Government fund to back projects that help reduce business energy costs and consumption

The UK government has launched a funding program to support projects aimed at improving industrial processes, reducing energy costs for businesses, and promoting a cleaner energy system. The funding, totaling nearly £46 million, is intended to advance the country’s transition to a more sustainable energy landscape.

This initiative is driven by three competitive categories, each of which focuses on different aspects of energy efficiency: the Red Diesel Replacement Competition, the Industrial Hydrogen Accelerator Competition, and the Industrial Energy Transformation Fund.

The goal is to help businesses incorporate cleaner and domestically sourced energy solutions into their operations. It aims to encourage innovation and sustainability in various sectors, including construction, manufacturing, and energy.

One of the beneficiaries of the fund is Tweed Valley Maltings in Northumberland which has been the headquarters of Simpsons Malt, a fifth-generation family business, since 1963. This funding will help them establish a low carbon energy centre. With the help of a wind powered electric boiler, the new facility at Simpsons Malt will cut bills, reduce emissions and secure their energy independence.

This is one of 26 businesses who are receiving a share of the funding, with others including Danfoss, which is testing a pump and motor system in an excavator at an Edinburgh quarry, and Digital Realty, which will be upgrading coolers in its data halls, switching to more efficient chillers to help cut their energy consumption.

Minister for Energy Consumers and Affordability Amanda Solloway said:

“As we continue towards our goal of reaching net zero by 2050, we want to ensure businesses have all the support they need to power our transition to a cleaner, cheaper energy system.

“Our funding will support ground-breaking projects in malting, construction and manufacturing so businesses can incorporate green energy into their day-to-day operations.”