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Local Industrial Decarbonisation Plans and Industrial Energy Transformation Fund

Volume 744: debated on Monday 22 January 2024

My noble Friend the Parliamentary Under-Secretary of State (Lord Callanan) has today made the following statement:

I am pleased to inform the House that two announcements will be made today regarding Government support for industrial decarbonisation: winners of the local industrial plans (LIDP) competition, and publication of guidance documents for phase 3 of the industrial energy transformation fund.

Dispersed industrial sites account for approximately half of the UK’s industrial emissions. In the 2021 net zero strategy, the Government committed to explore opportunities for faster decarbonisation of dispersed sites in the 2020s, including funding for mini-cluster industrial decarbonisation plans to develop shared infrastructure and integrated decarbonisation solutions in local areas.

To fulfil this commitment, the Government, in partnership with Innovate UK (IUK), have today announced the 12 winners of the local industrial decarbonisation plans (LIDP) competition, worth up to £6 million. This supports collaborative working between groups of industrial manufacturers and other businesses to start their journey towards a low-carbon future.

The competition provides grant funding to support place-based industrial decarbonisation plans, driving benefits from collaborative partnerships across industries and sectors as they develop plans for the introduction of low-emission technologies. The programme of work will last until March 2025.

The projects which have been offered grants—subject to contract—are:

Bradford Manufacturing Futures—Up to £726,729

DECODE Corby—Up to £453,590

Decarbonising Dalton Industrial Estate—Up to £129,063

Decarbonising the Midlands Aerospace Cluster (DMAC)—Up to £444,739

Decarbonising the Port of Poole Maritime Industrial Cluster—Up to £184,487

Industrial Decarbonisation for Northern Ireland—Up to £595,905

Making A Better Tomorrow: Decarbonisation of Stakehill Industrial Estate in Atom Valley—Up to £612,376

NEW-ID (North East Wales Industrial Decarbonisation)—Up to £711,784

Shoreham Port Industrial Cluster: Local Industrial Decarbonisation Plan—Up to £226,803

The Solent Cluster: Local Industrial Decarbonisation Plan—Up to £757,601

West of England Industrial Cluster Local Industrial Decarbon-isation Plan—Up to £607,571

ZCOP I-RMAP: Zero Carbon Oxford Partnership Industrial Roadmap and Action Plan—Up to £265,032.

Companies across England, Wales and Northern Ireland can also benefit from the support offered through the industrial energy transformation fund (IETF). The IETF provides grant funding towards the costs of studies and deployment projects that reduce the energy consumption and emissions produced by industrial sites, including sites in dispersed locations. Phase 3 of the IETF will allocate up to £185 million in 2024. Today we are publishing the guidance documents ahead of the spring 2024 application window which will open on 29 January and close on 19 April.