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UK plans to fund new technologies to decarbonise industrial clusters


Two competitions, run by UK Research and Innovation (UKRI) on behalf of the government, are opening this week focused on helping the UK achieve net zero emissions by 2050 as part of the Industrial Decarbonisation challenge.

The Industrial Decarbonisation challenge will commit £170 million towards deploying technologies like carbon capture and hydrogen networks in industrial clusters, supporting the Industrial Clusters Mission to establish the world’s first net zero industrial cluster by 2040.

The first phases of the two competitions are as follows:  

  • Deployment – In the first phase of this competition, UK businesses will have the opportunity to apply for a share of up to £1 million to develop plans for decarbonising an industrial cluster. Successful applicants from phase 1 will then compete for phase 2, where up to £131 million will be awarded for projects that will deliver, or support delivery of, significant emissions reductions in a UK industrial cluster by 2030.
  • Roadmaps – In the first phase of this competition, UK businesses can apply for a share of up to £1 million to prepare plans for their journey to achieving low carbon and net zero industrial clusters. In phase 2 up to £8 million will be awarded for the development of industrial cluster decarbonisation roadmaps for major UK industrial clusters. These must set out how a cluster could be decarbonised to net-zero levels.

Bryony Livesey, Interim Challenge Director, Industrial Decarbonisation said: “This is a great opportunity for businesses to contribute to decarbonising a cluster of industries. These initial competitions are an important first step for businesses to tell us their ideas and plans to accelerate cost-effective decarbonisation as part of a wider cluster of firms and solutions. I’d urge businesses to engage with these competitions as it provides a front door to more significant funding opportunities through the challenge at the next stage and will be a key component of the UK achieving its net zero emissions goal by 2050.”

For more information on these funding opportunities please see here.


Notes to editors

The Industrial Strategy Challenge Fund (ISCF) brings together the UK’s world-leading research base with our best businesses to transform how we live, work and move around. It will put the UK in the best position to take advantage of future market opportunities.

Industrial Decarbonisation – this challenge will boost the competitiveness of key industrial regions and drive inward investment, creating and protecting jobs for a low-carbon global economy with growing low-carbon export markets. The challenge will support delivery of the Clean Growth Grand Challenge and the Industrial Clusters Mission, which has set an ambition to establish the world’s first net-zero carbon industrial cluster by 2040, with at least one low-carbon industrial cluster by 2030. The Mission, and this challenge, will help to place the UK at the forefront of the global shift to Clean Growth, by driving the technologies, services and markets to produce low carbon industrial products.

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