top of page

UK Government Awards £46 Million to Diverse Industrial Decarbonization Endeavors

In a groundbreaking move to usher in an era of cleaner industry, more than 25 diverse projects have emerged victorious recipients of a substantial £46 million in government funding. These initiatives, strategically designed to spearhead the reduction of emissions from the heavyweight industrial and manufacturing sectors within the United Kingdom, have garnered the enthusiastic endorsement of the Department for Energy Security and Net Zero (DESNZ), which made this exhilarating announcement earlier today.

Among the triumphant contenders stands the Tweed Valley Maltings, nestled in the picturesque landscapes of Northumberland. This ambitious enterprise has secured a commendable £3.5 million, embarking on establishing a cutting-edge low-carbon energy center. At its core lies a wind-powered electric boiler, poised not only to slash operational costs but also to curtail emissions at the site significantly.

In a parallel narrative, we encounter the esteemed Danish engineering firm Danfoss, which has emerged as a recipient of a substantial government allocation of nearly £5 million. Their mission? To rigorously test a state-of-the-art pump and motor system destined for deployment within an Edinburgh quarry, promising a profound revolution in energy efficiency. Meanwhile, a forward-thinking innovator, Digital Reality anticipates utilizing its generous £735,000 grant to usher in a new era of energy-efficient coolers.

However, the pinnacle of funding generosity is reserved for Catagen, which basks in the glory of a staggering £6.3 million allocation. Their noble quest? To spearhead the production of environmentally friendly green hydrogen and e-diesel, tailored to cater to the needs of industrial vehicles in the picturesque landscapes of Northern Ireland.

These substantial funds have found their way into the coffers of 26 distinct projects, each under the banner of three separate government initiatives. These encompass the fiercely competitive red diesel replacement competition, the forward-looking industrial hydrogen accelerator commission, and the visionary industrial energy transformation fund.

Amanda Solloway, Minister for Energy Consumers and Affordability, said the projects took the UK closer to meeting its climate targets while helping businesses save money on their energy bills and safeguard domestic jobs.

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

As industry currently bears the brunt of approximately 16 percent of the United Kingdom's emissions burden, the government envisions these decarbonization grants as pivotal instruments in fulfilling its legally binding commitment to reduce emissions by a resounding 78 percent, based on 1990 levels by the year 2035.

Dr Andrew Woods, CEO and co-founder at Catagen said the funding would help cut emissions from so-called hard-to-abate sectors. "The pathway to decarbonise the off-road mobile machinery is difficult; these vehicles tend to be larger, built for extreme conditions, have long duty cycles and high-power demand," he said. "There is no one-size-fits-all solution, so we are delighted to be making this bold step with Terex and Wrightbus to develop an end-to-end decarbonised solution."

This momentous announcement follows hot on the heels of another significant development. Just a day prior, the government-backed agency Innovate UK made waves by allocating a substantial £6.6 million across 16 pioneering research projects. These initiatives are laser-focused on bolstering the United Kingdom's critical minerals supply chain, which holds immense potential to fortify supplies of rare earth elements. These elements, pivotal in creating magnets found in everyday gadgets like laptops and smartphones, are indispensable in clean technologies, including wind farms and electric vehicles.

Mike Biddle, executive director for Net Zero at Innovate UK, said: "By recycling and recovering valuable rare-earth magnets, we are reducing the environmental impact of extraction, saving energy, and creating a resilient supply chain in a growing global market. These materials are fundamental to building a net zero economy, so we need a sustainable way to access these critical materials and for innovation to thrive in harmony with responsible resource management. I'm pleased for our competition winners, who have demonstrated their commitment to this by making this happen, and I wish them well on their innovation projects."


bottom of page