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UK government provides £51.9 million for emissions-cutting projects

January 14, 2025
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Almost £52 million has been awarded to 25 businesses in the UK to support the adoption of innovative emissions-cutting projects, including carbon capture and storage, as part of the government’s Plan for Change, which aims to expedite the energy transition and progress to net zero.

The fund will help deliver emissions-cutting technology such as heat pumps and carbon capture – with projects worth £154 million in total.

Recipients include: Nestlé’s coffee processing site in Staffordshire, Heinz’s baked bean factory in Wigan, and a specialist craft beer company in Cornwall. Many are said to be small and mid-size businesses.

“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,” said a statement.

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 carbon capture and storage project, which the government said will create hundreds of jobs during construction and capture 800,000 tonnes of CO2 emissions per year once operational.

The news follows a recent announcement that contracts have been signed 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 brewing firms Paul’s Malt and Verdant Brewing company, 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.

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.

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