Competition Scope & Funding
Dr Sarah Connolly
Innovation Technologist
Transforming Foundation Industries
Innovate UK

Introduction to Innovate UK
and UKRI

We work with the government
to invest over £7 billion a year
in research and innovation by
partnering with academia and
industry to make the impossible,
possible.
Through the UK’s nine leading
academic and industrial funding
councils, we create knowledge
with impact.
UK Research and Innovation

Innovate UK drives productivity and
economic growth by supporting
businesses to develop new ideas.
We connect businesses to the people
that can help them, and fund businesses
and research collaborations in all
economic sectors, value chains and
UK regions to accelerate innovation.
Innovate UK

Innovation is the key to UK’s future growth
and prosperity
• UK ranks 5th in Global Innovation Index
• Innovation accounts for up to 50% of
labour productivity growth
• Firms that persistently invest in R&D
have higher productivity
• Innovating companies are more likely
to export and generate growth

Innovate UK core grant funding to nations and regions
Core Grant Funding FY 2018/2019
*Per Business, based on BEIS business population estimate 2019

Scope

The Foundation Industries
Include ceramic, glass, cement, metals, paper, and
chemicals.
Worth £45bn to the UK and employ 500,000 people,
mostly outside the south east in areas of deprivation.
Challenges:
• by far the largest industrial polluter, generating
10% of all UK’s CO2 emissions
• capital intensive making it difficult change and
compete with new plant from the developing world.

Transforming Foundation
Industries
Transforming Foundation
Industries
Activities • Accelerate innovation
• Pilot Scale facilities
• CR&D
• Development of the foundation industry as a sector
• Develop closer academic/industry links
• Accelerate growth of new technology and fast-growing businesses
TFI Challenge
To transform our Foundation Industries so that they are internationally
competitive in manufacturing products vital for our economy in an
environmentally sustainable way.

£66m of Government Funding and
£83m from other sources
£21m partnership with private equity for SMEs and startups.
£
£4m to support academics, business and government work together
and solve common challenges.
£10m multidisciplinary academic research hub.
£60m collaborative research and development programme.
£54m pilot scale facility for the glass sector.

Sep 2018 - Sep 2019
Deep dive workshops,
consultations and
shaping events
28th October 2019 – 5th
February 2020
Fast Start Competition Open
3rd August - 4th
November 2020
Resilient recovery
competition open
16th August – 30th
September
Small CR&D
Strands 1 and 2
11th January 2021 –
10th March 2021
Large CR&D
Competition open
Challenge Background

Transforming Foundation
Industries
Transforming Foundation
Industries
Scope
Transforming Foundation Industries:
Demonstrators EoI
Innovate UK, part of UK Research and Innovation, will invest up to £14
million from the Transforming Foundation Industries Programme to support
projects that demonstrate innovation at an industrial scale.
The aim of this competition is to fund research and development projects that
demonstrate future technologies, capable of addressing the resource or
energy efficiency challenges of the UK’s Foundation Industries. These will be
cross-sector, collaborative, demonstrations projects. Your proposal must
include significant industry investment.
This is stage 1 of a 2-stage competition:
• Demonstrators - Expression of interest (EoI): this stage
• Demonstrators - Full stage: This will be by invitation only to
applicants who are successful in the EoI stage.

Transforming Foundation
Industries
Transforming Foundation
Industries
Scope
Transforming Foundation Industries:
Demonstrators EoI Stage
Your EoI proposal must support a future demonstration of an innovation at an
industrially relevant scale, which will develop either:
• pipeline technologies to reduce deployment risk and accelerate take-
up across industries, largely by reducing payback time
• new technologies that, when deployed, would create a step-change in
energy and resource efficiency
Projects must align to one of these technology themes:
• Energy Efficiency (process efficiency, heat recovery)
• Resource Efficiency (waste utilisation, symbiosis, design for CE)
• Sensors, Controls and Digitalisation (for resource / energy efficiency)
• Other energy / resource efficiency (including innovative business models,
new products, new processes)
In applying to this competition, you are entering into a competitive process.
This competition closes at 11am UK time on the 1st December.

Transforming Foundation
Industries
Transforming Foundation
Industries
Scope
Transforming Foundation Industries:
Demonstrators EoI Full Stage
For the full stage competition, your project will need to:
• be collaborative and cross-sector, including a minimum of two foundation
industries (cement, glass, ceramics, paper, metals and chemicals)
• demonstrate future technologies at an industrially relevant scale
• include significant industry investment
• improve the sustainability of the foundation industries
• align to the Transforming foundation industries challenge aims
If invited to the full stage competition, your project must be an experimental
development project, as defined in the guidance on categories of research.
You can include some aspects of industrial research, but you will need to
clearly describe where the project crosses over from one research category to
the next. You will need to indicate which research category each work
package falls under.
Research
Categories

Transforming Foundation
Industries
Transforming Foundation
Industries
Scope
Transforming Foundation Industries:
Demonstrators EoI and Full Stage
We are not funding projects that:
• focus on fuel switching or greenhouse gas capture technology
• do not focus on foundation industries and their immediate supply chains
• respond only to the skills needs of foundation industries
• are mainly capital or infrastructure projects
• have grants exceeding 50% of the total project size

Transforming Foundation
Industries
Transforming Foundation
Industries
Eligibility
Transforming Foundation Industries:
Demonstrators Full Stage
For the full stage applications, your project must:
• request a minimum grant of £2.5 million
• request a maximum grant of £3.5 million
• start by 1 August 2022, end by 31 July 2024
• last between 18 - 24 months
Projects must be collaborative and contain a demonstration of innovative
technology at an industrially relevant scale. Consortia must contain a minimum
of two foundation industries (cement, glass, ceramics, paper, metals and
chemicals), and have at least one SME.
Because we are looking to encourage large scale projects, there is no maximum
limit for your total eligible project costs but your grant must be a maximum of
50% of the total project size. Assuming the quality threshold for projects is met
for the technical and market based questions, projects showing good value for
money against the grant costs will be prioritised.

Transforming Foundation
Industries
Transforming Foundation
Industries
Eligibility LEAD ORGANISATION
To lead a project your organisation must:
• be a UK registered business of any size or a research and technology organisation
(RTO)
• collaborate with other UK registered businesses, academic institution, charity, not-
for-profit, public sector organisation or research and technology organisation (RTO)
• carry out its project work in the UK
• intend to exploit the results from or in the UK
Academic institutions cannot lead a project.
If an RTO is the lead organisation, they must collaborate with at least two businesses
(one SME, and one other business of any size).

Transforming Foundation
Industries
Transforming Foundation
Industries
Eligibility PROJECT TEAM
To collaborate with the lead, your organisation must:
• be a UK registered business, academic institution, charity, not-for-profit, public sector
organisation or research and technology organisation (RTO)
• carry out its project work in the UK
• intend to exploit the results from or in the UK
The lead and at least one other organisation must claim funding by entering their costs
during the application.
Each partner organisation must be invited into the Innovation Funding Service by the
lead to collaborate on a project. Once accepted, partners will be asked to login or to
create an account and 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 and value for money against the total grant awarded.

Transforming Foundation
Industries
Transforming Foundation
Industries
Funding
Due to the unique nature of these projects, we are expecting predominantly
experimental development projects, with some aspects of industrial research. Each work
package must be assigned a research category and the grant claimed for that work align
with the guidance:
For work that falls under industrial research, planned research or critical investigation to
gain new knowledge and skills, you could get 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
For experimental development projects which are nearer to market, you could get
funding for your eligible project 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
At the full stage, we may consider the purchase of capital equipment as an eligible
project cost in large-scale commercial demonstration projects.
This capital purchase would be allowed only if they enable more energy efficient
processing or more efficient recycling or re-use activities. You should get in touch with
the Challenge team for clarity on the eligibility of your proposed capital costs.

Transforming Foundation
Industries
Transforming Foundation
Industries
EoIs
Transforming Foundation Industries:
Demonstrators EoI
Your EoI application must outline your intentions for a full stage project
including:
• the project idea or technology being demonstrated
• the market for this demonstration
• the anticipated project consortium, which must contain a minimum of two
foundation industries partners
• how the project will meet the minimum project size of £5m and include
significant industry investment
EoIs are open to single applicants only, and you must use the project
consortium question to outline all partners.
We aim to fund a portfolio of projects, across a variety of:
• industries
• technologies
• markets

Transforming Foundation
Industries
Transforming Foundation
Industries
EoIs
Transforming Foundation Industries:
Demonstrators EoI
If successful at the EoI stage, each project lead is eligible to claim £15,000 to
complete background data gathering projects that will support the full stage
application. We have allocated £180,000 and expect to take 12 applications
through to the second stage.
If you choose to claim funding, your project must:
• have project costs and claim grant funding of £15,000 under special
drawing rights (SDR)
• start on 1 February 2022, end by 31 March 2022
• last between 1 to 2 months
• carry out its project work in the UK
• intend to exploit the results from or in the UK
You can choose not to claim any grant funding for your costs which will not
affect your assessment or invitation to the full stage. If you are not claiming
any funding, your EoI application must be submitted with a zero grant request.

Transforming Foundation
Industries
Transforming Foundation
Industries
EoIs
Transforming Foundation Industries:
Demonstrators EoI
The lead organisation for this EoI stage, does not have to lead the next full
stage application. If your project is invited, another eligible member of the
proposed consortium can lead. You should outline in your team question who
will be leading the full stage application.
A business, or RTO can lead up to two EoI applications, but can only lead on
one full stage application.

Demo Timeline
Pre-launch EoI Full Stage Applications
May
21
Jun
21
Jul
21
Aug
21
Sep
21
Oct
21
Nov
21
Dec
21
Jan
22
Feb
22
Mar
22
Apr
22
May
22
Jun
22
Jul
22
Themed Events
3
Encourage Collaboration
1
Direct Support
4
Technology Themes
30
Expected Expression of
Interests
12
Full Stage Applications
4
Funded Projects
Short Expression of Interest

Competition Eligibility Criteria
& Application Process
Dawn Manser
Portfolio Manager
Innovate UK

Eligibility criteria

Previously submitted application Not a previously submitted application
A previously submitted application is:
an application Innovate UK judges as not
materially different from one you've submitted
before (but it can be updated based on the
assessors' feedback)
A brand-new application/project/idea that you have not
previously submitted into an Innovate UK competition
OR
A previously submitted or ineligible application which:
ü has been updated based on assessor feedback
ü and is materially different from the application
submitted before
ü and fits with the scope of this competition
Previously submitted applications
This competition does allow you to submit a previously submitted application.

Project eligibility
ü Lead must be a UK registered business of any size or research and
technology organisation (RTO)
ü You must carry out your project in the UK
ü Exploit the results from / in the UK
Project length Start on the 1st February 2022 and end by 31st March 2022
Eligibility criteria

• Business – Small/Micro, Medium or Large registered in the UK
• Research Organisation (RO):
• Universities (HEIs)
• Non profit distributing Research & Technology Organisation (RTO) including Catapults
• Public Sector Research Establishments (PSRE)
• Research Council Institutes (RCI)
• Public sector organisations and charities doing research activity
• If you are 100% owned by a large parent company as a small subsidiary this means you are classed as a
large company and will only be entitled to the relevant grant. For more information on company sizes, please
refer to the Company accounts guidance.
Types of organisations we fund

Compliance with the UK Subsidy Control Regime
On 1 January 2021, the UK left the EU and is no longer subject to EU laws on State aid. We draw your attention to the guidance issued by
BEIS: Complying with the UK’s international obligations on subsidy control: guidance for public authorities. Please be aware this is a living
document and may be updated by BEIS as time progresses.
The set rules (typically GBER) which we previously relied on for the limits of what we could award, have now been replaced by internal
decisions based on the new BEIS Subsidy Control Regime, and on policy, which will in turn set out bespoke eligibility requirements for each
funding opportunity.
Innovate UK is offering funding for this competition in line with the UK's obligations and commitments to Subsidy Control. To ensure that
Innovate UK remains compliant with the UK’s international Subsidy Control duties in respect of:
• The EU-UK Trade and Cooperation Agreement;
• Article 10 of the Northern Ireland Protocol: (successful applicants which are affected by the Northern Ireland Protocol will
be funded in line with EU State aid regulations)
• Article 138 of the Withdrawal Agreement (some Union law applicable after 31 December 2020 in relation to the UK’s
participation in Union programmes and activities)
• The Subsidies and Countervailing measures within the WTO (ASCM);
• Any other Free Trade Agreements active at the time of award.
All awards will be conditional on compliance at all times with the UK Subsidy Control Regime
– this will be reflected in the terms and conditions of any award

Due diligence for UK Subsidy Control Regime
Under the Subsidy Control Regime, we will carry out financial health checks and going concern assurances on your
organisation.
Certify you are eligible
When submitting an application, you must certify that you are eligible for funding. If you are unsure, please take independent legal advice
before applying. Should you be successful, we will complete these financial checks and assurances before confirming the grant offer.
For more information on company sizes, please refer to the Company accounts guidance.
Further information is available on our website in the general guidance

Eligibility Criteria - EU State Aid Regulations – Northern
Ireland Protocol
If you are an applicant who is conducting activities that will affect trade of goods and/or electricity between Northern Ireland and the EU as
envisaged by Article 10 of the Northern Ireland protocol, then you must apply under European Commission State aid rules.
Undertaking in Difficulty
For applicants subject to the European Commission State aid rules, you will be required to prove that they were not an “Undertaking in Difficulty”
(UiD) on the date of 31 December 2019 but became a UID between 1 January 2020 and 30 June 2021. We will ask for evidence of this.
This test applies to:
• companies that are more than 3 years old
• companies where more than half of its subscribed share capital has disappeared as a result of accumulated losses.
• your parent or holding company
Certify you are eligible
When submitting an application, you must certify that you are eligible for State aid. If you are unsure, please take legal advice before applying.
Should you be successful, we will apply this test as part of our viability checks before confirming the grant offer.
Further information is available on our website in the general guidance under state aid
If you are applying for an award funded under State aid Regulations, the definitions are set out in the European Commission Recommendation of
6 May 2003.

Eligibility Criteria: Funding Opportunities
Funding for R&D projects split in to 3 categories; Feasibility studies, Industrial research & Experimental development. Only
2 are applicable for this competition.
For industrial research projects, you could get funding for your eligible project 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
For experimental development projects which are nearer to market, you could get funding for your eligible project
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
For general guidance on what our research categories are please visit:
https://www.gov.uk/guidance/innovation-apply-for-a-funding-award#categories-of-research-and-development

Making more than one application
• Any one business may only be the lead partner in two EOI applications but can only lead in one full
stage application. If they are leading an application, they may be involved in up to 3 applications to this
competition
• Any one research and technology organisation may only be the lead partner in two EOI applications but
can only lead in one full stage application. If they are leading an application, they may be involved in up
to 3 applications to this competition
• If a research and technology organisation is not the lead on any application, they can be a partner in
any number of applications
• The lead organisation for this EoI stage, does not have to lead the next full stage application. If your
project is invited, another eligible member of the proposed consortium can lead.

Other Innovate UK projects
• If you have an outstanding final claim and/or Independent Accountant Report (IAR) on a live
Innovate UK project, you will not be eligible to apply for grant funding in this competition, as a
lead or a partner organisation
• If you applied to a previous competition as the lead or sole company and were awarded funding
by Innovate UK, but did not make a substantial effort to exploit that award, we will award no more
funding to you
• If you applied to a previous competition as the lead or sole company and failed to comply with
grant terms and conditions

Timeline Dates
Competition Opens 11th October 2021
Briefing Event 12th October 2021
Submission Deadline 1st December 2021
Applicants informed 17th December 2021
Key Dates

Innovation Funding Service
(IFS)

Search for a funding competition and review criteria

Lead Applicant: create an
account
The Lead applicant must create an account:
UK registered businesses - Use Companies House
lookup as it speeds up our checks by providing your
company number. You are unable to enter this at a
later date
Research organisations, academics &
Universities - Enter your information manually so
you’re not listed as a business on IFS and ensure you
receive the correct funding

Project Details
Application Team – Collaborators can invite organisations who you are working with on the project. Contributors can invite
colleagues from your own organisation to help you complete your application
Application Details - Title, Timescales, Research Category, Innovation Area & previously submitted application (y/n)
Subsidy basis – Will the project, including any related activities, you want Innovate UK to fund, affect trade between Northern Ireland
and the EU? All participants must complete this section.
Equality, Diversity and Inclusion - external survey to complete
Project Summary - Short summary and objectives of the project including what is innovative about it
Public Description - Description of your project which will be published if you are successful
Scope - How does your project align with the scope of this competition? - If your project is not in scope, it will be ineligible for
funding

Application Questions
Detailed guidance available on IFS
Application form Appendix?
Question 1 Application location (not scored) No
Question 2 Special Drawing Rights declaration Yes - mandatory
Question 3 Competition Theme (not scored) No
Question 4 Need or challenge and market awareness No
Question 5 Approach and innovation No
Question 6 Team and resources No
Question 7 Costs and value for money No

Application finances

To claim funding:
Your business does not have to be UK registered with Companies House when you apply but it must be
registered before you can receive funding.
You are unable to claim funding if:
• You are an overseas organisation, so your company number begins with FC
• Your organisation is setup as a branch, so your company number begins with BR
• Your company is based in Jersey, so your company number begins with JE

Other costs
Eligible:
• Costs that could not be added under
previous headings
• Do not double count
• Patent filing costs for new IP – SMEs
up to £7,500

Submitting your application

Editing a submitted application
Reopen by
clicking here
Remember to
press SUBMIT

Submit your application early!
Be aware of the
potential for last
minute technical
issues!

Customer Support Services:
0300 321 4357 (Monday - Friday 9:00am - 11:30am & 2:00pm - 4:30pm)
support@innovateuk.ukri.org
Knowledge Transfer Network:
www.ktn-uk.co.uk
Innovate UK:
https://www.gov.uk/government/organisations/innovate-uk
Contact