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New imminent application window for Industrial Energy Transformation Fund

18th June 2024

Energy efficiency has never been more important for hard-pressed companies with thin margins and high energy consumption – but there is support available.

The Industrial Energy Transformation Fund (IETF) is a government-funded initiative designed to help UK businesses with high energy use cut their energy use by investing in more efficient technology and to reduce carbon emissions by investing in energy efficiency and low-carbon technologies. It is managed by the Department for Energy Security & Net Zero (DESNZ).

Phase 3, Stage 1 of the IETF was launched in January 2024 and closed in April 2024, this is expected to be followed by a final Phase 3 (Stage 2) competition window in Summer 2024, enabling the industry to apply in line with internal investment and replacement cycles. Phase 3 will provide up to £185 million of funding and will run until 2028.

The IETF can help businesses in the UK to save money on their energy bills in a number of ways:

· Funding feasibility and engineering studies, helping businesses to identify and develop energy-saving projects.

· Providing grants for the deployment of energy-efficient technologies, helping businesses to reduce their energy consumption and save money on their bills.

· Funding deep decarbonisation projects, helping businesses to reduce their greenhouse gas emissions and comply with environmental regulations.

The amount of money that businesses can get from IETF depends on the type of project, the size of the business, and the geographical location. The overall trend is that smaller businesses are more likely to receive funding than larger businesses. There are minimum grant thresholds for deployment projects, but projects may be aggregated to meet this minimum threshold.

To be eligible for funding from the IETF, businesses must:

· Businesses should only apply if the project or study cannot go ahead without government support.

· Be a registered business in England, Wales, Northern Ireland or Scotland with the eligible sites being in either England, Wales or Northern Ireland (Scottish sites will require a separate process)

· Have a plan for investing in energy efficiency and low-carbon technologies.

· Be able to demonstrate that their project will deliver energy savings or emissions reductions.

The eligible SIC codes for IETF are as follows:

· Mining and quarrying: 07100 through to 08990, and 09900

· Manufacturing: 10000 through to 33200

· Recovery and recycling of materials: 38320

· Data centre: 63110

· Controlled Environment Horticulture: 1110, 1130, 1190, 1240, 1250, 1280, 1290, 1300, 1610

· Industrial Laundry & Renting Facilities: 96010

What is the application process?

Applications for funding from the IETF are made online through the UK website. The application process is competitive, and businesses are encouraged to work with an energy consultant to develop a strong application.

The IETF team needs to carefully review applications and score them against the eligibility criteria.

If the application is successful, they will be invited to submit a full project proposal. This proposal will be evaluated by the IETF team and a panel of experts. If the project proposal is successful, they will be invited to enter a contract with the IETF. The contract will set out the terms and conditions of the funding.

How can Inenco help?

Given the likely short application window, we would encourage you to talk to us at an early opportunity. This will enable us to collectively pre-plan and collect the necessary data to maximise the likelihood of compiling a successful bid. We can help you collect data to support your application, develop and complete the necessary documentation, meet with you to review the application and confirm approval and readiness for submission. If the application is successful, we can provide a Monitoring and Verification Plan and then supply data in line with that plan for five years, as requested by the scheme.

To find out how the experts at Inenco can help you develop and implement your net zero transition plan, please contact us at 08451 46 36 26.

Sustainable Energy First, has acquired Inenco.


The acquisition brings together two businesses with one common objective;
to make truly renewable
energy more accessible to businesses of all sizes helping them achieve their Net Zero targets.

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