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The BEIS Industrial Energy Efficiency Accelerator (IEEA)

Strengthening the global competitiveness of British industry through investment in innovation

IEEA-new-hero

Do you have an energy reduction technology concept that is ready to be demonstrated in industry?

Are you from a forward-thinking industrial site that could be interested in demonstrating an innovative new technology that will reduce your energy costs?

If the answer to either of these is yes, then the Department of Business, Energy and Industrial Strategy’s £9.2 million Industrial Energy Efficiency Accelerator (IEEA) could be of interest to you.

Key facts

  • The BEIS IEEA is competition designed to help identify new energy efficient technologies and accelerate their deployment in UK industry
  • Our key focus is on innovations with large cross-sector energy and carbon reduction impact, either from novel technologies or known technologies in new sectors
  • The target areas include all industrial and manufacturing sectors in the UK  this includes datacentres, water utilities and the waste sector

Target sectors include manufacturing, data centres, and the waste sector

  • The programme is open to private sector companies, universities and other research organisations; public sector bodies are not eligible
  • Funding will be awarded on a competitive basis, with awards up to £1m for 10-15 projects (40-60% capital support of eligible costs)

BEIS IEEA Phase 2 will run from 1 February – 30 April 2019. The Carbon Trust is offering an application support service to all applicants; it is encouraged that you apply early to receive the full benefit of this service. Please submit your ideas for consideration now.

Technology developers and industrial sites looking to demonstrate near-commercial innovations and access incubation support:

 

Submit project or technology ideas for consideration

The Carbon Trust has launched an Industrial Energy Efficiency Accelerator (IEEA), funded by the Department for Business, Energy and Industrial Strategy (BEIS). The IEEA is a funding programme designed to support partnerships between developers of energy efficient technologies and industrial companies willing to test technologies on-site. The programme is open to projects from all UK industry sectors that can demonstrate either a novel technology (targeting Technology Readiness Level 5-8), or the use of an established technology in a novel way.

Being involved in the BEIS IEEA will allow promising innovators to demonstrate their technology in an operational environment and increase confidence from potential users. The BEIS IEEA also provides forward-looking industrial companies with an opportunity to implement pioneering technologies with decreased risk and capital cost. 

A total of £9.2m in funding is available through the programme, primarily for funding demonstration projects1. Successful applicants should expect to receive between 40-60% of required funding for their project, with IEEA contributions typically between £150,000 and £1,000,000 per project – the remainder to be provided by the applicant. There is scope for a small number of exceptional projects to receive more than £1,000,000. 

Where appropriate, innovators will also receive project de-risking and incubation support to help them deploy successful projects, build a sales pipeline, hone their sales message and raise finance.

Are you eligible to apply?

Industrial companies with UK sites, UK universities and research organisations, or joint consortia may apply for a demonstration grant. It is possible for a company to apply individually; however, it is anticipated that most of the projects will be delivered through a partnership.

Eligibility

 

What types of projects may be eligible?

Projects from all industrial and manufacturing sectors will be considered so long as:

  • The technology is novel2

or

  • The project aims to use commercial technology in a novel way2

and

  • The result of the project will be a reduction in (or avoidance of) energy use and/carbon emissions

 

Types of projects that will not be eligible:

  • Buildings technologies
  • On-grid electricity generation technologies
  • On-site renewables3
  • Carbon Capture & Storage (CCS)
  • Big data / analytics (except for process optimisation)
  • Local authority projects (but note that local authorities can propose a UK site for technology implementation)

 

Other key requirements for eligibility:

  • Co-financing must have been secured (which can include in-kind contributions4)
  • There is strong energy and CO2 reduction potential
  • Project must have an agreed demonstration site in the UK (but the participants could be headquartered elsewhere)
  • The project demonstrates value for money
  • A deliverable of the scheme will be the public release of a case study for each project – you will need to ensure that all parties agree to providing project information (e.g. performance data and deployment success / failure)

 

How much funding might I be eligible for?

The funding eligibility is calculated based on compliance with EU State Aid rules5, dependent on the size of enterprise6 and the type of project to be completed. It is anticipated that projects will be awarded from £150,000 to £1 million, but there is scope for smaller or larger projects also.

Maximum state aid funding intensities towards eligible costs7 are shown below, but note that these amounts are not guaranteed and the actual amount offered will be decided on a case-by-case basis.

EU State Aid Guidance

Small Enterprise

Medium Enterprise

Large Enterprise

Industrial Research8

70%

60%

50%

Industrial Research with collaboration uplift

80%

75%

65%

Experimental Development9

45%

35%

25%

Experimental Development with collaboration uplift

60%

50%

40%

 

Where consortium partners are universities and not for profit research and technology organisations, activities they carry out may be funded at up to 80% of full economic costs, as long as the activities are considered to be “non-economic” activity10 i.e. activities which couldn’t be tendered and delivered by private sector organisations, and where the results will be disseminated widely.  Where universities are undertaking tasks which are not considered to be non-economic activity, then the normal EU state aid funding intensities shown above apply, based on the size of organisation and type of research.

 

The intention of the programme is to help developers and industrial partners to overcome the barriers to demonstration of potentially viable projects, predominantly through the provision of funding. To apply for a grant from the IEEA, the project should be at least at Technology Readiness Level (TRL) 5 before the contract is awarded, with a formalised plan in place to move the technology towards commercialisation via demonstration.

Scope of the programme

Project process flow including potential barriers

Project process flow

Supporting partner engagement

We expect technology developers to identify industrial businesses that they would be interested in partnering with to deliver their proposed technology demonstrator, and make contact with them.  Once we’re satisfied that the proposed technology and project approach meet the objectives of the Industrial Energy Efficiency Accelerator then we can provide some partner engagement support to the technology developer.

This limited support, which we anticipate will take the form of supporting several calls or meetings, will be targeted at helping the technology developer communicate the purpose, value and benefit of participating in the IEEA programme to the identified industrial businesses where the demonstrator could be located. At these same discussions the technology developer will present or restate their project concept. 

Because the IEEA application process is an open competition the IEEA team cannot endorse a technology.  That said, the IEEA team could indicate that there are no "in principle" barriers that would stop a technology from being supported as part of an competitively won demonstrator concept.

Application process (click to view larger version) (click to view larger version)

  • An initial screening recommendation will be provided to inform whether the idea is within programme scope
  • Application support is offered by the Carbon Trust and Jacobs whilst drafting applications

 

View our webinar on the application process:IEEA Webinar - Application Process

 

Submit project or technology ideas for consideration

 

If you have already told us about your idea, and are ready to apply – or just wish to see the application form, application guidance notes and terms & conditions, you can download the application documents.

 

Download application documents

Find out more

View the introductory slides which provide an introduction and overview of the IEEA, including key considerations for potential applicants such as the competition schedule, application process and eligibility criteria.

Download introductory slides (PDF)

Apply now

If you have a potential project, the first step is to submit your idea. We will carry out an initial screening, and can provide guidance on making a full application.

If you have already told us about your idea, and are ready to apply – or just wish to see the application form, application guidance notes and terms & conditions, you can download the application documents.


Download application documents

Frequently asked questions

Do we have to submit a full application from the beginning?

No, you should submit your idea to us in advance for screening, and we will provide guidance for your application.

Submit project or technology ideas for consideration

Can the consortium have more than two partners involved?

Yes – There may be a combination of industrial partners, technology suppliers, universities and other research organisations.

If I apply now do I have to wait till the end of the application window to hear back?

No – we will carry out an initial evaluation and provide feedback. We may ask you to attend a clarification meeting if any further information is needed. However, you will not receive a final decision until after the end of the application window.

When do we receive initial funding?

Funds from BEIS will flow to successful project in line with the project plan and milestones as stipulated by the applicant.

Must the technology be ready to install?

Yes – but as long as the technology is already at TRL 5, initial project activities can include further development to finalise equipment parameters / design before deploying an industrial scale prototype later in the project.

Funded by

Department for Business, Energy & Industrial Strategy

Led by

Carbon Trust

Partners

Jacobs    Wood Group

Supported by

Innovate UK  


Further information

1 Some programme funding will be used to provide other support services including developer incubation.

2 To count as being ‘novel’ a technology must either have not been commercialised before in the sector being demonstration, or not have been commercialised in the UK.  There must be a significant technical barrier to overcome.

3 The generation of energy or heat as part of an industrial process (e.g. the use of waste heat) for use on-site is within programme scope; general energy generation technologies will be assessed on a case-by-case basis.

4 Such as provision of equipment to be used in testing, or provision of currently employed staff members’ time for the project. Note that when using staff members, only the time that is actually allocated to the project can be accounted for.

5 EU state aid rules are designed to prevent unfair subsidies. The General Block Exemption Regulation (GBER) define a range of types of state aid that are approved by the European Commission. IEEA grants are offered within the remit of Article 25 of the GBER: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02014R0651-20170710. You might find it useful to seek independent advice in relation to your eligibility.

6 The definition of micro, small and medium-sized enterprises (SME) is set out in the European Commission Recommendation of 6 May 2003.

7 The eligible costs of research and development projects are defined in article 25 of the GBER and comprise personnel costs; costs of instruments and equipment to the extent and for the period used for the project (i.e. the depreciation costs corresponding to the life of the project); costs of buildings and land, to the extent and for the duration period used for the project; costs of contractual research, knowledge and patents; costs of consultancy; and additional overheads and other operating expenses, including costs of materials and supplies. For further details see: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02014R0651-20170710

8 Where ‘Industrial Research’ is defined by the EU as

planned research or critical investigation aimed at the acquisition of new knowledge and skills for developing new products, processes or services or for bringing about a significant improvement in existing products, processes or services. It comprises the creation of components parts of complex systems, and may include the construction of prototypes in a laboratory environment or in an environment with simulated interfaces to existing systems as well as of pilot lines, when necessary for the industrial research and notably for generic technology validation.

 

9 Where ‘Experimental Development’ is defined by the EU as:

acquiring, combining, shaping and using existing scientific, technological, business and other relevant knowledge and skills with the aim of developing new or improved products, processes or services. This may also include, for example, activities aiming at the conceptual definition, planning and documentation of new products, processes or services.

Experimental development may comprise prototyping, demonstrating, piloting, testing and validation of new or improved products, processes or services in environments representative of real life operating conditions where the primary objective is to make further technical improvements on products, processes or services that are not substantially set. This may include the development of a commercially usable prototype or pilot which is necessarily the final commercial product and which is too expensive to produce for it to be used only for demonstration and validation purposes.

Experimental development does not include routine or periodic changes made to existing products, production lines, manufacturing processes, services and other operations in progress, even if those changes may represent improvements.

 

10 For further details of what is considered non-economic activity, please see Annex D of this document: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/607691/bis-15-148-state-aid-manual-update.pdf

The results of the non-economic activity should be widely disseminated by way of teaching, publication or knowledge transfer. Any costs claimed should be in line with the terms and conditions of Eligible Expenditure in the Grant Agreement – the grantee must be satisfied they are compliant with these (e.g. not double-counting - grantees cannot claim for expenditure already paid through any other sources).

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