Hundreds more firms to cut costs and carbon thanks to energy efficiency fund

Richard Parker, Mayor of the West Midlands, has today announced more help for the region’s most energy intensive manufacturers to keep their costs down, cut carbon emissions, and protect jobs. 

The successful Business Energy Advice Service (BEAS) is being extended as part of the Mayor's £290m business support package to accelerate his Growth Plan and new Reindustrialisation Blueprint. 

BEAS is open to applications from manufacturers, having already improved the efficiency of 3,600 factories, offices, pubs and restaurants with free energy audits and match funding for measures such as upgraded specialist equipment and solar panels. 

Together, these companies have saved enough energy to power 80,000 homes for a year – worth around £40m at current prices – while boosting their productivity and sustainability. 

Among them are Dreadnought Tiles, which supports the nation’s house building mission by making 13m clay bricks and roof tiles every year at its factory in Brierley Hill, and Love Joes, which employs 200 people in Aldridge where it makes chicken meals served in hospitals, schools, hotels and restaurants across the country. 

The Mayor said: “Our Business Energy Advice Service has already eased pressure on 3,600 companies like Dreadnought Tiles and Love Joes, helping them manage costs and preserve jobs. Now we’re adding another £18.4m so even more can reap the rewards. 

“Manufacturing is still a massive part of our economy, providing 273,000 jobs – more than one in 10 workers in this region. But these are energy hungry businesses, at the mercy of high and volatile energy costs. That's stifling their competitiveness and stunting their growth. 

“Every pound we help them save is money they can put back into employing local people. Using less energy also means lower emissions, proving that a stronger economy and climate action go hand in hand.” 

With support from BEAS, family-run Dreadnought Tiles has upgraded its kilns and cut the amount of energy it uses by around £100,000 a year and annual carbon emissions by 267 tonnes.

Executive chairman, Alex Patrick-Smith, said: “Support from BEAS enabled us to upgrade kiln insulation and enhance burner performance and this has reduced heat loss and improved our overall fuel efficiency. These changes are delivering meaningful cost and carbon savings, while supporting further investment in decarbonisation and improved productivity. 

“As a 220‑year‑old business employing 67 people, the energy challenges we face have never been greater. This support has been vital in helping us make these necessary but capital‑intensive improvements, and the programme has been clear and accessible, enabling SMEs like us to take positive action.”

Love Joes now has better performing equipment funded through BEAS which is £160,000 a year cheaper to run and cuts carbon emissions by 50 tonnes annually. 

Director Yianno Koumi said: “We run an energy-intensive factory with 24-hour refrigeration, large machinery, and a baseload that never stops.  

“Every kilowatt-hour we strip out of this factory shows up downstream. The savings BEAS delivered freed up capital to reinvest in the next phase of our decarbonisation plan and they reduced the carbon footprint of every public sector kitchen and operator we deliver to. That's the multiplier the West Midlands gets from extending a programme like this.” 

These two companies are part of the West Midlands’ large manufacturing base which means there is a higher proportion of energy exposed businesses here than in any other UK region. 

Helping this important sector become more energy efficient is a key component of the West Midlands Reindustrialisation Blueprint. Launched by the Mayor last month, it sets out how the region intends to help manufacturing companies scale up and employ more people. 

To qualify for support, businesses must either have annual energy consumption of at least 25,000 kWh and gas and electricity costs that represent more than six per cent of annual turnover or have total annual energy consumption greater than 0.5 GWh. 

Those eligible receive a free energy efficiency audit leading to an opportunity to secure up to £100,000 of match funding to implement recommended measures. 

These could include supporting investment in new machinery and equipment, improved manufacturing processes, or LED lighting, solar power, heat pumps, and insulation. 

The Business Energy Advice Service is being delivered across the whole region by the West Midlands Combined Authority (WMCA) in partnership with Birmingham City Council and Coventry City Council. 

Business based across the region can apply on the Business Growth West Midlands website.