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Industrial energy efficiency and decarbonisation in the UK

Posted on 07/08/2018

A breakdown of sustainable energy funding opportunities associated with BEIS' £100m Industrial Strategy programme.

The Industrial Strategy sets out the Government’s plan to help businesses create better, higher-paying jobs with investment in the skills, industries and infrastructure of the future. At the heart of this strategy is the Government’s aim to support the manufacturing industries to improve the energy efficiency of their industrial processes, and in doing so, reduce their carbon emissions.

In 2017 the Department for Business, Energy and Industrial Strategy (BEIS) received £100m from the Industrial Strategy to develop and demonstrate new innovations which would enable industry to maintain production levels whilst reducing their energy demand. Innovation can help to identify, develop and de-risk industrial energy efficiency technologies necessary to meet carbon targets including waste heat recovery, use of low carbon fuels and energy efficiency equipment associated with the industrial process itself.

KTN has been supporting BEIS to promote the funding opportunities associated with the £100m Industrial programme, and KTN’s Sustainable Energy Knowledge Transfer Manager Jenni McDonnell has produced a breakdown of how the majority of the money will be allocated.

 

Industrial Energy Efficiency Accelerator £9.2m – open

The IEEA funds the demonstration of energy efficiency innovations applied to the industrial manufacturing process.  The funding programme is technology neutral, for example heat recovery from the industrial process, new materials used in the industrial process, new process equipment, new low carbon fuels to power the industrial process (heat and power) are in scope.  This programme is managed by the Carbon Trust on behalf of BEIS.  They assess applications every two months (next assessment date: 31st August).

The programme closes at the end of December 2018.  The BEIS lead is Phil Cohen and you can find out more about the programme here.

 

Industrial Carbon Capture and Utilisation Demonstration £20m – opens autumn

The ICCU funds the demonstration of low cost, capture of carbon emissions from an industrial process.  The emphasis is on reducing the cost of carbon capture technologies but also includes the use of the captured CO2.  The competition is a three-phase process – phase 1, market engagement has been completed by Wood group.  Phase 2 will open in the autumn and will fund feasibility studies to assess the viability of an ICCU demonstration. Phase 3 will open next year and will fund the building of the demonstrator. The BEIS lead is Solmaz Parsa and more information about the competition can be found here.

 

Industrial Carbon Capture Utilisation and Storage Innovation £15m – open

The innovation programme funds the development of new technologies for carbon capture and storage (CCS) or carbon capture and utilisation (CCU).  The programme is aimed at innovations at Technology Readiness Level (TRL) 4-6 for Industrial research or Experimental development.  The application process closes on 11th November 2018.  The BEIS lead is Nick Bevan and more information about the competition can be found here.

 

Industrial Fuel Switching Demonstration £20m – opens autumn

The IFS funds the development and demonstration of low carbon fuels to provide energy for the industrial process (hydrogen, biomass, renewable electricity etc).  The competition is a three-phase process – phase 1 market engagement is being conducted by Jacobs to assess the current alternatives to fossil fuels and is due to complete in August.  Phase 2 will open in the autumn and will fund feasibility studies to assess the viability of an IFS demonstration.  Phase 3 will open next year and will fund the building of the demonstrator.  The BEIS lead is Phil Cohen and more information about the competition can be found here.

 

Hydrogen Supply Demonstration £20m – opens autumn

The Hydrogen Supply Programme funds the design and demonstration of low cost, bulk production of hydrogen for power generation, transport and buildings (heating).  This will be a two-phase process.  Phase 1 will open in the autumn and will fund feasibility studies to assess the viability of the Hydrogen supply demonstration.  Phase 2 will open next year and will fund the building of the demonstrator.  The BEIS lead is Phil Cohen and more information about the competition can be found here.

In addition to the £100m funding from the Industrial Strategy BEIS has also committed a further £18m through their Heat Programme to support the manufacturing industries to recover and use their waste heat.

 

Industrial Heat Recovery £18m – opens September

The IHRS funds the design and demonstration of heat recovery from the industrial process for reuse on site as heat or power or donated to a nearby heat network.  The programme is technology neutral but is open to TRL 9 or above heat recovery technologies.  This will be a two-phase process.  Phase 1 will open in September and will fund feasibility studies or preliminary engineering design projects to assess the viability of the heat recovery demonstration.  Phase 2 will open next year and will fund the building of the demonstrator in England or Wales.  The BEIS lead is Theo Turner and more information about the competition can be found here.

 

If you have any questions about the funding opportunities or would like help to find suitable partners for your projects, please contact Jenni McDonnell (jenni.mcdonnell@ktn-uk.org).