UK Government Allocates £50M+ to Drive Emission Cuts in Manufacturing

Image: The Kitt Green food processing factory in Wigan | Credit: Kraft Hein

The Industrial Energy Transformation Fund (IETF) injects millions into low-carbon technology adoption, helping businesses slash energy costs while accelerating the shift to sustainable industrial practices. This latest funding round, part of a £1.5 billion initiative running through 2028, has unlocked £154 million in total investments, with companies contributing around two-thirds of the costs.

Among the biggest beneficiaries is Heinz, securing £2.5 million to install heat pumps at its Wigan factory. These pumps will recover and repurpose waste heat, reducing fossil fuel dependence and significantly boosting energy efficiency. Heinz has also pledged £5 million of its funds to the project.

Heinz’s head of West Europe supply chain Saji Jacob said: “The UK business recognises the significance of the investment and is committed to further utilising this technology across our company.”

Minister for Industry Sarah Jones said: “Helping businesses of all sizes to reduce their emissions is core to our Plan for Change to achieve net-zero while growing the economy.

“These companies represent some of the best of business innovation – using new technologies to improve how we do things, become more sustainable, and continue to make the British products we love – from baked beans to beer.”

In North Wales, Hanson Cement has been awarded £5.6 million for a large-scale carbon capture and storage (CCS) project. Once operational, it is expected to capture 800,000 tonnes of CO₂ annually—equivalent to removing 320,000 cars from the road—while generating hundreds of jobs during construction.

Several other industrial players are receiving funding to support their sustainability transitions:

• Nestlé UK Limited: £786,000 for an evaporation technology upgrade at its Turbury coffee processing facility, which will reduce gas consumption in a £6.5 million project.

• Britvic: £304,000 to decarbonize its Rugby factory, contributing to a £1 million project in the West Midlands.

• Dale Farm Limited: £997,000 to install heat pumps at its Magherafelt site in Northern Ireland as part of a £2.8 million emissions-reduction initiative.

The beverage industry is also embracing decarbonization, with Paul’s Malt and Verdant Brewing Company leading efforts to produce green beer. Meanwhile, Novelis, based in Warrington, has secured nearly £14 million to expand its recycling capacity in a £63 million project, which is set to cut emissions by over 350,000 tonnes.

Since its launch in 2020, the IETF has played a crucial role in the UK’s industrial transformation, focusing on energy efficiency, carbon reduction, and sustainable growth. As funding continues through 2028, industries nationwide are leveraging these grants to future-proof operations, drive innovation, and strengthen the UK’s position in the global green economy.