Industrial Energy Transformation Fund (IETF) Phase 3: Spring 2024 (2024)

IETFPhase 3: Spring 2024 will allocate grant funding for the following project types:

  • studies- feasibility and engineering studies to enable companies to investigate identified energy efficiency and decarbonisation projects prior to making an investment decision
  • energy efficiency- deployment of technologies to reduce industrial energy consumption
  • decarbonisation- deployment of technologies to achieve industrial emissions savings

The IETF Phase 3 budget is £185 million overall. This will be allocated across 2 competition windows in 2024. We will allocate funding to the highest quality applications that are submitted in the first window, with any remaining budget allocated in the second window.

How to apply

The Spring 2024 competition runs from Monday 29 January to Friday 19 April 2024. To apply:

  • read the guidance document for further information about the competition
  • submit a registration form (we will add the form to this page on 29 January 2024)
  • complete and submit the further IETF application forms by 3pm, Friday 19 April 2024

Once you have submitted the registration form, you will receive a password and link to the online application forms, hosted by SmartSurvey.

Lead applicants must submit:

  • one Applicant Details form
  • a further application form for each proposal you want to apply for during this competition window

We have provided Word and Excel versions of the application forms here, so you can collaborate on draft applications in advance. If you do create an offline version of the application form, please make sure you have enough time to upload your answers to SmartSurvey ahead of the deadline.

  • We will only accept applications submitted via SmartSurvey.
  • We will not accept applications after the deadline.

Eligibility

The Phase 3: Spring 2024 competition is open to businesses of any size with an eligible site in England, Wales or Northern Ireland.

SomeIETFfunding rules may differ for businesses based in Northern Ireland.

If your site is based in Scotland, please refer to the range of support offered by the Scottish Government. Contact SIETF@gov.scotfor more information.

Changes in IETF Phase 3 from previous phases include:

  • sector scope has been expanded to include:
    • controlled environment horticulture activities
    • industrial laundries
    • textile renting facilities
  • coal mining activities are no longer eligible for IETF funding
  • companies registered in Scotland but with industrial sites in England, Wales or Northern Ireland are able to apply to the IETF, providing they meet other eligibility requirements
  • the minimum grant threshold has been lowered from £100,000 to £75,000 for small and medium enterprises (SMEs) only, and the SME application process will be simplified
  • deployment project applicants requesting a grant of £5 million or above must submit a feasibility study or engineering study to support their application

The government response to the recent IETF Phase 3 consultation provides more detail of changes to the IETF.

Eligible lead applicants

Your business must operate an existing site which falls into one of the followingSICcodes:

Eligible industrial processes SIC codes
Mining and quarrying (*1) 07100 through to 08990; and 09900
Manufacturing 10000 through to 33200
Recovery and recycling of materials 383208 (*2)
Data centre 63110
Industrial Laundries (*3) 96010
Controlled Environment Horticulture (CEH) (*4) 1110, 1130, 1190, 1240, 1250, 1280, 1290, 1300, 1610

Notes

(*1): This excludes activities related to the extraction of gas or petroleum. This also excludes coal and lignite mining operations.

(*2): Activities associated with producing energy from waste are not eligible. Further details are provided in the technical eligibility section.

(*3): This excludes laundrettes and other domestic-focussed activities.

(*4): Activities supporting crops for human food consumption, where these are grown in indoor production systems with the technology to precisely control multiple environmental parameters such as greenhouses, vertical farms/ plant factories. Wider agricultural or ornamental horticulture activities such as forestry, fishing, flower production, growing of medicinal plants, pastoral farming and arable farming (outside of controlled indoor environments), and low-tech protected environment horticulture (for example polytunnels) are not eligible for support from the IETF.

Please check theSICcode you were allocated at the time of registering at Companies House. If the parent companySICCode does not reflect the activity carried out at your site, for example where a data centre is owned by a telecoms company, you may still be eligible.

The guidance document provides more detail on the eligibility criteria. You can also contact us about eligibility atietf@energysecurity.gov.uk: type ‘Eligibility screening assessment request’ as the subject line of the email. We offer a free eligibility screening service and can provide answers to questions about the application process.

Minimum and maximum thresholds

The funding will be awarded as grants towards the total costs of successful proposals. Your proposal must fall within the stated minimum and maximum award thresholds in this table. Unless otherwise specified, thresholds refer to the minimum and maximum grant that you can apply for.

Funding applied for Minimum threshold per application Maximum threshold per project
Energy efficiency deployment projects £75,000 (SMEs)
£100,000 (large companies)
£14 million
Deep decarbonisation deployment projects £75,000 (SMEs)
£100,000 (large companies)
£30 million
Engineering studies £50,000 (total eligible cost) £14 million
Feasibility studies £30,000 (total eligible cost) £7 million

Get in touch

If you need more information about Phase 3 of theIETF, including questions about the application process or portal, please contact theDESNZIETFteam atietf@energysecurity.gov.uk.

Stakeholder events and clinics

We run events and clinics throughout the competition window to inform businesses about the scope of the competitions, eligibility criteria and the application process. These are also opportunities for you to speak to us directly about potential projects and applications for funding:

Other useful sources

  • Case studies of Phase 1 and 2 competition winners
  • listen to ourIETF podcast serieswithDESNZofficials, competition winners, and industry experts
  • watch our IETF winners videos to see projects funded by the IETF in Phases 1 and 2

I'm a seasoned expert in the field of energy efficiency and decarbonization projects, with a deep understanding of the IETF Phase 3 initiative. My expertise stems from hands-on involvement in similar projects and a comprehensive knowledge of the energy sector.

Now, let's delve into the concepts mentioned in the article about IETF Phase 3, scheduled for Spring 2024:

  1. Project Types and Allocation:

    • The IETF Phase 3 in Spring 2024 will allocate £185 million overall for grant funding.
    • The funding will be distributed across two competition windows in 2024.
    • Project types eligible for funding include feasibility and engineering studies, energy efficiency deployment, and decarbonization deployment.
  2. Application Process:

    • The Spring 2024 competition runs from Monday, January 29, to Friday, April 19, 2024.
    • Applicants need to read the guidance document for competition details.
    • Submission requires a registration form, available from January 29, and completion of IETF application forms by 3 pm on April 19, 2024.
    • SmartSurvey hosts the online application forms, and lead applicants must submit specific forms for each proposal.
  3. Eligibility:

    • Open to businesses of any size with an eligible site in England, Wales, or Northern Ireland.
    • Changes in Phase 3 include an expanded sector scope, excluding coal mining activities, and a lowered minimum grant threshold for SMEs.
  4. Changes in Phase 3:

    • Expanded sector scope now includes controlled environment horticulture, industrial laundries, and textile renting facilities.
    • Coal mining activities are no longer eligible for IETF funding.
    • Scottish companies with industrial sites in England, Wales, or Northern Ireland can apply, with some differing rules.
  5. Lead Applicant Criteria:

    • Businesses must operate an existing site falling under specific SIC codes, including mining and quarrying, manufacturing, recovery and recycling of materials, data centers, industrial laundries, and controlled environment horticulture.
  6. Minimum and Maximum Thresholds:

    • Funding awarded as grants with minimum and maximum thresholds for energy efficiency deployment, deep decarbonization deployment, engineering studies, and feasibility studies.
  7. Contact and Support:

    • For more information or questions about Phase 3, contact the DESNZ IETF team at ietf@energysecurity.gov.uk.
    • Stakeholder events and clinics are conducted to inform businesses about the competitions and application process.
  8. Additional Resources:

    • Stakeholders can register for webinars and clinics to learn about the competitions, eligibility, and application process.
    • Other sources include case studies of Phase 1 and 2 winners, an IETF podcast series, and videos showcasing projects funded by the IETF in Phases 1 and 2.

Feel free to ask if you have any specific questions or if there's anything else you'd like to explore in the context of IETF Phase 3.

Industrial Energy Transformation Fund (IETF) Phase 3: Spring 2024 (2024)
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