Read end-to-end by a FundingAtlas editor against the official source.
Quick answer
The Industrial Energy Transformation Fund (IETF) provides DESNZ capital and feasibility / engineering-study grants to high-energy UK industrial sites cutting energy use and emissions. Open to existing manufacturing facilities — not new builds, speculative projects or non-industrial sites. Typical awards range from £100k feasibility studies to multi-million-pound deployment grants. Best suited to sites that have already scoped abatement options and have board-level commitment to invest the matched capital.
Funding amount
£100k–£30m
Region
United Kingdom
Stage
Established
Provider
Innovate UK
Advisor view
IETF is a technical capital-grant programme aimed at decarbonising existing UK industrial sites. Reviewers expect engineering-grade evidence — feasibility studies, vendor quotes, energy baselines, and a credible path from intent to installed capacity. It is not a fit for early-stage innovators developing new decarbonisation technology — that work belongs in Net Zero Innovation Portfolio calls or Energy Entrepreneurs Fund.
Frequently asked questions
- Who is Industrial Energy Transformation Fund really for?
- It works best for organisations that already meet the eligibility test on paper and have the operational maturity to deliver — not for businesses hoping the application will force them to formalise.
- What are the most common reasons applications are rejected?
- Weak evidence, eligibility misses, and applications that read as business as usual rather than the specific intent of the scheme. Most rejections are avoidable with earlier preparation.
- Can early-stage startups apply?
- Sometimes — but the strongest applicants usually have at least minimum trading history, a defined plan and the team to deliver. If you are pre-revenue with no plan, expect to be too early.
- How competitive is it?
- Demand routinely outstrips supply for the high-profile UK programmes. Treat any competitive call as a serious bid that needs four to six weeks of preparation, not a weekend.
- What should I prepare before I apply?
- A short written summary of what you are doing and why it qualifies, your latest accounts or forecasts, and any partner or evidence the scheme expects. Get adviser sign-off before submission.
- What happens after a successful application?
- Expect monitoring, reporting and milestone evidence. Plan the reporting cadence and internal owner before the funding lands, not afterwards.
Who it's for
IETF is designed for: • High-energy-using industrial businesses in England, Wales, or NI (Scotland runs a separate scheme). • Manufacturing, chemicals, food and drink, paper, cement, glass, ceramics, metals, and similar energy-intensive sectors. • Sites with measured baseline energy consumption and a costed engineering proposal for deep decarbonisation or energy efficiency. • Three distinct strands: (1) feasibility studies, (2) engineering studies, and (3) deployment of energy efficiency or deep decarbonisation projects. Match a project to the right strand. • Capital projects with credible payback but where the grant unlocks earlier or larger investment than the business would commit unaided.
Probably not for you if…
Not a fit when: • You are in Scotland — different scheme. • Your site is not energy-intensive at industrial scale. Office decarbonisation, EV chargers, or commercial-scale solar are not IETF projects. • You do not have measured energy data. Estimated or modelled baselines without metering rarely survive technical review. • Your project is at idea stage with no engineering work behind it. • You cannot match-fund (often 30–70% depending on project type, size, and location). • You need a decision before the next competitive window closes. • Your project is mandated by regulation (e.g., already required under ETS, MEES, or a permit condition) — additionality fails.
Usually too early when
Advisor signal
You do not yet have a baseline of current energy use, the technology is not yet at deployment readiness on an industrial site, or the project depends on planning consents not yet in motion.
Eligibility checklist
Industrial site in England, Wales, or Northern Ireland
Scotland is covered by a separate scheme.
Genuinely energy-intensive industrial activity
Manufacturing, process industries, etc. — not commercial or office.
Measured baseline energy data
At least 12 months of metered consumption.
Engineered project or study scope
Match the application to the right strand (feasibility, engineering, deployment).
Defensible additionality
Grant must change what the business would otherwise do.
Ability to match-fund
Often 30–70% depending on project type, size, and location.
Clean subsidy control position
Including cumulation with other public funding.
Evidence you'll need
Technical and financial evidence that carries weight: 1. **Measured baseline energy data** — ideally half-hourly or sub-metered, with at least 12 months history. 2. **Engineered project definition** — equipment specification, supplier quotes, integration plan, commissioning approach. 3. **Carbon and energy savings calculation** with a defensible methodology (engineering first-principles or DESNZ-aligned tools). 4. **Financial appraisal** — capex, opex, payback, IRR, and sensitivity analysis. Reviewers expect investment-grade financials. 5. **Project plan** with construction, commissioning, and benefits realisation milestones. 6. **Subsidy control assessment** — IETF awards are subject to UK subsidy rules. 7. **Match funding evidence** — board approval, committed capex, or financing.
Required documents
Measured baseline energy data
Half-hourly or sub-metered, 12+ months.
Feasibility / engineering study (for deployment applications)
From a credible engineering source.
Detailed project plan and equipment specification
With supplier quotes and integration plan.
Carbon and energy savings calculation
Engineering first-principles or DESNZ-aligned methodology.
Financial appraisal
Capex, opex, payback, IRR, sensitivity.
Board approval of capex (conditional on grant)
Minutes or signed approval.
Subsidy control assessment
Including cumulation.
Application timeline
Realistic preparation timeline for a deployment application: • **Months -12 to -6:** Baseline metering, feasibility study, engineering study. • **Months -6 to -3:** Supplier engagement, capex appraisal, board approval. • **Months -3 to 0:** Application drafting — technical, financial, subsidy control, project plan. • **Submission:** Within the current competition window. • **Decision:** Typically 3–6 months after window close. Feasibility and engineering study applications are lighter but still expect 2–3 months preparation.
Common reasons applications fail
Weak energy baseline, no technology choice rationale, missing match funding, or treating IETF as a substitute for capital they would have spent anyway with no additionality.
What improves your odds
A completed or commissioned feasibility study, named technology vendor, credible match funding, clear MWh and tCO2 savings figures, and a site engineering team able to deliver.
Typical successful applicant
An established UK industrial operator (manufacturing, chemicals, food processing, glass, ceramics, paper) with measurable site energy use and a defined deep-retrofit or process-heat decarbonisation project.
Common misconceptions
That IETF funds R&D — it does not. That feasibility-only projects are easy wins — they still require strong baselining and technology choice rationale.
What happens next
On award, expect a grant offer letter with conditions, cost categories, claim mechanism (pay-then-claim against actuals), independent monitoring, and post-completion benefits reporting (energy and carbon savings tracked for several years). Construction and commissioning timelines are taken seriously — slippage requires formal variation approval.
- 1
Confirm which IETF competition window is live and which strand fits
Feasibility, engineering, or deployment — they have different evidence bars.
- 2
Audit your baseline energy data
If you do not have 12 months of metered data, fix that first.
- 3
Commission or refresh engineering work
Deployment applications need real engineering, not concept slides.
- 4
Build an investment-grade financial appraisal
Capex, opex, payback, IRR with sensitivities.
- 5
Get capex conditionally approved by the board before submission
Uncommitted match is discounted.
What comes next
Sites that deliver an IETF project often move into wider decarbonisation roadmaps, repeat IETF rounds for adjacent assets, or layer in private green finance for the balance of capex.
Funding context
IETF sits at the deployment-and-capital tier of the UK net zero funding ladder, downstream of innovation programmes like Net Zero Innovation Portfolio and Energy Entrepreneurs Fund.
Related routes
- Boiler Upgrade Scheme vs Energy Entrepreneurs Fund
- Net Zero Innovation Portfolio vs Industrial Energy Transformation Fund
- Which Net Zero support is right for my project?
- What funding should UK manufacturers pursue first?
- Net Zero Pathway
- Innovate UK Net Zero Living
- Farming in Protected Landscapes
- Offshore Renewable Energy Catapult Programmes
Industries
Regions