A new £40 million government fund has been announced to drive down emissions and reduce energy bills of carbon-intensive businesses.

The investment is expected to help polluting industries including steel, pharmaceuticals, paper, food and drink to find new ways to reduce their carbon emissions.

Measures including heat recovery and hydrogen technologies are set to benefit from the grant.

The minimum grant has been lowered to £100,000 for deployment projects, offering more flexibility for small businesses to receive funding so they can speed up getting their ideas to market.

Energy Minister Anne-Marie Trevelyan said: “We can only achieve our ambitious plans to tackle climate change if everyone plays their part, including businesses large and small.

“That’s why our £40 million investment will not only help some of the highest polluting industries like steel, paper and pharmaceuticals build back greener by finding innovative ways to reduce their carbon emissions but will also create more opportunities for growth and jobs by levelling up and making industry fit for the future.”