UK manufacturers could secure a clean energy dividend worth more than £2 billion by 2035 by phasing out gas usage and scaling up proven energy technologies, according to independent economic modelling published by energy supplier E.ON.

The analysis forms part of E.ON’s ReIndustrial Revolution report, which examines how adoption of lower-carbon technologies can help commercial firms reduce operational costs and enhance competitiveness across global markets.

While the opportunity spans the wider economy, the report highlights manufacturing—a sector contributing £197 billion to UK output and employing over 2.1 million people—as a primary beneficiary of onsite generation, smart energy management, and waste heat recovery.

Regional Industrial Impact

The findings carry distinct relevance for industrial hubs across Northern England, including Yorkshire and the Humber, the North East, Lancashire, and Cumbria, where manufacturing accounts for a significant share of economic output and employment.

Research conducted by independent economic specialists Development Economics modelled four main interventions: energy audits, smart management systems, onsite renewable generation with storage, and waste heat recovery.

Under the highest adoption model, UK manufacturers could reduce annual gas consumption by 15.2 terawatt-hours (TWh) and electricity use by 8.8 TWh by 2035. The study estimates cumulative gas cost savings of £2.1 billion between 2027 and 2035, reaching £406 million annually by 2035.

A survey of over 500 UK business leaders included in the report indicates that 89% expect to invest in energy efficiency or low-carbon technologies within two years. However, 48% identified upfront costs as their main barrier, while 37% cited uncertainty regarding return on investment.

Businesses don’t need to wait for tomorrow’s technology to start seeing the benefits of cleaner, smarter energy. We have the solutions and we have them now. We’re already helping customers to use less, waste less and generate more of their own power – from geothermal heating at Nottingham’s Queen’s Medical Centre, to the UK’s largest roof-mounted solar scheme at the Port of Liverpool, to our Strategic Energy Partnership with Coventry City Council, which is a blueprint to drive the energy transition for communities across the UK.

Energy can be a source of resilience, competitiveness and growth. Removing barriers to investment means more businesses can cut costs, reduce carbon and help build the resilient energy system Britain needs.

Policy Recommendations and Cultural Engagement

To accelerate adoption, the report outlines five policy recommendations for government:

Reduce electricity policy costs: Shift mechanisms such as the Renewables Obligation from industrial electricity bills into general taxation to encourage electrification.

Provide long-term price certainty: Establish a clear policy pathway to narrow the price gap between electricity and gas.

Introduce direct investment incentives: Create a dedicated Business Energy Upgrade Scheme offering advice, grants, and tax incentives.

Reform network charges: Adjust grid balancing and network tariffs to reward businesses for demand flexibility and storage use.

Accelerate grid connections: Speed up local network reinforcement and infrastructure planning decisions.

As part of the initiative, E.ON commissioned York-based artist and illustrator Mark Hearld to collaborate with school pupils in Sheffield, Glasgow, and East London. The resulting collage series reimagines traditional northern industrial landscapes to reflect sustainable generation, including solar installations, biomass energy, and site redevelopments.

Mark Hearld added: “When E.ON asked me to make a series of collages as part of its ReIndustrial Revolution campaign, to celebrate its commitment to sustainable growth and with a nod to the artworks of 19th century industrial revolution, it provided me with a bold visual starting point.

“All growth should be sustainable. E.ON’s campaign is a such a positive initiative. I was excited by the dynamic challenge of showing nature flourishing alongside the architecture of redevelopment and greener energy production. A derelict Mill at Silvertown on the Thames about to be redeveloped sustainably, a biomass power station with a ‘black paper cut’ silhouette rising up from a wildflower meadow alive with oxeye daisies in Sheffield, and finally pigeons roosting on the foreground ridge of a roofscape in Glasgow, with its solar panels and home batteries to make energy costs more me affordable for low income families.

“Children care about the world they live in, and it was a joy to see such creative optimism in the collages they made during our workshops. Similarly, it was huge fun to see the playful inventiveness in their choice of materials. There’s no doubt that their creative engagement has a vital role to play in the future of our world.”