From hydrogen to EVs: Government unveils winners of £46m green innovation funding
More than 20 UK businesses have received shares of a £46m funding pot from the Government to promote clean energy innovation including hydrogen, data centre chillers and alternatives to diesel for vehicles.
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The UK Government has confirmed the 26 businesses and projects that have been granted funding for low-carbon innovation.
A total of £46m has been granted and will be shared across the successful applications, with the primary focus to help sectors switch to clean energy and decarbonisation in line with the overarching net-zero strategy for 2050.
Minister for Energy Consumers and Affordability Amanda Solloway said: “As we continue towards our goal of reaching net zero by 2050, we want to ensure businesses have all the support they need to power our transition to a cleaner, cheaper energy system.
“Our funding will support ground-breaking projects in malting, construction and manufacturing so businesses can incorporate green energy into their day-to-day operations.”
A total of £46m will be shared through various Government funding streams. More than £25m has been grant to six winning projects from Phase 2 of the Red Diesel Replacement Competition. These applicants will also receive £14.2m of private investment.
A total of £13m will be shared by 18 projects from Phase 2 of the Industrial Energy Transformation Fund (IETF). This will be matched with almost £23m of private sector funding. Additionally, £7m will be split by two winning projects from the Final Phase of the Industrial Hydrogen Accelerator Competition, which will be matched by £5.7m in private funding.
As detailed in the Hydrogen Strategy’s commitments to launch new business models for hydrogen storage and transportation by 2025, a £26m Industrial Hydrogen Accelerator has been launched.
One winner in the latest round of funding from the accelerator is the Bay Hydrogen Hub, run by EDF Energy Generation. The Hub generates low-carbon hydrogen using steam from the generation of nuclear energy and will support the asphalt industry move to a cleaner fuel source.
The Red Diesel Replacement and Industrial Hydrogen Accelerator competitions are funded through the Government’s £1bn Net Zero Innovation Portfolio.
As for the Red Diesel Replacement Competition, Catagen is one of the stand out winners. The organisation will use funding on new technology to produce green hydrogen and e-diesel for industrial vehicles in Northern Ireland.
Elsewhere, Danfoss is testing a pump and motor system in an excavator at an Edinburgh quarry, improving energy efficiency and supporting the transition to electric off-road vehicles.
Other notable projects include efforts to upgrade data halls by switching to more efficient chillers to help cut their energy consumption.
The Government claims the funding will help cut industrial emissions, which account for around 16% of the UK’s total carbon footprint at present.
The production of fossil-free or green hydrogen is important but what is lacking in this round of funding is support for hydrogen filling stations particularly for heavy vehicles, HGVs, buses, refuse collection vehicles and local commuter trains which will all take years to convert from diesel power. This compares with the EU target to have a hydrogen filling station on every major road no further apart than 200 kms by 2030. Our National Infrstructure Commission advises that they are concentrating on EV charging points which is placing an increasing strain on our overloaded grid. With the possibility that the UK will soon be flooded with cheap but quality EVs from China such as the Byd who’s worldwide sales are now greater than Tessla; this is an energy accident waiting to happen.