BEIS is asking how it should structure a new funding stream – the Industrial Energy Transformation Fund – intended to help industry lower its energy and carbon costs.
The new fund, announced in the autumn 2018 budget, has £315 million to spend over the five years to 2024, and aims to help companies cut their energy bills and carbon emissions through investing in energy efficiency and low-carbon technologies.
The fund will support projects that are ready for deployment, but BEIS says some decarbonisation projects in particular may need support at an early stage, so it expects the fund too support feasibility and capacity-building. There may be different criteria to assess different types of projects.
It proposes a competitive allocation process, and expects to part-fund relatively short-term projects that have industry match-funding. The aim is to complement the Industrial Clusters Mission, which will have a longer-term and place-based focus.
The consultation sets out various options that could be supported, such as hydrogen or carbon capture, and some specific technologies, such as electric arc furnaces, that need further development. It also refers to mature technologies, such as heat pumps, biomass steam boilers or combined heat and power, that still face barriers to uptake.
BEIS is seeking industry input on how to structure the fund and what it should cover.
The consultation closes on 31 May. Full details here