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ISCF Industrial Decarbonisation
Challenge (IDC)
Briefing Webinar – 29th October 2019
Agenda
• 9:35am Introduction to IDC
programme & Industrial Clusters
Mission
Bryony Livesey – ISCF IDC Interim Challenge Director
• 10:00am Introduction to the
Deployment & Roadmap
Competitions
Bryony Livesey – ISCF IDC Interim Challenge Director
• 11:00am Competition process – IFS
Portal Isobel Finley-Day – UKRI Competitions Team
• 11:55am Role of KTN & Wrap-up
Peter Clark – Innovate UK Knowledge Transfer Network
Introduction to Industrial
Decarbonisation Challenge
Programme & Industrial
Clusters Mission
Dr Bryony Livesey
ISCF IDC Interim Challenge Director
ISCF Wave 3 Challenges
In 2018, we said:
“We will run a third wave of Industrial Strategy
Challenge Fund programmes, with UK
Research and Innovation launching an
expression of interest for potential
challenges.”
• 252 expressions of interest received
• Following a shortlisting process a number were
taken forward to the next stage
ISCF Industrial Decarbonisation Challenge
• The Industrial Decarbonisation ISCF challenge will be investing up to
£170m, delivered by Innovate UK and EPSRC, on behalf of UKRI.
• This challenge aims to accelerate the cost-effective decarbonisation of
industry by developing and deploying low-carbon technologies. It also
aims to enable the deployment of infrastructure at scale by the mid-
2020s.
• It will support delivery of the Clean Growth Grand Challenge and the
Industrial Clusters Mission.
Context of the Challenge –
Government Mission Alignment
“Accelerate the cost-effective decarbonisation of
industry by developing and deploying low carbon
technologies and enabling infrastructure at scale
in one or more clusters by the mid-2030s. This will
boost the competitiveness of key industrial regions
and drive inward investment, creating and protecting
jobs for a low carbon global economy.”
The Industrial Decarbonisation
Challenge - Mission Statement
Grangemouth
4.3MtCo2
Teesside
3.4MtCo2
Merseyside
3.2MtCo2
SouthWales
9.0MtCo2
Humberside
12.6MtCo2
Southampton
2.7MtCo2
ISCF IDC Delivery
The Industrial Decarbonisation Challenge will be delivered
through three programme strands:
1. Industrial Demonstrators and Shared Infrastructure -
Deployment (£132m, Innovate UK)
2. Cluster Decarbonisation Roadmaps (£8m, Innovate UK)
3. Industrial Decarbonisation Research and Innovation Centre
(£20m, Research Councils, via EPSRC)
Strand 1 (Innovate UK)
Industrial Demonstrators and Shared Infrastructure -
Deployment – £132m grant
Demonstrate and validate cost-effective decarbonisation through at-scale
projects that will implement plans for deep decarbonisation of at least one
industrial cluster:
• FEED (Front End Engineering Design) studies, permits and business
plans
• Core infrastructure in place for further decarbonisation
• Demonstration of cost-effective technology and processes
• Supply chain, jobs and skills creation
Strand 2 (Innovate UK)
Roadmaps – £8m grant
Address technology, infrastructure, policy gap, and business,
regulatory and financing models to overcome barriers to different
2030 decarbonisation and 2040 net-zero options for UK industrial
clusters:
• Business plans for the selected clusters
• Evidence of necessary market and regulatory interventions
• Identification of skills and training needs
• Formation of a broad coalition of support
Strand 3 (Research Councils via EPSRC)
Research and Innovation Centre - £20m
Joint industry/government/academic co-ordination and delivery of supporting multi-
disciplinary research, policy development and communication.
Delivery in 2 stages:
Stage 1) ISCF Industrial Decarbonisation Research and Innovation Centre - Champion call –
Aimed at identifying a Champion for Industrial Decarbonisation and building a
multidisciplinary consortium with six months of funding. (Applications closed 22nd Oct 2019)
Stage 2) ISCF Industrial Decarbonisation Research and Innovation Centre call – Invited
stage for a full proposal for a virtual multidisciplinary research centre. Its remit will include
carrying out multidisciplinary research and cross-cutting activities such as carbon capture
and storage, hydrogen, gasification, policy, economic, institutional and regulatory analysis,
and knowledge exchange. (Proposals due July 2020)
Introduction to the
Deployment & Roadmap
Competitions – Phase 1
Dr Bryony Livesey
Interim Challenge Director
Available Funding
UK businesses can apply for a share of up to £1 million to
prepare plans for their journey to achieving low carbon and net
zero industrial clusters.
The funding is split between 2 streams:
• Decarbonisation of Industrial Clusters: Deployment
• Decarbonisation of Industrial Clusters: Roadmaps
These are Phase 1 of a 2 Phase competition
Phased Competition
• This is the first phase of a 2-phase competition. Phase 2 is dependent on the success of
phase 1.
• Only successful applicants from phase 1 will be invited to take part in phase 2.
• In phase 1 of both competitions you must develop a plan setting out your proposed approach
to phase 2.
Phase 2 - Deployment:
• In phase 2 up to £131 million will be awarded for projects that will deliver, or support delivery of,
significant emissions reductions in a UK industrial cluster by 2030, in line with the Industrial Clusters
Mission.
Phase 2 - Roadmaps:
• In phase 2 up to £8 million will be awarded for the development of industrial cluster decarbonisation
roadmaps for major UK industrial clusters. These must set out how a cluster could be decarbonised to
net-zero levels, in line with the Industrial Clusters Mission.
Eligibility summary
Criteria Deployment Roadmaps
Total eligible project costs £60k to £200k £40k to £120k
Project duration 3 – 4 months
Project end date (latest) 31 July 2020
Project lead • UK Registered business (any size) • UK Registered business (any size)
• Research organisation
• Public sector organisation
• Charity
• Academic Institute
Project team • UK Registered business (any size)
• Research organisation
• Public sector organisation
• Charity
• Academic Institute
• UK Registered business (any size)
• Research organisation
• Public sector organisation
• Charity
• Academic Institute
Collaboration required? Required Preferred but not required
Note - Both streams require:
• Project work to be carried out in the UK
• Project to exploit the results in at least 1 UK cluster
Applications
Multiple Applications:
• Any UK registered business can lead on only one application and collaborate in
any number of further applications.
• Pubic sector organisations, research organisations and academic institutions
can collaborate in any number of applications.
• You can submit an application under either or both of the streams of this
competition
Resubmissions:
• Resubmissions are not accepted as part of this competition.
• A resubmission is a proposal Innovate UK judges as not materially different from
one you've submitted before. It can be updated based on the assessors'
feedback.
• If you submit a new proposal this time you will be able to use it in no more than
one future competition that allows resubmissions.
State AidProjects in both streams of this competition are categorised
as feasibility study projects, therefore you could receive funding for your eligible project costs
of:
• up to 70% if you are a micro or small business
• up to 60% if you are a medium-sized business
• up to 50% if you are a large business
The research or public sector organisations undertaking non-economic activities in your
consortium can share up to 30% of the total eligible project costs. If your consortium
contains more than one research organisation or public sector organisation, this maximum is
shared between them.
This competition provides state aid funding under article 25, ‘standard collaborative research
and development’, of the General Block Exemption Regulation (GBER).
It is your responsibility to make sure that your organisation is eligible to receive state
aid.
Deployment Scope - Phase 1
Your proposal must explain how in phase 1 you will develop a project delivery plan for a
phase 2 project.
The project delivery plan developed in phase 1 must:
• identify match funding sources for phase 2
• demonstrate an understanding of the approach you will take to ensure compliance with
state aid considerations
• identify appropriate stage gates within the project plan
We do not expect construction and operation of technology to be feasible within the
available funding but welcome your proposal if you believe it is strong.
Deployment Scope – Phase 2
The project must deliver, or support delivery of, significant emissions reductions in a UK industrial
cluster by 2030, in line with the Industrial Clusters Mission. We expect all phase 2 projects to include
a mix of:
• engineering designs
• simulations
• commercial arrangements
• impact assessments
• and baseline measurements
Your phase 2 project must also:
• demonstrate economic, environmental and social impact, quantifying these where possible
• engage a wide variety of industries across the cluster
• identify any potential to link to other UK clusters
• identify the route to securing regulatory approvals, such as environmental permits
• detail project risks, risk management and mitigation measures
Roadmaps Scope – Phase 1
Your proposal must explain how in phase 1 you will develop a plan setting out your proposed
approach to phase 2. This phase 1 proposal must:
• demonstrate how you will develop and apply the systems thinking, capability, tools and
evidence required to identify and assess technical, economic, environmental and social needs
and impacts in your cluster decarbonisation roadmap
• demonstrate how you will work with a variety of industries and stakeholders across the cluster
• demonstrate how you will develop methodologies to assess, and evidence on, the feasibility,
costs, benefits, requirements and risks of different 2030 decarbonisation and 2040 net-zero
options for UK industrial clusters
• demonstrate how you will allow for the importance of replicable solutions
• demonstrate how you will consider wider cross-economy decarbonisation choices and
scenarios as part of your roadmap
Roadmaps Scope – Phase 2
Phase 2 is the development of industrial cluster decarbonisation
roadmaps for major UK industrial clusters.
These must set out how a cluster could be developed, in line with the
Industrial Clusters Mission, through the work outlined in Phase 1,
Timeline
Open date 28th October 2019
Briefing events 29th October 2019 &
7th November 2019 (webinars)
Close date 4th December 2019
Applicants notified 31st January 2020
Time lines for both streams of this competition are as follows:
Competition process –
IFS Portal
Isobel Finley-Day
Portfolio Manager
Competitions Team
• Business – Small/Micro, Medium or Large (EU definition) 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
• Check out the EU definition of a business (it may affect the grant you are able to claim)
http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en
• If you are 100% owned by a large parent company as a small subsidiary this means by EU rules you are classed as a large
company and will only be entitled to the relevant grant
Types of organisations we fund
Eligibility for State Aid
• Innovate UK is offering funding for this competition under the General Block Exemption Regulation. This is
available to eligible UK businesses.
• We are unable to grant funding to limited liability companies meeting the condition known as ‘undertakings in
difficulty’.
• This is where more than half of a company’s subscribed share capital has disappeared as a result of
accumulated losses.
• This test only applies to companies that are more than 3 years old.
• If you have a parent company the test can be performed on your parent or holding company.
• 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
State Aid – Article 25
• Funding for R&D projects split in to 3 categories; Feasibility studies, Industrial research & Experimental development.
• Applies to almost all sectors of the economy and has a wide range of eligible costs. Pre-approved state aid covers:
o Aid for research and development and innovation,
o Regional aid
o Aid to SMEs in the form of investment aid, operating aid
and SMEs access to finance,
o Aid for environmental protection,
o Training aid,
o Recruitment and employment aid for disadvantaged
workers or workers with disabilities.
o Aid to make good the damage caused by certain natural
disasters,
o Social aid for transport for residents for remote regions,
o Aid for broadband infrastructures,
o Aid for culture and heritage conservation,
o Aid for sport and multifunctional recreational
infrastructures,
o Aid for local infrastructure.
• Special rules apply to:
o Fisheries, agriculture,
o Companies in difficulty,
o Companies undergoing a state aid recovery order.
• The aim of our State Aid scheme is to:
• optimise the level of funding to business and
• recognise the importance of research base to project
• At least 70% of total eligible project costs must be incurred by business
• The maximum level (30% of project costs) is shared by all research organisations in the project
Participation Rules
In all collaborative projects there must be:
• at least two organisations claiming grant within the application (including the lead)
• a business or RTO-led consortium – depending on which stream you apply to, which may
involve both business and the research base and
• evidence of effective collaboration
• we would expect to see the structure and rationale of the collaboration described in the
application.
What is collaboration?
Making more than one application
Deployment:
• Any one business can be the lead partner in one application
• Research and technology organisations can not lead but can be a partner in any number of
applications
Roadmaps:
• Any one UK lead, RTO, academic or charity can lead
• Research and technology organisations can be a partner in any number of applications
You can submit an application to one or both streams of this competition
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.
Innovation Funding
Service (IFS)
Innovation Funding Service users
Search for a funding competition and
review criteria
Applicant: create an account
To create your account:
UK based businesses - Use Companies House
lookup as it speeds up our checks by providing your
company number and your are unable to enter it 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: Invite organisations who you are working with on the project
- Contributors: Invite colleagues from your own organisation to help you complete your application
• Application Details
- Title, Timescales, Research Category & Innovation Area
• 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 form
Question 1 Project description
Question 2 Approach to industrial cluster decarbonisation
Question 3 Cluster needs
Question 4 Short-term outcomes and impacts
Question 5 Team and resources
Question 6 Project Plan
Question 7 Project management
Question 8 Risks and risk management
Question 9 Added value
Question 10 Costs and value for money
Appendix Q5
Appendix Q7
Appendix Q8
Appendix Q2
Application Questions - Deployment
Detailed Guidance
Available on IFS
Appendix Q6
Application form
Question 1 Project description
Question 2 Approach to development of an industrial cluster
roadmap
Question 3 Project challenges and opportunities
Question 4 Outcomes and impacts
Question 5 Evidence and capabilities
Question 6 Team and resources
Question 7 Project management
Question 8 Risks and risk management
Question 9 Added value
Question 10 Costs and value for money
Appendix Q7
Appendix Q8
Application Questions - Roadmaps
Detailed Guidance
Available on IFS
Worked example – £500k total cost project:
Project costs for 5 partners (2 SME, 1 University, a Catapult and 1 large), doing industrial research.
Consortium example
Total Eligible
Project Costs
Maximum % of
eligible costs which
may be claimed as
a grant
Innovate UK
Grant
Project
Contribution
Business Medium £130,000 60% £78,000 £52,000
Business Medium £90,000 60% £54,000 £36,000
Business Large £130,000 50% £65,000 £65,000
University HEI (80% FEC) £75,000 100% £75,000 nil**
Catapult RTO £75,000 100% £75,000 nil
Total £500,000 £347,000 £153,000
** 20% FEC not to be shown as a contribution
Research Base Costs £150,000
Research base % of Total Eligible costs 30.00%
Academic partners
Why Je-S?
• We use the Research Councils’ Joint Electronic Submission System (Je-S) to collect academic
finances
• The Je-S system automates the collection of Full Economic Costs (FEC) based costs from academic
partners and tells them exactly what numbers should be used in the application form for their costs
• Also to collect project finance details from non-HEIs (e.g. RTOs) that are claiming they are carrying
out academic quality work and want to be funded on an FEC basis
• Using Je-S means that Innovate UK follows standard Research Council guidelines on funding
universities and enables Research Councils to easily co-fund Innovate UK projects
• Enter the TSB reference number here
• Enter the TSB Contribution column figures
from your J-eS output document into the
project costs section of the application
• Upload the Je-S with council status form
as a PDF at the bottom of the screen
Project costs – academic partners
Je-S application elements
Not just the financials
• E.g. Justification of resources
• E.g Pathways to impact
Full details on the Je-S system
Queries about Je-S via the Je-S Helpdesk
• JeSHelp@rcuk.ac.uk
• 01793 444164
Submitting your
application
Project cost summary
All organisations can see a
summary of project costs
Ensure the highlighted costs
fits the criteria for this
competition
Checking your finances are complete
IFS checks
• all organisations have marked
their finances as complete
• research organisation participation
is no greater than 30% of the total
project costs
Submit your application early!
Be aware of the
potential for last
minute technical
issues!
Assessment
Application assessment
All applications are assessed by independent assessors drawn from industry and academia
What do they look for?
• Clear and concise answers
• The right amount of information
• not too much detail
• no assumptions
• Quantification and justification
• A proposal that presents a viable opportunity for growth, a level of innovation that
necessitates public sector investment and has the right team and approach to be successful
Keep your assessors engaged
and interested in your proposal.
You want them to be fascinated
and excited by your idea!
Note on feedback
• The feedback is compiled using the written comments of the independent assessors who review
and assess the applications.
• It is intended to be constructive in nature and to highlight both the strong as well as the weak
areas of your application.
• Please bear in mind that because applications are assessed by a number of assessors, you may
receive information which appears to be conflicting. This may reflect their different interpretations
of the proposal that you submitted.
• It must also be noted that some proposals may appear to have been favourably assessed based
on their comments, in such instances it could be that your proposal simply fell below the funding
threshold, with others achieving a higher merit score overall.
Scoring
We review scores and feedback to check assessors are adhering to our guidelines and scoring fairly.
In some cases, where we feel a score is unjust and not supported by feedback, we may remove that
score as an outlier and update the total score for the application.
Please be aware that both low and high outliers may be removed and as a result scores may increase
or decrease.
Application assessment
• The score spread shows the difference between the
top and bottom scores
• If score spread is 30 or more we will look to see if an
outlier is apparent
• If there is a 3 or more appear in either the two
columns Count of No Scope or Count of No Recc’d
we review the applications feedback and if justified,
the application will not be eligible for funding.
• The green box = particular assessors scores on an application
• The purple box = set of scores for a particular question
• The red box = at first glance this looks like an outlier
Identifying outliers
Assessor feedback
Project setup for
successful applicants
IFS for successful applicants
Project Set up: 8 steps to complete
• Applicable to all grant claiming partners
• Must be completed within 30 days - projects
must start within 90 days or funding may be
withdrawn
• Confirmation of your bank account is required to
ensure we are paying the correct organisation
you may/will be asked to provide a redacted
bank statement to confirm this
• Project change requests cannot be submitted
before the project starts
Project set up
All grant claiming project partners will be required to complete project set up. To avoid delays you
should consider:
• Who will be the project manager?
• Who will be the finance contact for each consortium member?
• How will your consortium be set up? (if applicable)
Collaboration agreement
Original agreement signed by all participants
Key Features:
• Who is in the consortium?
• What are the aims, and how is the work divided up?
• Ownership of IPR
• Management of consortium
Negotiating a Collaboration Agreement can be complex and time consuming. Start work on this
at an early stage in the process.
Grant claims and payments
• All grants are claimable quarterly in arrears
• Claims can only be made for costs incurred and paid between the project start and end dates
• Claims may be subject to an independent audit (including all academic partners) according to grant size
• Claims are only paid once quarterly reporting and necessary audits are complete
• Projects over 6 months are monitored on a quarterly basis including a visit from the appointed
Monitoring Officer. Anything outside of this will be discussed on a case by case basis.
• The monitoring will be carried out against a detailed project plan and financial forecast
Customer Support Services:
0300 321 4357 (Mon-Fri, 9am-5:30pm)
support@innovateuk.ukri.org
Knowledge Transfer Network:
www.ktn-uk.co.uk
Innovate UK:
https://www.gov.uk/government/organisations/innovate-uk
Q&A
Role of KTN & Wrap Up
Dr Peter Clark
Knowledge Transfer Manager & IDC Lead,
Innovate UK Knowledge Transfer Manager
Fund Connect
Collaborate
The Innovate UK Family
KTN: Accelerating business-led innovation
Partnering
Consortia
building
B-2-B
Grant
Funding
Private
invest-
ment
Accelerating
Business-led
innovation
Funding
Proposal
review
B-2-R
Finding valuable
partners
-
Project consortium
building
-
Supply Chain
Knowledge
-
Driving new
connections
-
Articulating
challenges
-
Finding creative
solutions
Awareness and
dissemination
-
Public and private
finance
-
Advice – project scope
-
Advice – proposal
mentoring
-
Project
follow-up
Promoting
Industry needs
-
Informing policy
makers
-
Informing
strategy
-
Communicating trends
and market drivers
Intelligence on trends
and markets
-
Business Planning
support
-
Success stories /
raising profile
Navigating the
innovation support
landscape
-
Promoting coherent
strategy and approach
-
Engaging wider
stakeholders
-
Curation of innovation
resources
Connecting Supporting NavigatingInfluencingFunding
KTN: Accelerating business-led innovation
• BEIS Industrial Energy Transformation Fund (final consultation underway)
• ISCF Transforming Foundation Industries: Fast Start Projects
• Innovate UK SMART Grant
• Innovate UK Innovation Loan
• KTN assessing decarbonisation innovation landscape (we will be in touch!)
Contact to Peter Jenni or Sheena @ KTN for advice & assistance!
Peter.clark@ktn-uk.org & Jenni.Mcdonnell@ktn-uk.org & Sheena@Hindocha@ktn-uk.org
Other relevant funding streams & activities
Aim: to bring businesses from different foundation industries together to work on common resource and
energy efficiency opportunities.
Consortium must include at least 2 businesses representing at least 2 sectors in the foundation
industries (cement, glass, ceramics, paper, metals and bulk chemicals). Fuel switching or technologies for
the capture of emissions (e.g. CCS) is excluded.
Current competition open: 28 Oct 2019; Current competition close: 5 Feb 2020 12:00pm
Projects can focus on any part of the manufacturing process, including: feedstock inputs; production;
material product development
Project’s total eligible costs must be between £50,000 and £500,000
https://apply-for-innovation-funding.service.gov.uk/competition/497/overview
ISCF Transforming Foundation Industries:
Fast Start Projects (£5M)
£315M Industrial Energy Transformation Fund
It will provide funding for capital investment in energy efficiency and deep decarbonisation projects
Investment will be guided the objectives to:
• Reduce energy costs and emissions for industry, particularly for energy intensive companies in the near-
term, and
• Bring down costs and risks of deep decarbonisation technologies by demonstrating those technologies,
including in a cluster setting
£315M Industrial Energy Transformation Fund
It proposes to support the following activities:
• Deployment of mature energy efficiency technologies
• Deployment of deep decarbonisation technologies
• Feasibility and Front-End Engineering and Design (FEED) studies
Consultation on final design in Oct 2019: Middlesbrough (30 Oct); Manchester (31 Oct); Glasgow (6 Nov);
Belfast (7 Nov)
Consultation closes: @11:45pm on 21 November 2019
https://ktn-uk.co.uk/news/industrial-energy-transformation-fund-consultation-published
£25M Innovate UK Smart Grants: Oct 2019
• Current competition open: 17 Oct 2019
• Current competition close: 8 Jan 2020 12:00pm
• Project with duration 6-8 months & total eligible project costs £25,000- £500,000 can be single or
collaborative
• Projects with duration 19-36 months & total eligible project costs £25,000 -£2 million must be
collaborative
https://apply-for-innovation-funding.service.gov.uk/competition/446/overview
Searching for ambitious or disruptive R&D innovations that can have a significant impact on the
UK economy
£10M Innovate UK Innovation Loan: Sept 2019
• Targeted at SMEs with highly innovative late stage projects looking at best game changing and/or
disruptive ideas or concepts with clear route to commercialisation & economic impact
• Competition opens: Monday 23 September 2019
• Competition closes: Wednesday 27 November 2019 12:00pm
• £100,000 - £1M Loan to fund your project’s eligible costs :
• Projects must last >5 years and start by May 2020
https://apply-for-innovation-funding.service.gov.uk/competition/456/overview#eligibility
KTN Assessing decarbonisation innovator
landscape
• We want to developing deeper understanding of current UK innovator landscape (TRL 3- 7)
• Focus will be on technologies that will be crucial to help industry achieve Net Zero by 2050
• This will be an opportunity to profile UK innovators working in this space
We will be in touch to ask for your input!
Stay in Touch
• Peter Clark (KTN lead for IDC)
• Peter.clark@ktn-uk.org
https://ktn-uk.co.uk/
Peter Clark (KTN lead for IDC)
Peter.clark@ktn-uk.org
@UKRI_news UK Research and Innovation UK Research and Innovation

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Industrial Strategy Challenge Fund: Industrial Decarbonisation Challenge

  • 1.
  • 2. ISCF Industrial Decarbonisation Challenge (IDC) Briefing Webinar – 29th October 2019
  • 3. Agenda • 9:35am Introduction to IDC programme & Industrial Clusters Mission Bryony Livesey – ISCF IDC Interim Challenge Director • 10:00am Introduction to the Deployment & Roadmap Competitions Bryony Livesey – ISCF IDC Interim Challenge Director • 11:00am Competition process – IFS Portal Isobel Finley-Day – UKRI Competitions Team • 11:55am Role of KTN & Wrap-up Peter Clark – Innovate UK Knowledge Transfer Network
  • 4. Introduction to Industrial Decarbonisation Challenge Programme & Industrial Clusters Mission Dr Bryony Livesey ISCF IDC Interim Challenge Director
  • 5. ISCF Wave 3 Challenges In 2018, we said: “We will run a third wave of Industrial Strategy Challenge Fund programmes, with UK Research and Innovation launching an expression of interest for potential challenges.” • 252 expressions of interest received • Following a shortlisting process a number were taken forward to the next stage
  • 6. ISCF Industrial Decarbonisation Challenge • The Industrial Decarbonisation ISCF challenge will be investing up to £170m, delivered by Innovate UK and EPSRC, on behalf of UKRI. • This challenge aims to accelerate the cost-effective decarbonisation of industry by developing and deploying low-carbon technologies. It also aims to enable the deployment of infrastructure at scale by the mid- 2020s. • It will support delivery of the Clean Growth Grand Challenge and the Industrial Clusters Mission.
  • 7. Context of the Challenge – Government Mission Alignment
  • 8. “Accelerate the cost-effective decarbonisation of industry by developing and deploying low carbon technologies and enabling infrastructure at scale in one or more clusters by the mid-2030s. This will boost the competitiveness of key industrial regions and drive inward investment, creating and protecting jobs for a low carbon global economy.” The Industrial Decarbonisation Challenge - Mission Statement Grangemouth 4.3MtCo2 Teesside 3.4MtCo2 Merseyside 3.2MtCo2 SouthWales 9.0MtCo2 Humberside 12.6MtCo2 Southampton 2.7MtCo2
  • 9. ISCF IDC Delivery The Industrial Decarbonisation Challenge will be delivered through three programme strands: 1. Industrial Demonstrators and Shared Infrastructure - Deployment (£132m, Innovate UK) 2. Cluster Decarbonisation Roadmaps (£8m, Innovate UK) 3. Industrial Decarbonisation Research and Innovation Centre (£20m, Research Councils, via EPSRC)
  • 10. Strand 1 (Innovate UK) Industrial Demonstrators and Shared Infrastructure - Deployment – £132m grant Demonstrate and validate cost-effective decarbonisation through at-scale projects that will implement plans for deep decarbonisation of at least one industrial cluster: • FEED (Front End Engineering Design) studies, permits and business plans • Core infrastructure in place for further decarbonisation • Demonstration of cost-effective technology and processes • Supply chain, jobs and skills creation
  • 11. Strand 2 (Innovate UK) Roadmaps – £8m grant Address technology, infrastructure, policy gap, and business, regulatory and financing models to overcome barriers to different 2030 decarbonisation and 2040 net-zero options for UK industrial clusters: • Business plans for the selected clusters • Evidence of necessary market and regulatory interventions • Identification of skills and training needs • Formation of a broad coalition of support
  • 12. Strand 3 (Research Councils via EPSRC) Research and Innovation Centre - £20m Joint industry/government/academic co-ordination and delivery of supporting multi- disciplinary research, policy development and communication. Delivery in 2 stages: Stage 1) ISCF Industrial Decarbonisation Research and Innovation Centre - Champion call – Aimed at identifying a Champion for Industrial Decarbonisation and building a multidisciplinary consortium with six months of funding. (Applications closed 22nd Oct 2019) Stage 2) ISCF Industrial Decarbonisation Research and Innovation Centre call – Invited stage for a full proposal for a virtual multidisciplinary research centre. Its remit will include carrying out multidisciplinary research and cross-cutting activities such as carbon capture and storage, hydrogen, gasification, policy, economic, institutional and regulatory analysis, and knowledge exchange. (Proposals due July 2020)
  • 13.
  • 14. Introduction to the Deployment & Roadmap Competitions – Phase 1 Dr Bryony Livesey Interim Challenge Director
  • 15. Available Funding UK businesses can apply for a share of up to £1 million to prepare plans for their journey to achieving low carbon and net zero industrial clusters. The funding is split between 2 streams: • Decarbonisation of Industrial Clusters: Deployment • Decarbonisation of Industrial Clusters: Roadmaps These are Phase 1 of a 2 Phase competition
  • 16. Phased Competition • This is the first phase of a 2-phase competition. Phase 2 is dependent on the success of phase 1. • Only successful applicants from phase 1 will be invited to take part in phase 2. • In phase 1 of both competitions you must develop a plan setting out your proposed approach to phase 2. Phase 2 - Deployment: • In phase 2 up to £131 million will be awarded for projects that will deliver, or support delivery of, significant emissions reductions in a UK industrial cluster by 2030, in line with the Industrial Clusters Mission. Phase 2 - Roadmaps: • In phase 2 up to £8 million will be awarded for the development of industrial cluster decarbonisation roadmaps for major UK industrial clusters. These must set out how a cluster could be decarbonised to net-zero levels, in line with the Industrial Clusters Mission.
  • 17. Eligibility summary Criteria Deployment Roadmaps Total eligible project costs £60k to £200k £40k to £120k Project duration 3 – 4 months Project end date (latest) 31 July 2020 Project lead • UK Registered business (any size) • UK Registered business (any size) • Research organisation • Public sector organisation • Charity • Academic Institute Project team • UK Registered business (any size) • Research organisation • Public sector organisation • Charity • Academic Institute • UK Registered business (any size) • Research organisation • Public sector organisation • Charity • Academic Institute Collaboration required? Required Preferred but not required Note - Both streams require: • Project work to be carried out in the UK • Project to exploit the results in at least 1 UK cluster
  • 18. Applications Multiple Applications: • Any UK registered business can lead on only one application and collaborate in any number of further applications. • Pubic sector organisations, research organisations and academic institutions can collaborate in any number of applications. • You can submit an application under either or both of the streams of this competition Resubmissions: • Resubmissions are not accepted as part of this competition. • A resubmission is a proposal Innovate UK judges as not materially different from one you've submitted before. It can be updated based on the assessors' feedback. • If you submit a new proposal this time you will be able to use it in no more than one future competition that allows resubmissions.
  • 19. State AidProjects in both streams of this competition are categorised as feasibility study projects, therefore you could receive funding for your eligible project costs of: • up to 70% if you are a micro or small business • up to 60% if you are a medium-sized business • up to 50% if you are a large business The research or public sector organisations undertaking non-economic activities in your consortium can share up to 30% of the total eligible project costs. If your consortium contains more than one research organisation or public sector organisation, this maximum is shared between them. This competition provides state aid funding under article 25, ‘standard collaborative research and development’, of the General Block Exemption Regulation (GBER). It is your responsibility to make sure that your organisation is eligible to receive state aid.
  • 20. Deployment Scope - Phase 1 Your proposal must explain how in phase 1 you will develop a project delivery plan for a phase 2 project. The project delivery plan developed in phase 1 must: • identify match funding sources for phase 2 • demonstrate an understanding of the approach you will take to ensure compliance with state aid considerations • identify appropriate stage gates within the project plan We do not expect construction and operation of technology to be feasible within the available funding but welcome your proposal if you believe it is strong.
  • 21. Deployment Scope – Phase 2 The project must deliver, or support delivery of, significant emissions reductions in a UK industrial cluster by 2030, in line with the Industrial Clusters Mission. We expect all phase 2 projects to include a mix of: • engineering designs • simulations • commercial arrangements • impact assessments • and baseline measurements Your phase 2 project must also: • demonstrate economic, environmental and social impact, quantifying these where possible • engage a wide variety of industries across the cluster • identify any potential to link to other UK clusters • identify the route to securing regulatory approvals, such as environmental permits • detail project risks, risk management and mitigation measures
  • 22. Roadmaps Scope – Phase 1 Your proposal must explain how in phase 1 you will develop a plan setting out your proposed approach to phase 2. This phase 1 proposal must: • demonstrate how you will develop and apply the systems thinking, capability, tools and evidence required to identify and assess technical, economic, environmental and social needs and impacts in your cluster decarbonisation roadmap • demonstrate how you will work with a variety of industries and stakeholders across the cluster • demonstrate how you will develop methodologies to assess, and evidence on, the feasibility, costs, benefits, requirements and risks of different 2030 decarbonisation and 2040 net-zero options for UK industrial clusters • demonstrate how you will allow for the importance of replicable solutions • demonstrate how you will consider wider cross-economy decarbonisation choices and scenarios as part of your roadmap
  • 23. Roadmaps Scope – Phase 2 Phase 2 is the development of industrial cluster decarbonisation roadmaps for major UK industrial clusters. These must set out how a cluster could be developed, in line with the Industrial Clusters Mission, through the work outlined in Phase 1,
  • 24. Timeline Open date 28th October 2019 Briefing events 29th October 2019 & 7th November 2019 (webinars) Close date 4th December 2019 Applicants notified 31st January 2020 Time lines for both streams of this competition are as follows:
  • 25.
  • 26. Competition process – IFS Portal Isobel Finley-Day Portfolio Manager Competitions Team
  • 27. • Business – Small/Micro, Medium or Large (EU definition) 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 • Check out the EU definition of a business (it may affect the grant you are able to claim) http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en • If you are 100% owned by a large parent company as a small subsidiary this means by EU rules you are classed as a large company and will only be entitled to the relevant grant Types of organisations we fund
  • 28. Eligibility for State Aid • Innovate UK is offering funding for this competition under the General Block Exemption Regulation. This is available to eligible UK businesses. • We are unable to grant funding to limited liability companies meeting the condition known as ‘undertakings in difficulty’. • This is where more than half of a company’s subscribed share capital has disappeared as a result of accumulated losses. • This test only applies to companies that are more than 3 years old. • If you have a parent company the test can be performed on your parent or holding company. • 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
  • 29. State Aid – Article 25 • Funding for R&D projects split in to 3 categories; Feasibility studies, Industrial research & Experimental development. • Applies to almost all sectors of the economy and has a wide range of eligible costs. Pre-approved state aid covers: o Aid for research and development and innovation, o Regional aid o Aid to SMEs in the form of investment aid, operating aid and SMEs access to finance, o Aid for environmental protection, o Training aid, o Recruitment and employment aid for disadvantaged workers or workers with disabilities. o Aid to make good the damage caused by certain natural disasters, o Social aid for transport for residents for remote regions, o Aid for broadband infrastructures, o Aid for culture and heritage conservation, o Aid for sport and multifunctional recreational infrastructures, o Aid for local infrastructure. • Special rules apply to: o Fisheries, agriculture, o Companies in difficulty, o Companies undergoing a state aid recovery order.
  • 30. • The aim of our State Aid scheme is to: • optimise the level of funding to business and • recognise the importance of research base to project • At least 70% of total eligible project costs must be incurred by business • The maximum level (30% of project costs) is shared by all research organisations in the project Participation Rules
  • 31. In all collaborative projects there must be: • at least two organisations claiming grant within the application (including the lead) • a business or RTO-led consortium – depending on which stream you apply to, which may involve both business and the research base and • evidence of effective collaboration • we would expect to see the structure and rationale of the collaboration described in the application. What is collaboration?
  • 32. Making more than one application Deployment: • Any one business can be the lead partner in one application • Research and technology organisations can not lead but can be a partner in any number of applications Roadmaps: • Any one UK lead, RTO, academic or charity can lead • Research and technology organisations can be a partner in any number of applications You can submit an application to one or both streams of this competition
  • 33. 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.
  • 36. Search for a funding competition and review criteria
  • 37. Applicant: create an account To create your account: UK based businesses - Use Companies House lookup as it speeds up our checks by providing your company number and your are unable to enter it 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
  • 38. Project Details • Application Team - Collaborators: Invite organisations who you are working with on the project - Contributors: Invite colleagues from your own organisation to help you complete your application • Application Details - Title, Timescales, Research Category & Innovation Area • 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
  • 39. Application form Question 1 Project description Question 2 Approach to industrial cluster decarbonisation Question 3 Cluster needs Question 4 Short-term outcomes and impacts Question 5 Team and resources Question 6 Project Plan Question 7 Project management Question 8 Risks and risk management Question 9 Added value Question 10 Costs and value for money Appendix Q5 Appendix Q7 Appendix Q8 Appendix Q2 Application Questions - Deployment Detailed Guidance Available on IFS Appendix Q6
  • 40. Application form Question 1 Project description Question 2 Approach to development of an industrial cluster roadmap Question 3 Project challenges and opportunities Question 4 Outcomes and impacts Question 5 Evidence and capabilities Question 6 Team and resources Question 7 Project management Question 8 Risks and risk management Question 9 Added value Question 10 Costs and value for money Appendix Q7 Appendix Q8 Application Questions - Roadmaps Detailed Guidance Available on IFS
  • 41. Worked example – £500k total cost project: Project costs for 5 partners (2 SME, 1 University, a Catapult and 1 large), doing industrial research. Consortium example Total Eligible Project Costs Maximum % of eligible costs which may be claimed as a grant Innovate UK Grant Project Contribution Business Medium £130,000 60% £78,000 £52,000 Business Medium £90,000 60% £54,000 £36,000 Business Large £130,000 50% £65,000 £65,000 University HEI (80% FEC) £75,000 100% £75,000 nil** Catapult RTO £75,000 100% £75,000 nil Total £500,000 £347,000 £153,000 ** 20% FEC not to be shown as a contribution Research Base Costs £150,000 Research base % of Total Eligible costs 30.00%
  • 43. Why Je-S? • We use the Research Councils’ Joint Electronic Submission System (Je-S) to collect academic finances • The Je-S system automates the collection of Full Economic Costs (FEC) based costs from academic partners and tells them exactly what numbers should be used in the application form for their costs • Also to collect project finance details from non-HEIs (e.g. RTOs) that are claiming they are carrying out academic quality work and want to be funded on an FEC basis • Using Je-S means that Innovate UK follows standard Research Council guidelines on funding universities and enables Research Councils to easily co-fund Innovate UK projects
  • 44. • Enter the TSB reference number here • Enter the TSB Contribution column figures from your J-eS output document into the project costs section of the application • Upload the Je-S with council status form as a PDF at the bottom of the screen Project costs – academic partners
  • 45. Je-S application elements Not just the financials • E.g. Justification of resources • E.g Pathways to impact Full details on the Je-S system Queries about Je-S via the Je-S Helpdesk • JeSHelp@rcuk.ac.uk • 01793 444164
  • 47. Project cost summary All organisations can see a summary of project costs Ensure the highlighted costs fits the criteria for this competition
  • 48. Checking your finances are complete IFS checks • all organisations have marked their finances as complete • research organisation participation is no greater than 30% of the total project costs
  • 49. Submit your application early! Be aware of the potential for last minute technical issues!
  • 51. Application assessment All applications are assessed by independent assessors drawn from industry and academia What do they look for? • Clear and concise answers • The right amount of information • not too much detail • no assumptions • Quantification and justification • A proposal that presents a viable opportunity for growth, a level of innovation that necessitates public sector investment and has the right team and approach to be successful Keep your assessors engaged and interested in your proposal. You want them to be fascinated and excited by your idea!
  • 52. Note on feedback • The feedback is compiled using the written comments of the independent assessors who review and assess the applications. • It is intended to be constructive in nature and to highlight both the strong as well as the weak areas of your application. • Please bear in mind that because applications are assessed by a number of assessors, you may receive information which appears to be conflicting. This may reflect their different interpretations of the proposal that you submitted. • It must also be noted that some proposals may appear to have been favourably assessed based on their comments, in such instances it could be that your proposal simply fell below the funding threshold, with others achieving a higher merit score overall.
  • 53. Scoring We review scores and feedback to check assessors are adhering to our guidelines and scoring fairly. In some cases, where we feel a score is unjust and not supported by feedback, we may remove that score as an outlier and update the total score for the application. Please be aware that both low and high outliers may be removed and as a result scores may increase or decrease.
  • 54. Application assessment • The score spread shows the difference between the top and bottom scores • If score spread is 30 or more we will look to see if an outlier is apparent • If there is a 3 or more appear in either the two columns Count of No Scope or Count of No Recc’d we review the applications feedback and if justified, the application will not be eligible for funding.
  • 55. • The green box = particular assessors scores on an application • The purple box = set of scores for a particular question • The red box = at first glance this looks like an outlier Identifying outliers
  • 58. IFS for successful applicants Project Set up: 8 steps to complete • Applicable to all grant claiming partners • Must be completed within 30 days - projects must start within 90 days or funding may be withdrawn • Confirmation of your bank account is required to ensure we are paying the correct organisation you may/will be asked to provide a redacted bank statement to confirm this • Project change requests cannot be submitted before the project starts
  • 59. Project set up All grant claiming project partners will be required to complete project set up. To avoid delays you should consider: • Who will be the project manager? • Who will be the finance contact for each consortium member? • How will your consortium be set up? (if applicable)
  • 60. Collaboration agreement Original agreement signed by all participants Key Features: • Who is in the consortium? • What are the aims, and how is the work divided up? • Ownership of IPR • Management of consortium Negotiating a Collaboration Agreement can be complex and time consuming. Start work on this at an early stage in the process.
  • 61. Grant claims and payments • All grants are claimable quarterly in arrears • Claims can only be made for costs incurred and paid between the project start and end dates • Claims may be subject to an independent audit (including all academic partners) according to grant size • Claims are only paid once quarterly reporting and necessary audits are complete • Projects over 6 months are monitored on a quarterly basis including a visit from the appointed Monitoring Officer. Anything outside of this will be discussed on a case by case basis. • The monitoring will be carried out against a detailed project plan and financial forecast
  • 62. Customer Support Services: 0300 321 4357 (Mon-Fri, 9am-5:30pm) support@innovateuk.ukri.org Knowledge Transfer Network: www.ktn-uk.co.uk Innovate UK: https://www.gov.uk/government/organisations/innovate-uk Q&A
  • 63.
  • 64. Role of KTN & Wrap Up Dr Peter Clark Knowledge Transfer Manager & IDC Lead, Innovate UK Knowledge Transfer Manager
  • 66. KTN: Accelerating business-led innovation Partnering Consortia building B-2-B Grant Funding Private invest- ment Accelerating Business-led innovation Funding Proposal review B-2-R
  • 67. Finding valuable partners - Project consortium building - Supply Chain Knowledge - Driving new connections - Articulating challenges - Finding creative solutions Awareness and dissemination - Public and private finance - Advice – project scope - Advice – proposal mentoring - Project follow-up Promoting Industry needs - Informing policy makers - Informing strategy - Communicating trends and market drivers Intelligence on trends and markets - Business Planning support - Success stories / raising profile Navigating the innovation support landscape - Promoting coherent strategy and approach - Engaging wider stakeholders - Curation of innovation resources Connecting Supporting NavigatingInfluencingFunding KTN: Accelerating business-led innovation
  • 68. • BEIS Industrial Energy Transformation Fund (final consultation underway) • ISCF Transforming Foundation Industries: Fast Start Projects • Innovate UK SMART Grant • Innovate UK Innovation Loan • KTN assessing decarbonisation innovation landscape (we will be in touch!) Contact to Peter Jenni or Sheena @ KTN for advice & assistance! Peter.clark@ktn-uk.org & Jenni.Mcdonnell@ktn-uk.org & Sheena@Hindocha@ktn-uk.org Other relevant funding streams & activities
  • 69. Aim: to bring businesses from different foundation industries together to work on common resource and energy efficiency opportunities. Consortium must include at least 2 businesses representing at least 2 sectors in the foundation industries (cement, glass, ceramics, paper, metals and bulk chemicals). Fuel switching or technologies for the capture of emissions (e.g. CCS) is excluded. Current competition open: 28 Oct 2019; Current competition close: 5 Feb 2020 12:00pm Projects can focus on any part of the manufacturing process, including: feedstock inputs; production; material product development Project’s total eligible costs must be between £50,000 and £500,000 https://apply-for-innovation-funding.service.gov.uk/competition/497/overview ISCF Transforming Foundation Industries: Fast Start Projects (£5M)
  • 70. £315M Industrial Energy Transformation Fund It will provide funding for capital investment in energy efficiency and deep decarbonisation projects Investment will be guided the objectives to: • Reduce energy costs and emissions for industry, particularly for energy intensive companies in the near- term, and • Bring down costs and risks of deep decarbonisation technologies by demonstrating those technologies, including in a cluster setting
  • 71. £315M Industrial Energy Transformation Fund It proposes to support the following activities: • Deployment of mature energy efficiency technologies • Deployment of deep decarbonisation technologies • Feasibility and Front-End Engineering and Design (FEED) studies Consultation on final design in Oct 2019: Middlesbrough (30 Oct); Manchester (31 Oct); Glasgow (6 Nov); Belfast (7 Nov) Consultation closes: @11:45pm on 21 November 2019 https://ktn-uk.co.uk/news/industrial-energy-transformation-fund-consultation-published
  • 72. £25M Innovate UK Smart Grants: Oct 2019 • Current competition open: 17 Oct 2019 • Current competition close: 8 Jan 2020 12:00pm • Project with duration 6-8 months & total eligible project costs £25,000- £500,000 can be single or collaborative • Projects with duration 19-36 months & total eligible project costs £25,000 -£2 million must be collaborative https://apply-for-innovation-funding.service.gov.uk/competition/446/overview Searching for ambitious or disruptive R&D innovations that can have a significant impact on the UK economy
  • 73. £10M Innovate UK Innovation Loan: Sept 2019 • Targeted at SMEs with highly innovative late stage projects looking at best game changing and/or disruptive ideas or concepts with clear route to commercialisation & economic impact • Competition opens: Monday 23 September 2019 • Competition closes: Wednesday 27 November 2019 12:00pm • £100,000 - £1M Loan to fund your project’s eligible costs : • Projects must last >5 years and start by May 2020 https://apply-for-innovation-funding.service.gov.uk/competition/456/overview#eligibility
  • 74. KTN Assessing decarbonisation innovator landscape • We want to developing deeper understanding of current UK innovator landscape (TRL 3- 7) • Focus will be on technologies that will be crucial to help industry achieve Net Zero by 2050 • This will be an opportunity to profile UK innovators working in this space We will be in touch to ask for your input!
  • 75. Stay in Touch • Peter Clark (KTN lead for IDC) • Peter.clark@ktn-uk.org https://ktn-uk.co.uk/ Peter Clark (KTN lead for IDC) Peter.clark@ktn-uk.org
  • 76. @UKRI_news UK Research and Innovation UK Research and Innovation