Industrial Energy Transformation Fund (IETF) Phase 3: Spring 2024 (closed to applications)
Source: gov.uk (2025-05-27)

Phase 3 of the IETF provides grant funding for feasibility and engineering studies, and for the deployment of industrial energy efficiency and deep decarbonisation projects.

Update: 16 September 2024

The IETF Phase 3: Spring 2024 competition is closed. We are assessing applications.

Visit the IETF Winners page (https://www.gov.uk/government/publications/industrial-energy-transformation-fund-ietf-competition-winners) to see past competition winners.

IETF Phase 3: Spring 2024 competition will allocate grant funding for the following project types:
- studies - feasibility and engineering studies to enable companies to investigate identified energy efficiency and decarbonisation projects prior to making an investment decision
- energy efficiency - deployment of technologies to reduce industrial energy consumption
- decarbonisation - deployment of technologies to achieve industrial emissions savings
The IETF Phase 3 budget is £185 million overall. This will be allocated across 2 competition windows in 2024. We will allocate funding to the highest quality applications that are submitted in the first window, with any remaining budget allocated in the second window.

How to apply

The Spring 2024 competition is now closed.

Eligibility

The Phase 3: Spring 2024 competition was open to businesses of any size with an eligible site in England, Wales or Northern Ireland.

Some IETF funding rules may differ for businesses based in Northern Ireland.

If your site is based in Scotland, please refer to the range of support offered by the Scottish Government. Contact xxx@xxx.xx (mailto:xxx@xxx.xx) for more information.

Changes in IETF Phase 3 from previous phases include:
- controlled environment horticulture activities
- industrial laundries
- textile renting facilities
- coal mining activities are no longer eligible for IETF funding
- companies registered in Scotland but with industrial sites in England, Wales or Northern Ireland are able to apply to the IETF, providing they meet other eligibility requirements
- the minimum grant threshold has been lowered from £100,000 to £75,000 for small and medium enterprises (SMEs) only, and the SME application process will be simplified
- deployment project applicants requesting a grant of £5 million or above must submit a feasibility study or engineering study to support their application
The government response to the recent IETF Phase 3 consultation (https://www.gov.uk/government/consultations/future-of-the-industrial-energy-transformation-fund) provides more detail of changes to the IETF.

Eligible lead applicants

Your business must operate an existing site which falls into one of the following SIC codes:

Notes

(*1): This excludes activities related to the extraction of gas or petroleum. This also excludes coal and lignite mining operations.

(*2): Activities associated with producing energy from waste are not eligible. Further details are provided in the technical eligibility section.

(*3): This excludes laundrettes and other domestic-focused activities.

(*4): Activities supporting crops for human food consumption, where these are grown in indoor production systems with the technology to precisely control multiple environmental parameters such as greenhouses, vertical farms/ plant factories. Wider agricultural or ornamental horticulture activities such as forestry, fishing, flower production, growing of medicinal plants, pastoral farming and arable farming (outside of controlled indoor environments), and low-tech protected environment horticulture (for example polytunnels) are not eligible for support from the IETF.

Please check the SIC code you were allocated at the time of registering at Companies House. If the parent company SIC Code does not reflect the activity carried out at your site, for example where a data centre is owned by a telecoms company, you may still be eligible.

The guidance document provides more detail on the eligibility criteria. You can also contact us about eligibility at xxx@xxx.xx (mailto:xxx@xxx.xx): type ‘Eligibility screening assessment request’ as the subject line of the email. We offer a free eligibility screening service and can provide answers to questions about the application process.

Minimum and maximum thresholds

The funding will be awarded as grants towards the total costs of successful proposals. Your proposal must fall within the stated minimum and maximum award thresholds in this table. Unless otherwise specified, thresholds refer to the minimum and maximum grant that you can apply for.

Get in touch

If you need more information about Phase 3 of the IETF, including questions about the application process or portal, please contact the DESNZ IETF team at xxx@xxx.xx (mailto:xxx@xxx.xx).

Other useful sources
- Case studies of Phase 1 and 2 competition winners (https://www.gov.uk/government/publications/industrial-energy-transformation-fund-ietf-competition-winners)
- listen to our IETF podcast series (https://ktn-uk.org/news/industrial-energy-transformation-fund-podcast-series/) with DESNZ officials, competition winners, and industry experts
- watch our IETF winners videos (https://iuk.ktn-uk.org/news/industrial-energy-transformation-fund-2024-update/) to see projects funded by the IETF in Phases 1 and 2