Grant Funding Available for Manufacturing Sites & Data Centres

Grant Funding Available for Manufacturing Sites & Data Centres
06 November 2018

Launch of Industrial Heat Recovery Support Programme – Grant Funding Available for Manufacturing Sites and Data Centres

On 15 October the Department for Business, Energy and Industrial Strategy (BEIS) announced the launch of the Industrial Heat Recovery Support (IHRS) programme. This is a grant funding programme open to manufacturing sites and data centres who would like support to scope out and implement projects to recover and utilise surplus heat. Here, Dr Richard Hodges explores the programme’s objective and explains how Ricardo can support businesses to apply for funding and develop viable heat recovery projects that deliver the greatest long-term value.  

Why the programme?

Government work has shown that there is significant untapped potential to recover and reuse heat from industrial processes. This represents a missed opportunity for reducing operational costs, improving competitiveness and achieving further decarbonisation. Industrial operators are not implementing heat recovery projects because of a lack of knowledge and information about the potential to do this at their sites and the long payback periods when specific projects are identified, scoped and costed. The IHRS programme has been developed to address these barriers by providing grant funding for feasibility studies and for the actual implementation of projects to recover and reuse heat.

Who is eligible?

The programme is open to manufacturing sites located in England and Wales whose activities fall under Standard Industrial Classification (SIC) codes 10-33. It is also open to data centres (HVAC and ancillary systems only).

What types of activity are eligible?

All activities in the lifecycle of a heat recovery project are eligible for grant funding. This means that grant funding is available against the costs incurred when carrying out the following: feasibility studies, preliminary engineering, detailed design, and capital project delivery.

How much money is available?

In all, there is £18 million of grant funding available. £4.2 million is available for feasibility studies and preliminary engineering and £13.8 million is available for detailed design and capital delivery.

Applicants may receive up to 50% of grant funding against the costs of feasibility studies, preliminary engineering and detailed design. Up to 30% of grant finding is available for capital project delivery. Uplifts to these grant funding levels are available for small and medium sized enterprises and projects located in specific locations.

When can I apply?

Applications are being received now. There is a continuously open application window running until the end of September 2019. Applications received are not assessed continuously but during assessment windows, each of two months’ duration. There are six assessment windows between January and September 2019.

Crucially, this means that all applicants wishing to access this grant funding must make their applications by the end of September 2019 at the latest. Moreover, BEIS are front loading the availability of grant funding towards the earlier assessment windows.

How do I apply?

Application is made by email to BEIS’s Delivery Partner for the programme. Interested applicants must first register their interest in making an application using a form available online

The delivery partner will then email the applicant further instructions about what to do next.

How Ricardo can help

  • Ricardo worked closely with BEIS in defining the scope, eligibility and assessment criteria of the programme, so we understand what a successful project would look like.
  • Our CHP and heat experts have a comprehensive range of skills and experience key to scoping out and implementing heat recovery opportunities. These include: knowledge of industrial processes and heat recovery technologies, generation and audit of mass and energy balances, due diligence of technical proposals, owner’s engineer services and project financial appraisal. These are key for identifying and progressing technically sound projects which can be implemented efficiently and generate long term cost and carbon savings.
  • We are impartial. We are not a technology supplier, so our advice is technology neutral and based solely on each solution’s technical and economic merits.

Future Blogs

We will be producing additional blogs on the IHRS to help potential applicants navigate the programme and submit strong applications. My next blog on 20th November will provide more details on the application process and the characteristics of strong applications.

If you’d like to get in touch with me to discuss, please email: Richard.Hodges@ricardo.com