By Nick Churchward and Emma Andrews
As previously reported, the Industrial Heat Recovery Support programme (“IHRS”) is aimed at overcoming the barriers to the recovery and re-use of waste heat from industrial processes. Industrial heat recovery is defined widely and includes any process by which heat generated in or for an industrial process, that otherwise would be wasted, is recovered and used. The heat can be used within the same facility, by another end-user (via a new or existing heat network) or by converting waste heat to power. In a change from the consultation, the programme will now include data centres.
What grants will be available?
BEIS have decided upon a two-phase programme to help increase the deployment of industrial heat recovery technologies and to boost industry confidence in identifying and investing in heat recovery opportunities:
- £6 million will be available in Phase 1 to provide support for feasibility studies
- Phase 2 will provide £12 million financial support, delivered through competitive grant funding.
BEIS has said it will adopt a fuel and technology neutral approach.
The capital grants available can work alongside the funding provided under the Heat Network Investment Project.
BEIS believe that, over its lifetime, IHRS has the potential to reduce total industrial energy bills by over £500 million, which will bring industrial competitiveness and productivity gains, and help to insulate industry from future energy price fluctuations.
There is some concern from respondents that this funding does not go far enough, given the high level of commitment and resources needed from applicants, and that any application process should not be overly complex.
What happens next?
Further information is awaited in guidance, which is to be issued ahead of the programme opening for applications in the autumn.
Industry will await this keenly in order to assess whether the IHRS presents a real opportunity for much needed investment. It is clear that heat emissions continue to be a key area of focus for the government in its plans to meet legally binding carbon budgets.
How can Burges Salmon help?
Burges Salmon’s award-winning energy lawyers have a wealth of experience advising on heat projects and networks and are continuing to track policy developments.
If you are interested in hearing more on this subject, please contact Nick Churchward, Emma Andrews or your usual Burges Salmon contact.