The government is on the hunt for effective ways to reduce power bills and cut emissions in industry, with the aim of saving companies up to £1 billion a year in energy bills by 2030.
The new Industrial Energy Transformation Fund (IETF) will help businesses with high power use, such as energy-intensive industries like cement, ceramics, chemicals, food and drink, glass, metals, and pulp and paper production.
These industries currently emit around two thirds of the UK’s total industrial carbon emissions, and the government hopes the fund will help them to cut out two million tonnes of carbon emissions between 2028 and 2032 - the equivalent of taking nearly 200,000 cars off the road every year.
The government highlighted a number of examples of action already taking place, including:
• Food giant Nestle is using high temperature heat pumps for heating and cooling during its chocolate manufacturing process - cutting energy costs by nearly £150,000 every year
• Manufacturer Ibstock Bricks is using ‘brick-building robots’ to help make repetitive manufacturing processes more efficient, halving emissions for every brick produced
• Manufacturer Saint-Gobain is saving £165,000 a year in energy costs by becoming more responsive to demand, powering down its factories at peak energy periods
• Heat reduction programmes in the ceramics sector have reduced the heat used to glaze tableware by 5 per cent, helping cut their carbon footprint by 25 per cent.
The first phase of funding is set to launched next spring, with the government currently seeking views on how the fund should work.
The move is part of the government’s wider plan to drastically improve the energy efficiency of commercial buildings - including a recent commitment to set a minimum energy efficiency standard for rented commercial buildings of EPC band B by 2030.
The government has also launched a Transforming Foundation Industries Competition, which offers businesses a share of £5 million for developing resource and energy efficiency solutions for heavy industries.
Business, energy and clean growth minister Kwasi Kwarteng said: “Ensuring energy-intensive businesses are equipped with the latest low emission technologies will not only helps our transition to net zero [emissions], but will also ensure these companies are more agile and competitive going forward - creating new skilled, well-paid jobs.”