The UK has announced a £116 million fund to boost green innovation for UK businesses and a £19 million increase to the Energy Entrepreneurs Fund.

Announced this week, Tuesday 7th December, the UK Government has invested over £116 million to boost green, innovative technologies. The funding aims to help businesses across the UK reduce carbon emissions in line with net-zero targets.

The support provided by significant funding will assist the growth of new and existing projects across the UK and develop revolutionary technology that will increase energy efficiency, reduce carbon emissions and provide energy security with cleaner generation. Government support and incentives such as these keep the UK at the forefront of green innovation and generate new green jobs and additional private funding.

Energy and Climate Minister said:

“This £116 million government investment will support businesses across the nation to turn their green ideas into reality, and to develop ground-breaking projects that save energy, slash utility bills and tackle pollution”

From the announcement, £64 million was made available by the Government through the Direct Air Capture and Greenhouse Gas Removal programmes. The programmes enabled businesses developing new technologies to the UK to bid for a share of the fund for project support.

The first phase of the programme will support projects developing a range of new technologies such as absorbents that can capture CO2 using Direct Air Capture and from natural materials using Bioenergy with Carbon Capture.

The second phase of the programme will develop projects from a design stage into demonstration projects that can be scaled to commercial projects by 2025.

In addition to new funding investments, 58 SMEs will be receiving grants to develop and demonstrate technologies covering energy efficiency, generation and storage. These grants come as part of the Energy Entrepreneurs Fund, which provides £30 million for decarbonisation and energy-saving technologies.

The Energy Entrepreneurs Fund was previously set at £11 million however, due to the large volume of high-quality applicants, an additional £19 million was put forward. The funding increase is an example of the UK’s determination to promote innovation and support green businesses.

The direct funding to support businesses has also been backed by £22.8 million, which will provide the awarding SMEs with services to accelerate their projects. Industry experts will ensure that these businesses receive the best consultation and business development advice by using the allocated funds. By doing so, the businesses can take full advantage of their fund and enable upscaling.