Guidance

Funding for low carbon industry

Government funding to reduce the carbon emissions from UK industry

Innovation to reduce the carbon emissions from UK industry and driving down the cost of carbon capture, use, and storage

Across Government, Innovate UK, Research Councils, and BEIS expect to invest around £162 million in industrial research and innovation, including Carbon Capture, Use and Storage (CCUS).

As part of this commitment, within the BEIS 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.

Carbon Capture and Utilisation (CCU) Demonstration

As part of the Government’s Clean Growth Strategy BEIS will be allocating up to £20 million to design and construct carbon capture and utilisation (CCU) demonstration projects. This programme will encourage industrial sites to capture carbon dioxide which could then be used in industrial applications. This would help to enable a pathway for learning and development of capture technologies at an intermediate scale, reducing the costs and risks. The programme will be run in three phases:

Phase 1 will be an initial scoping study for an engineering supplier to work on BEIS’ behalf with potential host sites, carbon dioxide users and technology suppliers to produce site-specific cost estimates for deploying CCU at UK industrial sites. The Phase 1 ITT is now open for interested suppliers.

A version of the invitation to tender is available for stakeholders interested in the CCU demonstration programme.

Invitation to tender for phase 1 CCU scoping study

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Two reports on carbon dioxide utilisation that were prepared by Ecofys and the Royal Society are also available.

Ecofys report on carbon dioxide utilisation

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Royal Society report on carbon dioxide utilisation

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Phase 2 will fund projects to conduct design studies for constructing CCU equipment at UK host sites.

Phase 3 will fund projects to construct and demonstrate CCU.

Industrial Fuel Switching to Low Carbon Alternatives

The Clean Growth Strategy highlights the need for industry to begin to switch from fossil fuel use to low carbon fuels such as biomass, hydrogen and clean electricity. Beyond 2030, the switch to low carbon fuels for industry will need to substantially increase in scale. Government has launched the first phase of an innovation competition which has been allocated up to £20 million which focuses on market engagement and potential scope for fuel switching in industry. The competition aims to stimulate early investment in fuel switching processes and technologies, so that a range of technologies are available by 2030 and beyond.

The ITT to deliver the first phase has been published, bids are due in by 11am on the 12th January 2018.

Industrial Energy Efficiency Accelerator

To support innovation in energy efficient technologies, the government will be investing up to £9.2 million for an Industrial Energy Efficiency Accelerator, to be delivered over the next four years.

This 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. After a competitive process, the Carbon Trust has been awarded the contract to help BEIS deliver this programme. The Carbon Trust have been holding events to engage with both industry and their suppliers, and the competition is now open to applications.

Further information.

Contact

Please direct any other questions to industry.innovation@beis.gov.uk.

Published 25 January 2017
Last updated 7 December 2017 + show all updates
  1. Phase 1 ITT for deploying CCU at UK industrial sites.
  2. Procurement notice for fuel switching notice competition.
  3. Updates from the Clean Growth Strategy.
  4. Details of competition winner published
  5. Invitation to tender now open for the Industrial Energy Efficiency Accelerator.
  6. First published.