Reed Smith Client Alerts

On 20 July 2020, the Department for Business, Energy and Industrial Strategy (BEIS), began accepting applications for grants under Phase I of the £315 million Industrial Energy Transformation Fund (IETF). Those interested in applying for funds in this phase have until 11am on 28 October 2020 to submit their application via the websites linked to below.

Autoren: Richard A. Ceeney Nicholas Rock Gautam Lamba

IETF overview

In the 2018 Autumn Budget, the UK government announced £315 million in funding until 2024 to fund a shift to ‘greener’ operations in the UK’s manufacturing and data centre industries. £289 million of the total sum is earmarked for England, Wales and Northern Ireland and is managed by BEIS, while the Scottish government has control of the remaining £26 million for investment in Scotland.

In Phase I, £30 million of the total amount under the control of BEIS will be available for two types of projects:

  • deployment, i.e., projects that implement technology to reduce fuel bills and carbon emissions; and
  • studies, meaning feasibility and experimental (i.e., engineering) studies into energy efficiency and decarbonisation for future deployment projects.

In each case, the grants are accessible only for those businesses:

  • registered as under SIC codes 10-33 (manufacturing) or as data centres; and
  • eligible for state aid under applicable EU rules on exempt aid.

In addition to the (non-exhaustive) summary requirements noted below, successful applicants will be subject to monitoring and verification obligations that could last up to five years after the project has finished. This is to enable BEIS to analyse the effectiveness of the IETF against its objectives; it is not intended to be an audit.