Government backs businesses cutting carbon emissions, supporting jobs and growth 

From beer brewing to baked beans, dairy farms and cement, 25 businesses across the country have received nearly £52 million to reduce their carbon emissions to boost the UK’s mission as part of the Plan for Change to become a clean energy superpower and accelerate to net zero, supporting jobs and economic growth.

With industry paying for around two thirds of the project costs to cut emissions, this funding will help businesses of all sizes expand and innovate, including supporting new jobs through construction and operations – helping to cut their energy bills and boost local growth across the country.

Nestlé’s coffee processing site in Staffordshire, Heinz’s baked bean factory in Wigan, and a specialist craft beer company in Cornwall are among those benefitting from grants, supporting millions of pounds of investment made by winning companies, with many being small and mid-size businesses, to deliver emissions-cutting technology such as heat pumps and carbon capture – with projects worth £154 million in total.

This delivers the government’s Plan for Change to make Britain a clean energy superpower, driving economic growth and rebuilding Britain. The upcoming Industrial Strategy will also give investors and industry confidence to plan for the next decade and beyond, with clean energy industries a key sector identified to reignite the UK’s industrial heartlands and grow the economy.

Heinz, which received over £2.5 million and invested nearly £5 million of their own funding in the project, will use the funding to switch its dependence on fossil fuels to heat water, needed to blanch beans and boil spaghetti hoops, by installing heat pumps that reuse waste heat from other processes in the factory – improving energy efficiency to cut emissions and bills for the business, allowing them to invest more in other areas.

Hanson Cement in North Wales will use its £5.6 million grant to support its multi-million-pound carbon capture and storage project – creating hundreds of jobs during construction and capturing 800,000 tonnes of CO2 emissions per year once operational – the equivalent of taking 320,000 cars off the road.

As well as support for individual businesses, setting them up for a more sustainable future as well as cutting energy costs and streamlining production, the government recently confirmed that contracts have been signed agreements for the UK’s first carbon capture project in Teesside, marking the latest milestone in the government’s mission to reignite its industrial heartlands, tackle the climate crisis and turbocharge growth for decades to come.

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.”

Other winners include Paul’s Malt and Verdant Brewing company, two businesses leading the way in decarbonising beer production, as well as Warrington-based Novelis who received nearly £14 million to expand its recycling capacity – part of a £63 million project that will reduce the company’s carbon emissions by over 350,000 tonnes.

The government also continues to invest in renewable energy projects, with a record number of projects secured earlier this year, to ensure homes and businesses benefit from clean, homegrown electricity – protecting them from the rollercoaster of fossil fuel markets.

Saji Jacob, Head of West Europe Supply Chain, Heinz, said, “The Industrial Energy Transformation Fund has enabled this energy efficiency project to become a reality at our largest food manufacturing plant in Europe.

“It represents a critical step in our decarbonisation journey towards Net Zero. The UK business recognises the significance of the investment and is committed to further utilising this technology across our company.”

Simon Willis, CEO Hanson UK, said, “I would like to thank government and all those that supported us in our bid to receive funding, which will enable us to help decarbonise the construction industry and meet our overall ambition to become a net zero business.

“This global exemplar project will provide net zero construction materials for major projects across the country, from new offshore wind farms and nuclear power stations, to clean transport infrastructure, as early as 2028.”

List of businesses awarded IETF grants: