£166 million cash injection for Green Technology and 60,000 UK jobs

Government announces major cash injection for green technology and development as part of Green Industrial Revolution.

The green technology required to help the UK meet its world-leading climate targets has been given a £166.5 million cash injection, just six months on from the publication of the Prime Minister’s 10 Point Plan for a Green Industrial Revolution.


The multi-million pound investment, awarded to innovators, businesses, academics and heavy industry right across the UK, will accelerate the delivery of the critical game-changing technologies needed to further drive Britain’s climate change ambitions, while creating over 60,000 jobs across the UK.


The £166.5 million funding package announced today (Monday 24 May) will develop technologies in carbon capture, greenhouse gas removal and hydrogen, while also helping find solutions to decarbonise the UK’s polluting sectors including manufacturing, steel, energy and waste.


This investment will help put the UK at the forefront of the green technologies of the future, while supporting British industries to lowers costs, remain competitive and protect jobs as they improve their energy efficiency and transition to a green economy.


This significant investment will help the UK meet its ambitious climate commitments, including reaching net zero emissions by 2050 and the world’s most ambitious climate target of reducing UK emissions by 78% by 2035 compared to 1990 levels.


Energy Minister Anne-Marie Trevelyan said: "We are determined to tackle climate change and make it win-win for both our planet and our economy. Today’s major cash boost – targeted at our most polluting industries - will encourage the rapid development of the technologies we need to reign in our emissions and transition to a green economy, one that reduces costs for business, boosts investment and create jobs.

"Just six months ago, the Prime Minister set out a clear 10 Point Plan for creating and supporting up to 250,000 British jobs as we level up and build back greener from the pandemic. Today we’re boosting our armoury for the fight against climate change and backing innovators and businesses to create green jobs right across the United Kingdom."


The Prime Minister’s ambitious 10 Point Plan committed to removing ten megatonnes of carbon dioxide, generating 5GW of hydrogen by 2030, and creating 250,000 green jobs.

Today’s announcement takes the UK closer to delivering on these commitments and includes:

  • £60 million to support the development of low carbon hydrogen in the UK and to identify and scale-up more efficient solutions for making clean hydrogen from water using electricity. This will take the UK one step closer to using low carbon hydrogen in key industries across the UK – from powering transport such as trains and ships to factories and the heating systems in our homes. This funding will help create around 8,000 hydrogen jobs set out in the 10 Point Plan.

  • £37.5 million to fund the largest government programme of greenhouse gas removal methods helping cement the UK’s status as a world-leader in this technology. Of this, twenty-four projects across England and Wales will receive up to £250,000 to fund innovative designs that develop new ways of removing greenhouse gases from the atmosphere and store them safely, and a further 5 projects will receive up to £4.5 million each to investigate the viability of adopting greenhouse gas removal methods at scale.

  • £20 million to support the development of the next generation Carbon Capture, Usage and Storage (CCUS) technologies so they can be deployed at scale by 2030. This could include funding innovative technologies that widen the suitability of CCUS to a larger range of UK industrial uses such as chemicals and cement, reducing the cost of deploying CCUS and helping industrial waste or power sector companies to capture and store harmful emissions from the source, before they are emitted into the atmosphere.

  • £20 million to establish a new virtual Industrial Decarbonisation Research and Innovation Centre that will accelerate the decarbonisation of key energy-intensive industries which currently make a significant contribution to UK emissions. Run by Heriot-Watt University, Edinburgh, the Centre will bring together new technologies and address the challenges faced by industrial areas, helping to provide solutions that reduce costs, risks and emissions. This centre will connect and empower the UK industrial decarbonisation community with over 140 partners, including industry and business, government and regulatory agencies and world-leading academics, working together to deliver an impactful innovation hub for industrial decarbonisation.

  • £16.5 million through the Industrial Energy Transformation Fund to develop new technologies and processes that help energy-intensive sectors cut their emissions, while reducing their energy bills. Projects receiving funding include Tate & Lyle to decarbonise its London sugar refinery and cut emissions by up to 90% and Celsa Manufacturing to install new technologies that improve energy efficiencies in the process to melt scrap metal and produce steel. BAE Systems will also receive funding to install energy efficient technology that could save equivalent annual emissions of around 700 households.

  • £8 million for projects to develop innovations, such as repurposing textile waste, new clay production techniques for the ceramics industry and concrete manufacturing that support the rapid recovery and sustainability of UK industry. Projects include developing glazes for fast-fire manufacturing of ceramic tiles made entirely from recycled waste, creating a cost-efficient, low carbon concrete manufacturing solution using waste materials and developing the world’s first, high temperature heat pump that can compete commercially with burning fossil fuels.

  • £4.7 million will establish a new Transforming Foundation Industries Research and Innovation Hub. The hub will be led by Cranfield University and will help industries like metals, glass, cement, paper and glass to work together and address their common challenges while accelerating the development and adoption of new technologies and business models. This could include creating new, smart materials and processes that enable cheaper, lower energy and low carbon products.

On Wednesday, the newly formed Net Zero Expert Group will meet for the first time. Chaired by the Business & Energy Secretary Kwasi Kwarteng, this group was a key commitment set out in the PM’s Ten Point Plan, and brings together an expert group as part of Task Force Net Zero to drive forward net zero targets, providing advice on tackling climate change and helping to develop new polices to support the development of the government’s Net Zero Strategy.


This will be published ahead of the UN climate summit COP26 taking place in Glasgow this November.


Challenge Director for UK Research & Innovation’s (UKRI) Industrial Decarbonisation challenge Dr Bryony Livesey said: "The introduction of the Industrial Decarbonisation Research and Innovation Centre concept shows the commitment to not only fund largescale decarbonisation efforts, but to make sure we continually learn from and adapt to their early results and challenges.


"By enabling the Centre to build evidence on a range of areas from direct costs and emissions to skilled jobs and wider net zero policy, we believe we are creating a more adaptive and responsible path for the UK’s big industry to take to remain at the forefront of a global low carbon culture."


Challenge director of UKRI’s Transforming Foundation Industries challenge Bruce Adderley said: "For the Foundation Industries there are huge benefits to be gained by looking at reducing and re-using waste materials that arise from the creation, processing and use of the products manufactured by these sectors, so it is inspiring to see so many innovations that tackle this challenge head on.


"The focus these projects bring on greener alternatives, lower emissions, and energy saving, will have an impact across the economy, support the move towards net zero in the UK, and we look forward to helping them bring their innovations to fruition. The research hub also represents a crucial step forward in addressing innovation in these industries, by introducing a more collaborative environment to share knowledge and experiences."


Professor Mercedes Maroto-Valer at Heriot-Watt University said: "The role of the Industrial Decarbonisation Research and Innovation Centre will be to consider a wide-range of opportunities and challenges for the industrial sector to decarbonise– starting with the industrial clusters and our joint ambition to deliver the world’s first net zero industrial hubs by 2040.


"The research and evidence we’ll work through with our academic and industry partners across the UK will not just focus on industry itself, however, but also how it will shape society and economies at both a local and national level. It’s a key part of making sure the UK heads down the most effective path with its decarbonisation efforts and I’m looking forward to starting the journey."


£86 million of the total funding package announced comes from the government’s £1 billion Net Zero Innovation Portfolio, which provides funding for low-carbon technologies and systems, helping the UK end its contribution to climate change.


Projects receiving funding include:

  • Professor Christopher Evans, UK Centre for Ecology and Hydrology is being backed with almost £4.5 million to manage and restore peatlands to maximise their greenhouse gas removal potential at farmland near Doncaster, and at upland sites in the South Pennines and in Pwllpeiran, West Wales. Peatlands store more carbon than any other ecosystem on land, but as a result of human disturbance they are rapidly losing this carbon to the atmosphere. This project will re-create, and where possible enhance, the environmental conditions that lead to peat formation, and to re-establish a secure long-term carbon store in the landscape.

  • Celsa Manufacturing, Cardiff, Wales, will receive £3 million to install new technologies to reduce emissions and improve energy efficiencies in the process to melt scrap metal and produce steel. Further, this project could