Summary of scope and eligibility

The IEEA is open to UK demonstrations of novel industrial process technologies with the potential to cut carbon emissions through reduced energy consumption and/or improved resource efficiency.

Its focus is on industrial process innovations with large cross-sector energy and/or resource savings, and strong carbon reduction potential. The projects must contribute to the UK’s net zero commitments.

Projects comprise an industrial partner that will implement the technology at their site, and (usually) a technology developer that has developed the new technology. Other project partners in a consortium can include research organisations, universities, specialist technology suppliers and consultants.

Outline eligibility criteria are shown below. The final eligibility criteria has been published and can be found within the application guidance. Project eligibility

• Demonstration of a novel technology, or a commercial technology in a novel way
• Project will lead to a reduction of carbon emissions through reduced energy use and/or resource efficiency
• Energy/resource efficiency is achieved in the production stage (i.e. not distribution, use or disposal)
• Project must have good scale-up and commercial replication potential in the UK industrial sector

Sector eligibility

• The industrial processes that the IEEA targets are typically found in the following in-scope sectorsi,ii: manufacturing (SIC 10-33), aggregates (SIC 08), water, waste (SIC 36-39) and data centres (SIC 63110).

Technology eligibility

• Efficient industrial process technologies with Technology Readiness Level currently 5 – 8. Progress to TRL8 or 9 during the project.
• Novel technology – or commercial technology not currently demonstrated in the UK, or in the planned demonstration sector.iii

Eligible technologies include: - Energy saving projects; reduced waster use; reduced waste production; re-use of water or waste OR - Reduced use of raw materials; use of demonstrably lower carbon materials; material recycling or re-use INCLUDING - Advanced digital technology, including enhanced sensors & controls and process learning for process optimisation leading to superior energy and resource efficiencies within the demonstration project. Organisation eligibility

• Commercial technology developers
• Industrial companies with a demonstration siteiv in the UK
• Research Organisations – including universities, research and technology organisations, trade associations, charities etc Other private sector companies – including consultancies, specialist equipment or material suppliers etc

Other requirements

• Grant funding will typically be between £150k - £1m per projectv, with the remainder to be funded by the applicant(s)
• All projects must have secured match funding
• Project participants will be required to sign up to DESNZ grant funding terms and conditions
• Projects will need to comply with subsidy rules (formerly state aid rules)

Out of scope – the following project types are not eligible for IEEA funding:

• Buildings, building fabric, building services (e.g. space heating, cooling and ventilation)
• On-grid electricity generation or electricity storage technology
• On-site renewables technology (e.g. wind, biomass, PV, solar thermal etc)
• Carbon capture and storage
• Fuel switching (unless there is also an energy reduction)
• Vehicles and reductions in transportation
• Fuel production

__________________________________ i SIC codes provided at the sector level – note that not all subsidiary SIC codes may be eligible eg SIC 38.1 is not eligible. ii Other industrial sectors may be considered IF the energy efficient industrial process innovation to be demonstrated can be shown to be widely applicable to in-scope sectors AND the demonstration would produce compelling evidence to justify use of the industrial process technology by these in-scope industries. iii Where the technology is already demonstrated overseas or in a different sector, there must be significant technical or market acceptance barriers to uptake in the demonstration sector, which the project will seek to overcome – not just commercial or price barriers. iv The demonstration site will normally be a commercial production facility. Demonstration on a suitable scale pilot plant may be acceptable in exceptional circumstances. v There is scope for a small number of exceptional projects to receive more than £1m, where significant cross sector carbon savings are expected. In addition there is scope for smaller projects to apply for less than £150k, where they can demonstrate sufficient carbon saving impact.