The report, Decarbonising Dispersed Industries, slams the government’s one-size-fits-all approach to industrial decarbonisation.
It argues that current policies prioritise big industrial “clusters” while ignoring rural industries that often face higher costs, weaker infrastructure and no clear support.
The study reveals that rural sites – from ceramic kilns in the Midlands to seasonal food processors in East Anglia – are being priced out of the transition.
These businesses face electricity costs up to 14 times higher than gas, made worse by grid constraints and planning delays.
Philip Nicholson, Senior Researcher at ADE Demand and author of the paper, said:
“Rural industrial sites face a unique set of decarbonisation challenges not seen in the major clusters yet they also offer remarkable potential for innovation and resilience. It is essential that these dispersed industries are not left behind in government policy.”
Nicholson’s research identifies five key rural industrial archetypes – based on usage patterns, heat demands and location – and says each one faces structural barriers that current policy fails to address.
Among the solutions proposed are Energy Service Company (ESCO) models, smarter local pricing, and tailored support schemes.
“Targeted interventions, such as ESCO models and pricing reforms are critical to delivering a truly inclusive, nationwide transition to net-zero,” Nicholson added.
The ADE warns that unless these businesses are part of the picture, the nation risks creating a two-tier industrial transition – with big cities decarbonising while rural economies stagnate.
