Clean Growth Grand Challenge Industrial Clusters mission We will establish the world’s first net-zero carbon industrial cluster by 2040 and at least one low-carbon cluster by 2030 Lindsey Hibberd – Lindsey.Hibberd@beis.gov.uk Charlie Lewis – Charlie.Lewis@beis.gov.uk David Hytch - David.Hytch@innovateuk.ukri.org

Industrial Strategy The aim of the Industrial Strategy is to boost productivity by backing businesses to create good jobs and increase the earning power of people throughout the UK with investment in skills, industries and infrastructure. Grand Challenges

Clean Growth Grand Challenge Aim to position the UK at the forefront of the low carbon technologies, systems and services that will be needed globally to address climate change

Clean Growth Grand Challenge UK strengths ​ Already significant numbers of jobs in low carbon businesses and supply chains ​ World-leading expertise in offshore wind, smart systems, green finance, automotive​ View as a future source of jobs and exports Look to match innovation investment with market creation – key areas of focus:​ Develop smart systems for cheap and clean energy across power, heating and transport​ Make the UK the global standard-setter for finance that supports clean growth​ Develop UK leadership in low carbon transport​ Transform construction techniques to dramatically improve efficiency​ Make our energy-intensive industries competitive in the clean economy​ Industrial Strategy seen significant further investment in R&D/Innovation approaching another £500m​

Industrial Clusters mission ​We will establish the world’s first net-zero carbon industrial cluster by 2040 and at least one low-carbon cluster by 2030 This will be achieved by: Reducing emissions in one cluster to net-zero by 2040. In at least one cluster, by 2030: The low-carbon infrastructure needed to support industrial decarbonisation will be in place and operational, attracting new investment and innovation. Multiple industrial facilities will already have reduced their emissions, by the greatest possible extent. Harnessing the power of markets, the public sector, and consumers to drive demand for low carbon, low cost manufacturing products.

Key elements of the mission Seeking transformative change as part of a low carbon future A collaboration between Government, Industry and Academia Demonstrating new technologies at scale (technology neutral) Considering new approaches & business models Attracting inward investment Maximising the benefits for the local area in terms of business opportunities, jobs and environment Creating an exemplar that is replicable by others Creating export opportunities

ISCF Wave 3 - Industrial decarbonisation Up to £170 million – subject to business case and industry match funding ISCF is technology agnostic: but born out of proposals around CCUS, hydrogen, fuel cells and biotech ~3/4 of ISCF funding to be used for at-scale demonstration of carbon reducing technologies within a cluster or clusters. Multi-disciplinary research programme to support the projects, disseminate and crucially inform policy development with building an evidence base Some funding to supporting clusters at an earlier stage with what decarbonisation looks like for their industries, geography and location. Timing Discussions around industry match funding need to be finished by the end of February 2019 Business cases are submitted for approval in early May 2019 Looking to open competitions in late summer 2019 Projects to start from beginning of 2020

Questions for discussion Are you interested in being part of the mission? How has cluster decarbonisation been considered to date? What investment and planning is being undertaken in the local area, are there projects that relate to decarbonisation? If your operations are international, how do investments in decarbonisation in the UK compare to other countries? What assurances would you need to match fund the ISCF investment?