Funding for low carbon industry

Details of funding for low carbon industry including carbon capture, usage and storage programmes.

Innovate UK, the Research Councils and BEIS expect to invest around £162 million in industrial research and innovation, including carbon capture, usage and storage (CCUS).

As part of this commitment, within the Energy Innovation Programme, BEIS expects to invest around £100 million in low carbon industrial innovation to reduce the risks and costs of accelerating the roll out of low carbon technologies which will enable UK industry to remain competitive.

The government’s Clean Growth Strategy has committed funding for several of the following programmes.

Carbon Capture and Utilisation Demonstration (CCUD)

BEIS has allocated up to £20 million to design and construct carbon capture and utilisation (CCU) demonstration projects. This programme is designed to encourage industrial sites to capture carbon dioxide which could then be used in industrial applications.

Call for CCUS Innovation

In July 2018 BEIS launched a £15 million Call for CCUS Innovation to offer grant funding for innovation projects that lead to:

  • a significant reduction in the cost of capturing and sequestering carbon dioxide; and / or
  • a quicker, more widespread deployment of CCUS in the UK and internationally.

Hydrogen Supply Competition

The £20 million Hydrogen Supply programme aims to accelerate the development of low carbon bulk hydrogen supply solutions in the above sectors.

Industrial Energy Efficiency Accelerator (IEEA)

The government is investing up to £9.2 million for an Industrial Energy Efficiency Accelerator. The Accelerator will seek industry-specific solutions which are close to commercialisation by leveraging private sector investment and strengthening UK supply chains to reduce energy costs for UK industry.

Industrial fuel switching to low carbon alternatives

The 3 phase Industrial Fuel Switching competition allocates funding to stimulate early investment in fuel switching processes and technologies, so that a range of technologies are available by 2030 and beyond.

Accelerating CCS Technologies (ACT)

In 2016 the UK joined a consortium of 9 European countries to co-fund collaborative innovation projects into carbon capture, usage and storage (CCUS). ACT is a European Research Area Network (ERA-NET) Cofund, a tool established by the European Commission under the Horizon 2020 programme.

Published 25 January 2017