£166 million cash injection for green technology and 60,000 UK jobs

The government has today (24 May) announced a new £166.5m spending plan designed to accelerate the roll out of green technologies across the UK’s energy-intensive industries.

This latest cash boost for carbon capture and hydrogen projects should help support up to 60,000 jobs, government says.

It will also set out to also help find solutions to decarbonise the UK’s ‘polluting sectors’ including manufacturing, steel, energy and waste.

The multi-million pound investment, awarded to innovators, businesses, academics and heavy industry right across the UK, will set out to accelerate the delivery of the critical game-changing technologies needed to further drive Britain’s climate change ambitions.

Today’s major cash boost – targeted at our most polluting industries – will encourage the rapid development of the technologies we need to reign in our emissions and transition to a green economy

Government says the investment will help put the UK at the ‘forefront’ of the green technologies of the future, while supporting British industries to lowers costs, remain competitive and protect jobs as they improve their energy efficiency and transition to a green economy.

Energy Minister Anne-Marie Trevelyan said: “We are determined to tackle climate change and make it win-win for both our planet and our economy. Today’s major cash boost – targeted at our most polluting industries – will encourage the rapid development of the technologies we need to reign in our emissions and transition to a green economy, one that reduces costs for business, boosts investment and create jobs.

“Just six months ago, the Prime Minister set out a clear 10 Point Plan for creating and supporting up to 250,000 British jobs as we level up and build back greener from the pandemic. Today we’re boosting our armoury for the fight against climate change and backing innovators and businesses to create green jobs right across the United Kingdom.”

10 point plan

The Prime Minister’s 10 Point Plan committed to removing ten megatonnes of carbon dioxide, generating 5GW of hydrogen by 2030, and creating 250,000 green jobs.

Government says today’s announcement takes the UK closer to delivering on these commitments, and includes:

£60 million to support the development of low carbon hydrogen in the UK and to identify and scale-up more efficient solutions for making clean hydrogen from water using electricity. This will take the UK one step closer to using low carbon hydrogen in key industries across the UK – from powering transport such as trains and ships to factories and the heating systems in our homes. This funding will help create around 8,000 hydrogen jobs set out in the 10 Point Plan.

£37.5 million to fund the largest government programme of greenhouse gas removal methods helping cement the UK’s status as a world-leader in this technology. Of this, twenty-four projects across England and Wales will receive up to £250,000 to fund innovative designs that develop new ways of removing greenhouse gases from the atmosphere and store them safely, and a further 5 projects will receive up to £4.5 million each to investigate the viability of adopting greenhouse gas removal methods at scale.

£20 million to support the development of the next generation Carbon Capture, Usage and Storage (CCUS) technologies so they can be deployed at scale by 2030. This could include funding innovative technologies that widen the suitability of CCUS to a larger range of UK industrial uses such as chemicals and cement, reducing the cost of deploying CCUS and helping industrial waste or power sector companies to capture and store harmful emissions from the source, before they are emitted into the atmosphere.

Today we’re boosting our armoury for the fight against climate change and backing innovators and businesses to create green jobs right across the United Kingdom

£20 million to establish a new virtual Industrial Decarbonisation Research and Innovation Centre that will accelerate the decarbonisation of key energy-intensive industries which currently make a significant contribution to UK emissions. Run by Heriot-Watt University, Edinburgh, the Centre will bring together new technologies and address the challenges faced by industrial areas, helping to provide solutions that reduce costs, risks and emissions. This centre will connect and empower the UK industrial decarbonisation community with over 140 partners, including industry and business, government and regulatory agencies and world-leading academics, working together to deliver an impactful innovation hub for industrial decarbonisation.

£16.5 million through the Industrial Energy Transformation Fund to develop new technologies and processes that help energy-intensive sectors cut their emissions, while reducing their energy bills. Projects receiving funding include Tate & Lyle to decarbonise its London sugar refinery and cut emissions by up to 90% and Celsa Manufacturing to install new technologies that improve energy efficiencies in the process to melt scrap metal and produce steel. BAE Systems will also receive funding to install energy efficient technology that could save equivalent annual emissions of around 700 households.

£8 million for projects to develop innovations, such as repurposing textile waste, new clay production techniques for the ceramics industry and concrete manufacturing that support the rapid recovery and sustainability of UK industry. Projects include developing glazes for fast-fire manufacturing of ceramic tiles made entirely from recycled waste, creating a cost-efficient, low carbon concrete manufacturing solution using waste materials and developing the world’s first, high temperature heat pump that can compete commercially with burning fossil fuels.

£4.7 million will establish a new Transforming Foundation Industries Research and Innovation Hub. The hub will be led by Cranfield University and will help industries like metals, glass, cement, paper and glass to work together and address their common challenges while accelerating the development and adoption of new technologies and business models. This could include creating new, smart materials and processes that enable cheaper, lower energy and low carbon products.


£86 million of the total funding package announced today comes from the government’s £1 billion Net Zero Innovation Portfolio, which provides funding for low-carbon technologies and systems, helping the UK end its contribution to climate change.

Projects receiving funding include:

Professor Christopher Evans, UK Centre for Ecology and Hydrology is being backed with almost £4.5 million to manage and restore peatlands to maximise their greenhouse gas removal potential at farmland near Doncaster, and at upland sites in the South Pennines and in Pwllpeiran, West Wales. Peatlands store more carbon than any other ecosystem on land, but as a result of human disturbance they are rapidly losing this carbon to the atmosphere. This project will re-create, and where possible enhance, the environmental conditions that lead to peat formation, and to re-establish a secure long-term carbon store in the landscape.

Celsa Manufacturing, Cardiff, Wales, will receive £3 million to install new technologies to reduce emissions and improve energy efficiencies in the process to melt scrap metal and produce steel. Further, this project could increase domestic scrap processing and production of steel in the UK, reducing the next to import materials from around the world – lowering the country’s carbon footprint.

Tate & Lyle, London, will receive over £500,000 to study how it can decarbonise its sugar refinery and reduce greenhouse gas emission by 90%. The company’s Thames Refinery currently uses boilers fired with natural gas to generate steam and power for its refining operations, which emits carbon dioxide. The aim of the project is to explore new technology that reduces emissions and can also remove carbon from the air that could be deployed at Tate & Lyle’s refinery and also at other sugar refineries around the world.

Over £250,000 for a Direct Air Capture (DAC) technology project led by Storegga, owned subsidiary Pale Blue Dot Energy, with technology partner Carbon Engineering (CE), engineering partner Petrofac Facilities Management, and support from the Universities of Cambridge and Edinburgh. DAC technology has the potential to accelerate UK net zero efforts by capturing carbon dioxide directly from the atmosphere so it can be stored permanently underground. This project will research and develop an alternative to using natural gas to power the calciner, which is a kiln that operates at high temperatures and a key step in the process. This will enable the system to run on clean energy only, eliminating the current requirement to co-capture the carbon dioxide from natural gas which is used in other systems.

Scotland’s Rural College alongside partners University of Strathclyde, Agri-EPI Centre and No Pollution Industrial Systems Ltd, is receiving over £200,000 to reduce the environmental impact of beef production. The project aims to capture the greenhouse gas methane from housed cattle and convert it to carbon dioxide and energy using a novel system. At the same time, manure and waste feed will be converted to a fertiliser and biogas that will be used to power farm sheds and produce low-carbon fruits and vegetables. As a result, farmers could improve their profitability, increase their selection of goods to sell and utilise natural resources through more sustainable low-carbon farming that reduces their carbon-footprint.

BAE Systems, Glascoed, Wales, has been awarded over £82,000 to incorporate energy efficient technology that replaces a steam heating system at the company’s Glascoed site. The project aims to reduce energy consumption and the company’s carbon footprint by up to 25%, saving the equivalent annual emissions of approximately 700 households.

William Cook Holdings Limited, Sheffield, will benefit from over £38,000 to improve energy efficiency and reduce its environmental footprint by recovering waste heat from its furnaces to produce electricity, among other uses.

Net Zero Expert Group

On Wednesday, the newly formed Net Zero Expert Group will meet for the first time. Chaired by the Business & Energy Secretary Kwasi Kwarteng, this group was a key commitment set out in the PM’s Ten Point Plan, and brings together an expert group as part of Task Force Net Zero to drive forward net zero targets, providing advice on tackling climate change and helping to develop new polices to support the development of the government’s Net Zero Strategy.

This will be published ahead of the UN climate summit COP26 taking place in Glasgow this November.

Challenge Director for UK Research & Innovation’s (UKRI) Industrial Decarbonisation challenge Dr Bryony Livesey said: “The introduction of the Industrial Decarbonisation Research and Innovation Centre concept shows the commitment to not only fund largescale decarbonisation efforts, but to make sure we continually learn from and adapt to their early results and challenges.

“By enabling the Centre to build evidence on a range of areas from direct costs and emissions to skilled jobs and wider net zero policy, we believe we are creating a more adaptive and responsible path for the UK’s big industry to take to remain at the forefront of a global low carbon culture.”

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