Government makes £166 million cash investment in green tech

Sunset over the green hills countryside in England, Dorset

The UK’s green technology sector has been given a £166.5 million cash injection from government.

The funding package announced today 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.

£60 million will 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.

£37.5 million will fund the largest government programme of greenhouse gas removal methods. 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 will 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 will 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. The centre will be run by Heriot-Watt University, Edinburgh.

£16.5 million through the Industrial Energy Transformation Fund will help develop new technologies and processes that help energy-intensive sectors cut their emissions, while reducing their energy bills. BAE Systems is one of the companies which will receive some of this 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.