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IETF deployment of energy efficiency technologies

Project Size:
£100,000 - £14,000,000


This competition aims to support the commercial roll out and permanent installation of technologies at industrial sites. This is the second round of the IETF Phase 1 competition.


The Industrial Energy Technology Fund (IETF) will support the onsite deployment of technologies that improve the energy efficiency of an industrial process or processes.



Your project must:

  • start by 1 January 2023
  • end by 31 December 2024
  • have a minimum total grant funding of £100,000


At the end of your project you must have installed and begun to operate (or be ready to operate) the energy efficiency technology. Your project work must be carried out at a single manufacturing site or data centre in England, Wales or Northern Ireland.


The IETF will only award grant funding to cover the eligible costs of deploying technologies where it can be demonstrated that these costs are additional and necessary to achieving the energy efficiency saving.


You must include a counterfactual case as part of your application. This means you have to refer to a similar, less energy efficient investment that would have been credibly carried out without the grant.


The difference between the costs of both cases of investment identifies the energy efficiency-related cost and constitutes the eligible costs.


If the technology’s only purpose is to achieve energy savings (for example in the case of a heat exchanger project) then it is possible to consider the total investment costs as eligible costs.


Applicant business must fall into the following categories of activity: 

  • manufacturing SIC 10 (000) through to SIC 33 (200)
  • data centres SIC 63 (110)


This competition aims to support the commercial roll out and permanent installation of technologies at industrial sites.

Eligible technologies must have been proven to work through successful operations or be qualified through test and demonstration. This corresponds to Technology Readiness Levels (TRLs) of 8, 9 and above.

Energy saving solutions will differ from site to site, but some examples of eligible technologies include:

  • monitoring and management equipment that improves the efficiency of processes
  • more efficient heat exchange
  • more efficient driers
  • energy recovery from waste heat
  • energy recovery from waste pressure
  • onsite resource efficiency measures to reduce wastage and optimise use of raw materials.
  • more efficient refrigeration or other cooling or heating measures necessary to create and maintain the operational temperature of the industrial process itself (including cooling technologies for data centres).
  • fuel switching is permitted where it is essential to achieving energy efficiency improvements

You must submit data to BEIS throughout the duration and for five years after the end of the project. BEIS will use this to:

  • check that payment milestones have been met
  • evaluate your project to see it has achieved the benefits described in your proposal
  • make sure that your project has contributed to the overall objectives of the Industrial Energy Technology Fund

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