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Welsh projects receive £5.5 million in funding to help reduce carbon emissions

13 Feb 2023 3 minute read
Celsa Steelworks in Cardiff. Photo by nicksarebi is licensed under CC BY-NC-ND 2.0.

Three projects in Wales have secured funding from the UK Government to help them reduce carbon emissions and their energy bills

The investment forms part of a UK-wide scheme to help to future-proof industries in the transition to a lower carbon economy.

A local food processor in Carmarthenshire and two steel projects in Cardiff are three of the 22  projects across England, Wales and Northern Ireland to have been awarded funding to help clean up their industrial processes.

Dunbia, one of the biggest food companies in Europe, has been awarded £1,024,100 to upgrade its heating system from a gas oil fired steam boiler to an air source heat pump, powered by renewably sourced electricity.

This will allow the company to harvest food products and process the them with hot water washing, through a sustainable and energy efficient thermal supply system, reducing carbon emissions.

Celsa Manufacturing in Cardiff is a leading user in the UK of an Electric Arc Furnace – the most environmentally friendly and sustainable technology currently available to produce steel.

The company has been awarded £3,868,481 for a project which uses its inhouse expertise of shredding and repurposing steel scrap to maximise efficiency.

£426,970 has also been awarded to support its study into hydrogen-based steelmaking techniques, with the IETF funds supporting plans to replace their reheat furnace into a bespoke furnace fired using Green hydrogen.


It is estimated that the steel industry is currently responsible for producing 16% of the UK’s emissions and these will need to be reduced by two thirds by 2035 in order for the net zero target to be met.

Graham Stuart, Minister at the UK Department for Energy Security and Net Zero said: “South Wales has both a proud history of industrial enterprise and a wide catalogue of next generation green innovators.

“That is why today the UK government has awarded two leading Welsh companies with funding that will help to boost the energy efficiency of their industrial processes.

“This will create new opportunities for the region to become a leader in the low carbon sector, while cutting costs and securing jobs and investment for the region.”

Welsh Secretary of State, David TC Davies added: “It’s great to see significant UK Government investment supporting green technology in Wales and helping energy intensive businesses cut their emissions and their fuel bills.

“We want employers to grow their businesses, so they are fit for our modern economy, ensuring both jobs and future prosperity are secured, whilst also helping us achieve our net zero ambitions. This funding is exactly what is needed to help us towards those goals.”

So far, £34.8 million of funding has been awarded through the Industrial Energy Transformation Fund, which was first launched in June 2020.

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