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IETF industrial energy efficiency and decarbonisation studies

Overview:

Organisations can apply for a share of up to £30million for grants to carry out feasibility and engineering studies into energy efficiency and decarbonisation.

This Industrial Energy Transformation Fund (IETF) competition is offering up to £30million, split across two strands, to fund feasibility, engineering studies and deployment.

In this strand projects must undertake a feasibility or an engineering study (experimental development) to develop either an energy efficiency or a deep decarbonisation project that enables possible subsequent deployment.

In this strand, industrial businesses of any size can apply, either on their own or in collaboration with other organisations. The lead applicant must operate at an eligible site in England, Wales or Northern Ireland at which the study is carried out.

The other competition strand, IETF deployment of energy efficiency technologies in industry, will fund projects that deploy energy efficiency technology.

The IETF is a Department for Business, Energy and Industrial Strategy (BEIS) fund. Innovate UK is delivering this competition on behalf of BEIS, which is a joint sponsor. Innovate UK will be sharing all data about your application and project with BEIS. BEIS may contact you to gather IETF evaluation information irrespective of whether your application is successful.

BEIS and Innovate UK will keep under review the impact of the current global disruption on applications to the competition.

Open Date:

20/07/2020

Close Date:

28/10/2020

This strand of the competition aims to:

  • Help industrial companies build a pipeline of future deployment projects by supporting feasibility and engineering studies (experimental development)
  • Reduce the costs and risks of either industrial energy efficiency or decarbonisation technologies

Feasibility studies

If you are carrying out a feasibility study it must:

  • Investigate technologies that improve the energy efficiency or reduce the greenhouse gas emissions of an industrial process
  • Establish whether or not the potential technology is technically and commercially viable

Experimental development (engineering study)

Experimental development projects must be engineering studies. An engineering study is a detailed project plan that identifies specific technical requirements. The final report will be an overall document, summarising many separate studies carried out by different specialists. It is a structured, multi-disciplinary engineering design with the purpose of identifying key project design features and providing a project cost estimate.

Your project must provide sufficient detail to enable the site operator to make a final investment decision.

Innovate UK expect your engineering study to show appropriate consideration of:

  • Technical approach
  • Carbon reduction and other benefits analysis
  • Health and safety
  • Planning and consenting
  • Environmental impacts
  • Economic analysis
  • Project delivery requirements and scheduling
  • Project risks

Portfolio approach

Innovate UK are looking to fund a portfolio of projects.

The ‘portfolio approach’ is intended to make sure the IETF has a diverse set of projects balanced across the following variables:

  • Geographical areas
  • Technologies
  • Industrial sectors
  • Organisation types
  • Project sizes

Monitoring, evaluation and knowledge sharing

You will be required to submit data throughout the project. IETF will use this to evaluate whether your project has achieved the benefits described in your proposal and has contributed to the overall objectives of the fund.

This information may be used to create and maintain a register of grant recipients and publishable project case studies. BEIS or Innovate UK may publish aggregated statistics on the benefits of the IETF.

Specific themes

Both feasibility studies and engineering studies must focus on one of the following.

Energy efficiency

Energy efficiency projects must support technologies that improve the energy efficiency of an industrial process or processes.

These must focus on deployment of technology that has been proven to work through successful operations and/or is qualified through test and demonstration.

You must follow the specific technical requirements.

Deep decarbonisation

Deep decarbonisation projects must result in a significant reduction in the greenhouse gas emissions of an industrial process and may not necessarily have an energy efficiency benefit.

These must focus on the deployment of technology that either:

  • Has been proven to work through successful operations and/or is qualified through test and demonstration

or

  • Is currently at a prototype stage or requires demonstration of an actual system prototype in an operational environment

You must follow the specific technical requirements.

Your project must:

  • Have total eligible project costs of at least £60,000 and last up to 12 months if it is a feasibility study
  • Have total eligible project costs of at least £100,000 and last up to 24 months if it is experimental development
  • Start by 1 October 2021
  • End by 30 September 2023

Under state aid the maximum grant funding amount an organisation can receive is €7.5million for feasibility studies for each project that it is involved with. For experimental development the maximum grant funding amount an organisation can receive is €15million for each project that it is involved with. The currency conversion for this limitation will happen at the point of grant award.

If your study’s total eligible costs exceed £2million, you must inform Innovate UK before submitting an application.

Your project must be carried out for a single manufacturing site or data centre in England, Wales or Northern Ireland. You may include multiple projects within your application, provided they are located at the same site. If you would like to run a similar project at additional sites you will need to submit one application for each site. A site is defined as the postcode, or multiple directly adjoining postcodes as relevant, at which the study takes place.

You must consent to producing a publishable case study for knowledge sharing during your project. It will be made publicly available so should not include any commercially sensitive information.

Lead organisation

To lead a project or work alone your organisation:

  • Must be a business of any size registered in England, Wales or Northern Ireland
  • Must operate at the manufacturing site or data centre in England, Wales or Norther Ireland where the study is carried out
  • Can collaborate with other businesses, research organisations, research and technology organisation (RTO), academic institutions or public sector organisations which must all be registered in England, Wales or Northern Ireland
  • Must carry out its project work in England, Wales or Northern Ireland
  • Must intend to exploit the results in England, Wales or Northern Ireland
  • Cannot be an undertaking in difficulty (see section on state aid)

Find out which definition your organisation falls into.

Academic institutions cannot lead or work alone.

This competition is aimed at specific types of business. These are determined by a code allocated at the time of registering at Companies House, called a standard industrial classification (SIC) code. You will need to check your business SIC code to make sure you are eligible. For this competition your business must be one of these:

  • Manufacturing 10 to 33
  • Data centres 63110

A third party (for example, a consultancy or an energy service company) can prepare an application on behalf of the lead applicant. However, Innovate UK will not have a legal relationship with or pay money to a third party.

Project team

To collaborate with the lead your organisation must:

  • Be a business of any size, a research organisation, a research and technology organisation (RTO), an academic institution or a public sector organisation
  • Be registered in England, Wales or Northern Ireland
  • Carry out its project work in England, Wales or Northern Ireland
  • Intend to exploit the results in England, Wales or Northern Ireland

The lead must claim funding by entering their costs during the application. If the lead is collaborating with other organisations then the lead and at least one other partner must claim grant funding and enter their costs into the Innovation Funding Service.

Each partner organisation must be invited into the Innovation Funding Service by the lead to collaborate on a project. Partners must enter their own project costs into the Innovation Funding Service.

Your project can include partners that do not receive any of this competition’s funding, for example non-UK businesses. Their costs will count towards the total eligible project costs.

Subcontractors

Subcontractors are allowed in this competition and can be from anywhere in the world. Innovate UK would expect subcontractor costs to be justified and appropriate to the total eligible project costs.

You must make sure they are sufficiently qualified for their role.

Innovate UK have allocated up to £30million to fund projects across two competition strands:

The majority of the funding will be used in the deployment strand.

This competition provides state aid funding under article 25, ‘Aid for research and development projects’, of the General Block Exemption Regulation (GBER). It is your responsibility to make sure your organisation is eligible to receive state aid. You must not claim funding from any other state aid source for this project if this would result in the aid amount permitted by the GBER being exceeded.

If your organisation’s work on the project is mostly commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically.

Research organisations

Any research organisations in your project team undertaking non-economic activity as part of the study can share up to 30% of the total eligible costs. If your project team contains more than one research organisation undertaking non-economic activity, this maximum is shared between them.

Feasibility studies

Under Article 25, the maximum grant funding amount an organisation can receive is €7.5million for each project it is involved with.

For feasibility studies, you could receive funding for your eligible costs of:

  • Up to 70% if you are a micro or small organisation
  • Up to 60% if you are a medium-sized organisation
  • Up to 50% if you are a large organisation

Experimental development (for an engineering study)

Under Article 25, the maximum grant funding amount an organisation can receive is €15million for each project it is involved with.

For experimental development projects you could receive funding for your eligible costs of:

  • Up to 45% if you are a micro or small organisation
  • Up to 35% if you are a medium-sized organisation
  • Up to 25% if you are a large organisation

If your experimental development project qualifies as an ‘effective collaboration’ or widely disseminates knowledge, you could receive funding for your eligible costs of:

  • Up to 60% if you are a micro or small organisation
  • Up to 50% if you are a medium-sized organisation
  • Up to 40% if you are a large organisation

Read the definitions of different organisation sizes.

Effective collaboration and wide dissemination

Innovate UK are expecting collaborative experimental development projects. ‘Effective collaboration’ means collaboration between at least two independent parties. The goal must be either:

  • To exchange knowledge or technology

or

  • To achieve a common objective based on the division of labour where the parties jointly define the scope of the collaborative project, contribute to its implementation and share its risks, as well as its results

Contract research and provision of research services are not considered forms of collaboration.

For effective collaboration to apply between businesses no one business partner can take more than 70% of the total eligible project costs. For collaborations between businesses and research organisations, the research organisation must bear at least 10% of the total eligible project costs and have the right to publish its own research.

Innovate UK are not funding:

  • Repair and maintenance projects that would be undertaken in the normal course of business
  • Plant closure projects
  • Energy efficiency measures in transport, lighting, or building heating and cooling
  • Electricity generation, such as solar, wind, combined heat and power without fuel switching
  • CO2 transportation and long term storage solutions
  • Direct air capture technologies
  • Option analysis or trade studies

Cresco Innovation works with companies to develop and implement innovation strategies. We help client companies identify opportunities to develop new products and services, and then create a package of support to ensure that the idea is turned into a commercial reality.

Our services include securing grants (as a team we have raised around £40million over three years), business planning, IP advice, access to finance and funders, project management and IP commercialisation support.

We regularly act as the interface with the funding bodies and help clients ensure that their projects are properly managed to ensure the best outcome for all.

Call to find out more

If you’d like to know more about this competition, please give us a call on 01509 261182 and one of our team will be delighted to help you access this funding opportunity for your business.