Phase 2 of the UK Government’s Industrial Energy Transformation Fund, designed to help energy intensive industries and businesses with high energy use to cut their energy bills and carbon emissions, has opened to applications.

£60 million in funding is available to support the commercial roll out and permanent installation of energy efficient and low carbon technologies at industrial sites, along with feasibility and engineering studies. All projects must relate to improvements to an existing industrial process at a manufacturing site or data centre in England, Wales or Northern Ireland. 

Technologies within Scope

There are two main elements:

Energy efficiency proposals which reduce the energy consumed by industrial processes at site level, attributing benefits to both the bill savings (we anticipate most efficiency projects will have a positive payback) and any associated emissions savings. 

Decarbonisation proposals which reduce the emissions produced by industrial processes at site level. While in some cases there may be an associated energy saving this is not the key driver for the proposal and in many cases energy bills may in fact increase. 

Energy savings must be measured and take place at site level where there is an existing, identified operational industrial process.

The fund is managed by the Department for Business, Energy & Industrial Strategy – Industrial Energy Transformation Fund


BEIS is always happy for companies talk to them about the projects they would like to do. If ineligible under this programme, they might be able to find an alternative source of funding in terms of utilisation.

The deadline for applications is the 6th December 2021.