UK Government Allocates $63 Million to Help Businesses Cut Carbon Emissions

The UK Government has invested $63.2 million (£51.9 million) into 25 businesses through the Industrial Energy Transformation Fund (IETF). The funding is set to contribute to the country's goal of reaching net-zero emissions by 2050. The funding initiative will spur economic development, among other roles, while focusing on cutting carbon emissions. The Department for Energy Security and Net Zero unveiled the funding last week.

Funding Across Key Industries

The IETF funding will support a variety of industries, including food manufacturing, cement production, and glass processing. Key recipients include Essar Oil UK, Nestlé’s Staffordshire coffee site, Heinz’s Wigan baked bean factory, and Hanson Cement in North Wales. These businesses will use the funding to implement projects that cut carbon emissions and improve energy efficiency.

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Essar Oil UK's Decarbonization Efforts

Essar Oil UK will invest part of the raised funds, namely $2.2 million, to advance decarbonization at the Stanlow Refinery. The oil refineries plan to install a Carbon Dioxide Capture Unit (CDCU). The CDCU will capture 95% of CO2 emissions from the fluid catalytic cracking unit.

This project is expected to reduce emissions by 0.86 million tons per year. Essar Oil UK will retrofit over 30 heaters to burn low-carbon hydrogen, further reducing emissions by 0.56 million tons annually.

Other Projects

Several other businesses are also benefiting from the IETF funding. Ultra Tough has received $189,000 to study how furnace waste heat can be converted into electricity, reducing gas usage and emissions. Novelis in Warrington, which has been awarded nearly $17 million, will expand its recycling capacity. This expansion will help reduce 350,000 tons of carbon emissions.

Hanson Cement will receive $6.8 million to implement a carbon capture and storage (CCS) project in North Wales. Hanson Cement is a part of Heidelberg Materials. The new facility will help the company seize 800,000 tons of CO2 annually. Additionally, the development will create hundreds of construction jobs for local people.

Emissions Reduction Technologies

In total, these projects are an investment of $187.8 million in emissions-reduction technologies. Businesses are paying two thirds of the costs. The UK Government has also finalized contracts for the country's first carbon capture project in Teesside. This project is part of the government's commitment to reducing the nation's carbon footprint and revitalizing industrial regions.

The allocation of the funds represents the UK's dedication to reducing carbon emissions and meeting the 2050 net zero target.