- The twelve winning projects will bring together local partners and develop plans to reduce manufacturing emissions, with up to ยฃ6 million in government support.
- Up to ยฃ185 million available for the next round of the Industrial Energy Transformation Fund, with even more sectors eligible to apply.
- The funding will help businesses reduce emissions and bills by switching to cleaner energy, helping to meet the UK's net zero targets.
A multi-million pound package will help businesses across the UK reduce their emissions and energy bills.
Minister for Energy Efficiency and Green Finance, Lord Callanan, today (Monday 22 January) announced the 12 winners of the Local Industrial Decarbonisation Plan competition, each of whom will benefit from a share of up to ยฃ6 million to develop plans for a low carbon future.
This funding will give the winning companies and partners the opportunity to work together on plans to reduce their emissions, learn from each other and at the same time have access to technical advisors to prepare for the adoption of measures such as the use of hydrogen or carbon capture. carbon.
In particular, this will target projects outside the UK's main industrial areas, from a Yorkshire pet food manufacturer to a Poole ferry operator. Companies located in dispersed locations far from industrial centers represent 55% of the country's industrial emissions.
It also shared plans to open a new phase of the Industrial Energy Transformation Fund later this month for an additional ยฃ185 million, which will help businesses transform their operations to run on cleaner, safer energy, supporting measures such as replacing inefficient equipment , install electric ovens and switch to hydrogen. The funding ensures businesses are supported in the transition to net zero emissions, in a sustainable and cost-effective way, securing green industrial jobs for the future.
Sectors including manufacturing and recycling โ and, for the first time, controlled environment horticulture, industrial laundries and textile rental facilities โ will be among those eligible to apply for this new support, as part of wider government efforts to meet the UK's net zero targets.
Minister for Energy Efficiency and Green Finance, Lord Callanan, said:
From chemical manufacturing to food and drink, UK industry is at the heart of our economy.
With over ยฃ190 million available for businesses to adopt cleaner, cheaper energy โ and with 12 projects directly benefiting today โ we are providing the support they need to decarbonise.
I look forward to seeing the plans developed by successful clusters and encouraging other businesses to apply to our Industrial Energy Transformation Fund, which has already awarded grants to over 150 projects to help businesses go green.
Today's winners include:
- Shoreham Port Industrial Cluster, an established group of 175 businesses based at the 110-acre site, which will explore ways to reduce emissions and improve local air quality by working with councils.
- Industrial Decarbonization for Northern Ireland (ID-NI), which will develop plans to help local businesses increase their productivity while reducing emissions, taking advantage of the opportunities that a low-carbon future will offer.
- Decarbonizing the Midlands Aerospace Cluster (DMAC), which will work with key players in the region's aerospace supply chain, identifying manufacturing processes that contribute to greenhouse gas emissions and potential solutions.
The Industrial Energy Transformation Fund will also offer support to businesses to switch to more energy-efficient technologies through a new phase opening on Monday 29 January.
Previous winners have included:
- Pioneer Foods in Peterborough, a leading cereal manufacturer, will improve the energy efficiency of its three industrial ovens by replacing burners, minimizing heat loss and installing new motors.
- Cemineral in Lincolnshire: supplier of cement products for homes and infrastructure, will convert its transport and processing systems to electrical energy, helping to reduce its carbon emissions.
- Natural World Products in Dunmurry, a producer of peat-free fertilizers and soil conditioners, to replace diesel-powered equipment with electric equivalents.
These announcements are part of the government's commitment to spend more than ยฃ12 billion on energy efficiency by 2028, helping more homes and businesses benefit from lower bills and cleaner energy.
More quotes
Shoreham Harbor Industrial Cluster LIDP
Tom Willis, chief executive of the Port of Shoreham, said:
We are delighted that Shoreham Port Industry Group has been successful in the local decarbonisation scheme competition and has received a share of the ยฃ6 million awarded by the Department of Energy, Safety and Net Zero in partnership with Innovate UK. As a Port Trust, collaborative relationships with local, educational and business communities continue to be key to our success. This funding will help us create a tangible plan to decarbonize our Cluster, allowing us to act as a catalyst for regional emissions reductions.
NEW- ID (North East Wales)
Ben Burggraaf, CEO of Net Zero Industry Wales, said:
Todayโs funding announcement is another welcome step in the right direction for Welsh industryโs journey towards net zero. It will allow the region to continue to thrive at the UK's industrial forefront, helped by the adoption of low-carbon technologies, whilst opening up a range of skills and employment opportunities.
We look forward to supporting the NEW-ID Plan which will, in turn, support us in our mission to empower businesses to build greener futures. Furthermore, we are confident that learning from other active projects, such as the excellent work being done by SWIC, DDF and Net Zero North West, will allow us to maximize the potential of the Plan.
Decarbonisation of the Midlands Aerospace Cluster
Dr Andrew Mair, CEO of the Midlands Aerospace Alliance, said:
Decarbonisation is essential to the future of the Midlands aerospace industry and we understand the cluster's responsibility in this area, as well as the opportunities it provides. But it is very difficult to advance quickly in the aerospace sector, since the sector-specific materials and processes are strictly controlled to produce aircraft parts that have a long useful life. This presents a key challenge for the cluster that we are excited to address through this cluster decarbonisation project, with the ambitious aim of developing in detail credible and feasible solutions to reduce emissions in the region's aerospace cluster.
They usually LIDP
Anne-Marie Mountifield, Chair of The Solent Cluster, said:
This announcement is great news for our region and for the decarbonisation ambitions of the entire UK. Here in the Solent, the funding will be used to work with industry to ensure access to low-carbon hydrogen production and carbon capture and storage, while measuring the wider economic benefits for the local region . Working together as The Solent Cluster, we have the potential to deliver real change in energy production and consumption which will, in turn, secure existing livelihoods and create new green jobs, support energy resilience and affordability and ensure that the United Kingdom is at the forefront of the economy. the emerging low carbon economy.
ID-NI (Northern Ireland)
Rachel Sankannawar, head of green economy development at Invest Northern Ireland, said:
We welcome today's announcement, which will strengthen our efforts to unlock the economic possibilities of a low-carbon future for Northern Ireland.
The funding provided will allow us to collaborate with key industry partners, our universities and the 11 councils to develop and implement a comprehensive local industrial decarbonisation plan for Northern Ireland. The plan will not only improve our global competitiveness, but will also help us increase our productivity and contribute to reducing our emissions.
Innovate UK
Bryony Livesey, Challenge Director โ Industrial Decarbonisation at Innovate UK, said:
Today's announcement shows how eager companies are to collaborate on plans to decarbonize by forming local industry groups and working together to reduce emissions. This is a crucial step to address dispersed site decarbonisation on the UK's path to net zero by 2050.
