January 29th 2024

Industrial Energy Transformation Fund (IETF) Phase 3 – Project Partner Opportunities

Industrial Energy Transformation Fund (IETF) Phase 3 – Project Partner Opportunities

Today [29th January, 2024] marks the launch of the Industrial Energy Transformation Fund (IETF) Phase 3 Spring competition window. If you operate an industrial site or data centre in England, Wales or Northern Ireland, and are seeking funding support and project partners to deliver on your energy efficiency or decarbonisation goals, read on to find out more about the scheme and some of the ways in which IES can support.

What is the Industrial Energy Technology Fund (IETF)?

The Industrial Energy Transformation Fund (IETF) supports industrial sites with high energy use to transition to a low carbon future. Since launching in 2020, the fund, which is managed by the UK government Department for Energy Security & Net Zero (DESNZ), has already completed two competition phases of a total £500 million fund, pledged through to 2028.

IETF Phase 3 will see £185 million in funding allocated across three competition strands, comprising:

  • Studies - feasibility and engineering studies to enable businesses 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

Phase 3 will be split across two application windows. The Phase 3 spring competition window will open from 29th January – 19th April 2024, with a second application window anticipated to open in June or July 2024.

The fund is open to industrial sites and data centres located in England, Wales and Northern Ireland that meet the IETF eligibility criteria. Further details on the fund scope, eligible cost thresholds and application process can be found in the IETF Phase 3: Spring 2024 guidance document.

How can IES support?

IES can support lead applicants to the IETF as a project partner, supporting all three competition strands (studies, energy efficiency and deep decarbonisation projects). Our team can bring considerable experience in developing robust grant funding applications within tight timeframes, alongside our innovative technology and consultancy services, working alongside industrial sites and their existing supply chain partners.

With our trusted, physics-enabled digital twin technology, we are particularly well positioned to support feasibility studies and post-deployment monitoring and verification (M&V) under the IETF scheme.

Feasibility Studies

To meet the IETF criteria, feasibility studies must investigate the technical, economic, and operational impacts of deploying a technology solution within the applicant’s existing industrial process. A key update introduced within the IETF Phase 3 round is that the scope of feasibility studies has now been extended to include an options analysis, enabling comparative assessment of different interventions prior to making an investment decision. This differs from previous IETF funding rounds, where one specific technology had to be selected for analysis.

Using our Digital Twin technology, we can create a dynamic, virtual replica of your facility, leveraging both data and physics-based simulations to assess and compare the potential impact of different energy efficiency and decarbonisation measures. From this, we can provide detailed recommendations with associated energy, carbon and cost estimates, to provide assurance that any proposed interventions will deliver the desired energy efficiency or decarbonisation impact, and that funds will be well spent. We can also undertake cost appraisals and validation of any existing feasibility study you may have.

Once created, your digital twin further provides an invaluable lifetime asset that can be used to track and guide progress throughout the project deployment phase, and entire lifecycle of your facility. This can help to support future capital projects, as well as ongoing monitoring & verification (M&V) post-deployment of any decarbonisation or energy efficiency upgrades across your site.

Monitoring & Verification (M&V)

Deployment projects funded under IETF Phase 3 will be subject to a monitoring period of up to 5 years following project completion. Monitoring plans need to be agreed with DESNZ as part of the project set up, with applicants clearly identifying how data will be measured and collected.

We can help you develop a robust M&V plan and provide ongoing services to support you post-deployment of any funded interventions, utilising your bespoke digital twin to monitor, track and verify that the expected benefits of the project are realised and adhere with IETF reporting requirements. Our services adhere to the IPMVP (International Performance Measurement & Verification Protocol) using calibrated simulation.

The next round of IETF funding applications is due to open in Summer 2024. If you’d like to learn more about these services and explore potential IETF partnership opportunities with IES in preparation for the next window opening, you can watch our free on-demand webinar, or contact our team to discuss.