The government has announced new funding to enable UK businesses to shift to cleaner energy alternatives and reduce their carbon footprint.
Businesses across the United Kingdom have received a significant financial boost from the government, with over £80 million in funding allocated to support their transition away from costly fossil fuels towards cleaner alternatives.
Announced by Energy Minister Graham Stuart at the UK’s Climate Innovation Forum, as part of the government’s broader £1 billion Net Zero Innovation Portfolio initiative, which seeks to promote state-of-the-art clean technologies, such as hydrogen, biomass and carbon capture.
The initiative is the government’s latest effort to enhance the country’s energy security and foster economic growth by providing financial support and encouraging innovation to help businesses reduce their carbon emissions and energy costs.
Among the successful projects to receive funding is the renowned breakfast giant Kellogg’s. Kellogg’s plans to utilise hydrogen as a fuel source for its cereal production process in Manchester, supported by a government investment of over £3 million.
Another beneficiary of the funding is Annadale Distillery, one of Scotland’s oldest whisky makers. The government is investing £3.6 million for the distillery to collaborate with Exergy3, funded by The University of Edinburgh, to develop a thermal heating system. This technology can store energy from electricity in special ceramic bricks, subsequently producing heating gas that can fully decarbonise the whisky-making process.
Minister for Energy Security and Net Zero, Graham Stuart, expressed his support for the funding, stating, “Whether it’s the first meal of the day or a nightcap, the great manufacturers of our country are striving to cut their carbon emissions and their energy bills – and in turn, support our efforts to boost our energy security.”
Minister for Energy Efficiency and Green Finance, Lord Callanan, also highlighted the potential of the transition away from fossil fuels, saying, “Britain has a long and proud history of pushing the boundaries in science – and our backing with over £80 million for these cutting-edge projects today will help make way for the next era of innovation.”
Several prominent companies secured funding in this round, including Burton’s Food, the largest biscuit maker in Britain which intends to replace a gas oven with a low-carbon electric alternative at its Dorset bakery and consumer goods giant Procter & Gamble (P&G) which plans to explore the integration of carbon capture, utilisation, and storage (CCUS) into its manufacturing processes.
The funding is part of the government’s £1 billion Net Zero Innovation Portfolio, which aims to scale up low-carbon technologies for use across various industries in the UK. The announced £82.9 million is allocated across three different programs: the Industrial Fuel Switching competition, the Hydrogen BECCS Innovation Programme Phase 2, and the CCUS Innovation 2.0 competition. These programs support projects developing low-carbon alternatives to fossil fuels, exploring biomass and waste conversion into hydrogen with carbon capture, and advancing carbon capture usage and storage technology, respectively.
The government’s commitment to reducing overall UK energy demand by 15% by 2030 and achieving greater energy independence has prompted these funding initiatives. In addition to the financial support, the government has released new reports providing guidance on hydrogen technology systems as part of the Industrial Hydrogen Accelerator program. These resources aim to facilitate the transition to alternative energy sources for UK industries.
Alongside the funding allocated today, the government has also published new reports to support the transition to alternative energy sources for UK industry. This includes guidance on designs for hydrogen technology systems, as part of the Industrial Hydrogen Accelerator programme.
The news comes shortly after the Climate Change Committee (CCC) shared its latest progress report with Parliament, suggesting that the country’s current plans lack the details and ambition to meet its emissions targets.
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