In the March 2006 Budget, the Chancellor stated:
“After discussions with some of the world's biggest energy companies, they have agreed to work in partnership to create, for Britain, a new energy and environmental research institute, and for it to become, for Britain, at the cutting edge of science and engineering.”
This marked the birth of the Energy Technologies Institute.
The Department of Trade and Industry announced that it was prepared to provide matched funding of up to £500 million, creating the potential for a £1.1 billion Institute over 10 years.
The ETI Prospectus in September 2006 stated that it aimed to:
- Increase the level of funding devoted to R&D to meet the UK’s energy goals both domestically and internationally
- Deliver R&D that facilitates the rapid deployment of cost effective low carbon energy technologies. Exceptionally, this may include small demonstration projects
- Provide better strategic focus for commercially applicable energy-related R&D in the UK
- Connect and manage networks of the best scientists and engineers both within the UK and overseas, to deliver focused energy R&D projects to accelerate eventual deployment
- Build R&D capacity in the UK in the relevant technical disciplines to deliver UK energy policy goals.
The Energy Research Partnership, under the joint chairmanship of Paul Golby, Chief Executive of E.ON UK, and Sir David King, Government Chief Scientific Adviser and Head of the Government Office for Science, committed itself to raising substantial sums of private investment to meet the matching funding available. EDF Energy, Shell, BP and E.ON UK announced their intention to be involved and they were soon joined by Caterpillar and Rolls-Royce. Each Industry Member commits up to £5M/year to the ETI. Discussions continue to recruit other private sector organisations as members, to help realise the Institute’s full potential.