Government injects nearly £50m funding boost into decarbonising British industry

Nearly £50m in government funding is being made available today to support the sustainable future of British industry.

£49.4m will be awarded to “pioneering” projects across the country, helping drive economic growth through the development of fuel switching technology which will see a wide range of industries, including steel, ceramics, pharmaceuticals and food production, reduce their reliance on fossil fuels and slash energy costs.

Business and energy minister Lord Callanan commented: “We’re investing nearly £50m to back British industry, making sure they’re fit for the future and helping end their dependency on expensive fossil fuels.

“Developing fuel switching technology will make this possible, accelerating the transition to cleaner fuels across our economy, and driving down costs for businesses.”

Industrial fuel switching shifts industrial energy use from high carbon to low carbon fuels, with the aim of decarbonising industry in line with the UK’s target of reaching Net Zero by 2050 while “boosting economic growth, jobs and prosperity”.

Fossil fuels, including coal, gas and oil, made up around 55 per cent of industrial energy consumption in 2019. As set out in the Industrial Decarbonisation Strategy, to decarbonise industry in line with Net Zero, it is expected that industrial emissions need to fall by around two thirds by 2035 and at least 90 per cent by 2050.

Investing in this technology will make it “easier and more cost-effective” for industry to be powered by cleaner fuels like hydrogen and renewable electricity, instead of fossil fuels.

The funding announced today, available through Phase 2 of the £55m Industrial Fuel Switching competition, will support the development of new fuel switching technology in the UK, helping to attract private investment into the country and supporting new green jobs.

Supporting British industry to end their dependency on fossil fuels is a vital part of the government’s plans to boost domestic energy resilience, alongside accelerating renewables and scaling up nuclear power.

Under Phase 2 of the Industrial Fuel Switching competition, fuel switching projects can apply for a share of £49.4m government funding. This follows Phase 1 of the competition, which saw £5.6m awarded in May 2022 to 21 projects for early-stage feasibility studies into their project designs.

By Matthew Neville – Correspondent, Bdaily

• Add me on LinkedIn and Twitter to keep up to date
• And follow Bdaily on Facebook, Twitter and LinkedIn
• Submit press releases to editor@bdaily.co.uk for consideration.

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.