The Department for Energy Security and Net Zero (DESNZ) has recently announced the much-anticipated Phase 3 of the Industrial Energy Transformation Fund (IETF), solidifying the UK Government's commitment to advancing the sustainability agenda. Building upon the success of Phases 1 and 2, Phase 3 is set to provide a substantial grant funding of up to £185 million to UK businesses.
What is the objective of IETF Phase 3?
The IETF Phase 3 is designed to support energy efficiency and deep decarbonisation studies and deployment projects in various industries. The fund will open its first window in January 2024, with a subsequent window launching in the summer of the same year. The grant funding aims to empower businesses in their pursuit of sustainable practices and to contribute significantly to the nation's Net Zero targets.
How does IETF Phase 3 impact ‘controlled environment horticulture’ and the support for glasshouses?
According to the government's detailed scheme features, IETF Phase 3 will consider applications from a broad spectrum of industries. This includes 'controlled environment horticulture,' marking a significant win for the National Farmers' Union (NFU) following its long-standing lobbying efforts. Glasshouses will now be eligible for a higher tier of government support, addressing the energy needs of high-intensity agricultural practices.
However, the NFU has expressed disappointment over the exclusion of the poultry sector, emphasising the energy-intensive nature of poultry production. The NFU President, Minette Batters, has called for urgent clarification on eligibility for horticulture businesses and reiterated the need for a review to include the poultry sector in future energy support measures.
How has the NFU advocated for energy support, and what challenges does the poultry sector currently face in securing essential energy support?
The NFU has been a vocal advocate for energy support, especially for sectors facing soaring production costs. Minette Batters highlighted the critical situation facing many farming businesses, emphasising the threat to the viability of crops with long-term storage. These efforts have resulted in essential energy support being secured for horticulture businesses, but the battle continues for inclusion in the poultry sector.
As the IETF Phase 3 prepares to launch in 2024, businesses across the UK have an opportunity to leverage substantial grant funding for energy efficiency and decarbonisation initiatives. While the inclusion of controlled environment horticulture is a positive step, the NFU's ongoing efforts shed light on the need for comprehensive support across all high-energy farming sectors. As we move toward a sustainable future, collaboration between the government and industries remains important in understanding the complexities of energy transformation and ensuring the resilience of vital sectors such as agriculture.
Want to hear more? Click here to join Innovate UK's online IETF Spring 2024 window briefing event on 6 February.
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