£80million boost to help UK businesses tackle carbon emissions

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Over $80 million in cash to help businesses reduce their carbon footprint, including funding for some of Britain’s biggest brands to be announced by Energy Minister Graham Stuart at the UK Climate Innovation Forum , as part of a billion effort to support state-of-the-art clean technologies

From the production of hydrogen cornflakes to the distillation of low-carbon Scotch whisky, companies across the UK have today (28 June 2023) been awarded a share of over £80 million in government funding to ditch the expensive fossil fuels in favor of cleaner alternatives.

Breakfast giant Kelloggs is among 29 successful projects to change their production processes to reduce emissions. The company plans to use hydrogen to power its cereal manufacturing process in Manchester, backed by more than 3 million in government investment.

Meanwhile, one of Scotland’s oldest whiskey makers, Annadale Distillery, will also take a step towards a new low-carbon future, with a government investment of $3.6 million in new thermal heating technology . This will see the distillery working with Exergy3 Ltd to develop a system that stores energy from electricity in special ceramic bricks, to then produce heating gas that could completely decarbonize the whiskey making process.

Today’s funding, announced by Energy Security and Net Zero Minister Graham Stuart, puts companies on a path to revolutionizing their industry with cleaner energy sources, such as hydrogen and biomass. This is the government’s latest initiative to boost the UK’s energy security and grow the economy.

Energy Security and Net Zero Minister Graham Stuart said:

Whether it’s the first meal of the day or a nightcap, our nation’s leading manufacturers are working to reduce their carbon emissions and energy bills – and, in turn, support our efforts to strengthen our energy security.

Our investment of over $80 million will help them go further and faster, using the latest science, technology and new energy sources to cut ties to fossil fuels and future-proof their industries.

The minister will announce the winners at today’s Climate Innovation Forum, where hell is calling on industry leaders and international bodies to support the green innovation campaign, as part of the flagship event of the London Climate Action Weeks.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

Britain has a long and proud history of pushing the boundaries of science and our support of over $80 million for these cutting-edge projects today will help usher in the next era of innovation.

Moving away from fossil fuels presents a huge opportunity for our growing green energy sector and we will continue to ensure that UK businesses can realize their full potential.

Another big name receiving a share of the funding is Britain’s biggest biscuit maker, Burtons Food Ltd – home to Maryland Biscuits and Jammie Dodgers, which will see them innovate to replace a gas oven with electricity low-carbon, in their bakery in Dorset, thanks to more than 3.3 million from the government.

Around 950,000 will also go to consumer goods giant Procter & Gamble (P&G) to explore how to incorporate CCUS into their manufacturing, extracting carbon from the company’s waste streams to help reduce emissions. The project will take the form of a new search engine, CarboNation, in partnership with Newcastle Universitys School of Engineering and the Center for Process Innovation.

The energy projects receiving support today are part of the latest round of the government’s $1 billion Net Zero innovation portfolio, which aims to develop low-carbon technologies for use in UK industries.

The 82.9 million announced today include:

Industrial Fuel Switching competition: 13 companies, from a paper factory to glass manufacturers, will receive a total of 52.5 million to support projects developing low-carbon alternatives to fossil fuels, such as hydrogen or biofuels Hydrogen BECCS Innovation Program Phase 2: 5 winning projects received a total of 21.2 million to transform biomass and waste, such as wastewater, into hydrogen with carbon capture CCUS Innovation 2.0 competition: 11 winning projects, including the CO2 recycling for fertilizer production, will receive a total of 9.2 million to develop the latest technology in carbon capture and storage

The funding is part of the government’s commitment to reduce the UK’s overall energy demand by 15% by 2030, alongside the UK’s wider ambition to move towards greater energy independence.

Dr. Markus Rond, CEO of Exergy3, said:

Decarbonising industry is a fundamental part of the UK’s race to net zero. However, until now, the extremely high operating temperatures of many industrial processes have made the task technically and financially difficult.

NZIP funding allows us to build a full-scale demonstrator at the Annandale Distillery in Scotland. For the technological and commercial development of Exergy3, it will be a big step forward and we are all very happy to try the first batch of low or no carbon whiskey from Annandales.

Scott Frame, Vice President, R&D and Site Manager, Newcastle Innovation Centre, said:

CarboNation is a great example where innovation can be applied to carbon capture and utilization technologies to solve specific challenges that affect not just P&G, but also the fast moving consumer goods industry and society as a whole. .

We are truly thrilled to have received this grant, alongside other valued partners, to accelerate P&G’s understanding in this area, supporting our collective pursuit of broader sustainability goals.

Alongside the funding allocated today, the government has also released new reports to support the transition to alternative energy sources for UK industry. This includes advice on the design of hydrogen technology systems, as part of the Industrial Hydrogen Accelerator program.

Notes to Editors

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