufacturing10000 through 33200
Recovery and recycling of material38320
Data Centre63110

Make sure to look through the gov site here and their additional documents, such as the guidance document, to see if you’re eligible. 

Minimum and maximum thresholds

The funding will be awarded as grants towards the total costs of successful proposals. Your proposal must fall within the stated minimum and maximum award thresholds in this table. Unless otherwise specified, thresholds refer to the minimum and maximum grant that you can apply for. 

Funding applied forMinimum threshold per applicationMaximum threshold per project
Energy efficiency deployment projects£100,000£14 million
Deep decarbonisation deployment projects£100,000£30 million
Engineering studies£50,000 (total eligible costs)£14 million
Feasibility studies£30,000 (total eligible costs)£7 million

How to apply for IETF

If you wish to apply, contact FI Group and we will help you with your application.

IETF Use cases

Kimberly-Clark Ltd: Energy Efficient Boilers Project – Barrow Mill

  • energy efficiency deployment competition
  • grant offered – £362,979.00
  • project costs – £2,381,601

Kimberly-Clark shares the same goal of cutting emissions net-zero by 2050. In addition, to reduce current emissions to pre-2005 levels by 2030. Their main UK production hub is the Barrow Mill site in the northwest. In the UK, they employ over 1,000 people and produce Andrex, Kleenex, and Huggies. 

The project will replace the current boiler systems at Barrow Mill alongside the latest state-of-the-art models. Therefore, providing significant efficiency improvements while reducing emissions by over 6,000 tonnes of CO2 per year. Increasing the competitiveness of Barrow Mill as the associated cost savings increase. 

Likewise, this project reflects the company’s internal investment programs – adopting energy-efficient solutions across its manufacturing sites. As a result, helping to secure the future of Barrow Mill while adding the capacity needed to expand production in the future with the potential for significant job increases in the region. The project will ensure clean site growth while fulfilling Kimberly-Clark’s sustainability goals.

Pioneer Foods (UK) Ltd: Realising energy and carbon savings from ESOS opportunities

  • Study competition.
  • Grant offered – £38,970.
  • Project costs – £77,940.
  • Location – Orton Southgate, Peterborough.

Pioneer Foods UK produces healthy fruit snacks and breakfast cereals. They are a leading cereal maker, providing own-label, branded manufacture and packaging services for many of the leading brands and retailers in the UK.

The company recognises the need to avoid waste to minimise the environmental impact. Hence, to act accordingly, all the resources it uses must be managed as effectively and as efficiently as possible. This includes everything from the natural ingredients that go into cereals to the energy needed for mixing and baking them.

In this project, the company proposes to carry out detailed feasibility studies of these transformations and plant operations. Furthermore, the evaluation and analysis will inform of which opportunities can be realised, how much investment is required, identify any risks such as processes, and quantify the benefits in terms of carbon and monetary reductions.

Sofidel UK Ltd: Baglan Visconip / Redry Project

  • energy efficiency deployment competition
  • grant offered – £676,777
  • project costs – £1,503,949
  • location – Briton Ferry, Neath, Wales

The paper industry, such as tissue production, is classed as an energy-intensive industry both in terms of electrical and thermal energy.

Sofidel UK found a solution that would provide it with increased energy savings and reduce CO2 emissions. Several Advantage ViscoNip press installations operate in production machines around the globe. Furthermore, it has become the new standard for wet pressing in conventional Dry Crepe machines.

It provides many benefits including:

  • Improved uniformity.
  • Major energy savings.
  • Increased product flexibility.
  • Quality of product produced.

Get in touch

We at FI Group firmly believe that companies doing the right thing and helping society evolve through innovation should be encouraged and able to access R&D tax credits to offset some of their costs. If you and your company are in the process of innovative R&D projects, contact us here to find out how we can help. We look forward to speaking with you and guiding your business through the R&D process.

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