New £500m decarbonisation fund open to manufacturers

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£500m worth of grants are available for decarbonisation projects. Image: Getty, Peter Dazeley (Getty Images)

Food manufacturers could be missing out on £500m worth of grants to support development of net zero and carbon reduction technologies.

Last month saw the Department for Energy Security and Net Zero (DESNZ) open applications for Phase 3 of its Industrial Energy Transformation Fund (IETF).

Open to businesses of any size with an eligible site in England, Wale or Northern Ireland, companies have until Friday 19 April to apply for funding.

Funding will be made available to projects exploring three key areas: feasibility and engineering studies to investigate the viability of energy efficiency and decarbonisation projects; programmes to deploy technologies with the aim of reducing industrial energy consumption; and investment in technologies to achieve widespread emissions savings.

Prioritising manufacturing

DESNZ will be prioritising entries from the manufacturing sector, with recipients to be announced later in the year. Remaining funding will be allocated during the autumn window.

Jodie Eaton, chief executive of Shell Energy UK, said: “It’s positive to see this support for the hugely important areas of decarbonisation and energy efficiency. The IETF, alongside other funding avenues, will be another step in accelerating national progress towards net-zero.

“This is a significant opportunity for eligible major energy users to secure funding to support both their energy efficiency and decarbonisation efforts. With funding thresholds of up to £30m per project, it could help to further accelerate progress towards achieving net-zero ambitions.”

Potential contribution

Once submitted, applications will undergo a comprehensive assessment led by DESNZ. Alongside overall project feasibility, grants will be awarded based on the potential contribution towards accelerating energy efficiencies, achieving long-term emissions reductions and delivering long-term business impact.

Detailed guidance, as well as business eligibility, can be found on the Government’s website. Application forms can be found here.

Meanwhile, Growing Kent & Medway is offering a share of £600,000 to prospective innovators focused on finding sustainable improvements within the fresh produce, food and drink supply chain.

The Business Sustainability Challenge, which is being run for a second year by research, innovation and enterprise cluster Growing Kent & Medway, will award funding of up to £50,000 for innovative ideas, processes, or technologies that support sustainable production, products and packaging solutions.