BEIS INNOVATION PROGRAMME: GREEN DISTILLERIES Up to £500k funding available to procure SBRI projects to develop fuel switching and fuel switch enabling technologies for distilleries in the UK. 1
Today’s Agenda Item Subject Timing Who 1. Introduction and objectives of the session 10:00 Chris Windle 2. Overview and objectives of innovation funding 10:05 Mark Taylor 3. The Green Distilleries Competition, structure, SBRIs 10:15 Chris Windle and eligibility 4. Technology Scope, timeline and application process 10:25 Shak Choudhury 5. Coffee Break 10:45 6. General procurement procedure 11:00 Julie-Anne De Thomasis 7. Next steps / wrap up 11:10 Shak Choudhury 8. Final Q&A session 11:15 Chris Windle & Shak Choudhury End 11:30 2
Introduction Objectives of the session • Introduce Energy Innovation at BEIS • Outline the Green Distilleries Competition • Explain how to apply and how the competition will work • Outline the next steps • Collect questions 3
Energy Innovation Introduction Dr Mark Taylor Deputy Director for Energy Innovation - Delivery Science and Innovation for Climate and Energy BEIS 4
HMG Strategies • Target of Net Zero by 2050 – in June 2019 the Government Committed to Net Zero by 2050 5
Energy Innovation Support Landscape – Organisation Overview BEIS Other Devolved Government (UK Energy Administrations Departments Strategy & Policy) Northern Scottish Welsh Ireland SICE (Science Government Government UKRI Assembly and Innovation for Climate and Energy) Research Councils Innovate UK (EPSRC = Energy Lead) Energy Knowledge System Transfer Catapult Network 6
BEIS Energy Innovation Programme SICE Energy Innovation Programme - £505 million Accelerating the commercialisation of innovative cheap, clean, and reliable energy technologies by the mid 2020s-2030s. ~103m £180m £15m £90m Built £70m Smart £50m Cross- Industry & Nuclear Renewables Environment Systems Cutting CCUS Supporting Driving down More cost Driving down Scaling up Low carbon disruptive costs and effective the cost of flexibility and options for innovations building new energy low carbon looking for industry, (particularly for UK supply efficiency and electricity at new storage lowering SMEs), inc. chains and low carbon scale options energy costs innovative skills heating finance. IEEA ACT CCUS Hydrogen CCUS Industrial Fuel CCU Supply Innovation Switching Demo £5m £33m £20m £10m £13m £22m 7
Industry and CCUS competitions Industrial Fuel Switching (£20 million) • Aim: to stimulate early investment in fuel switching processes and technologies • Phase 1 – 1 market engagement study complete • Phase 2 – 7 feasibility studies complete • Phase 3 – 4 demonstration projects in delivery • HyNet North West – fuel switching several key industrial processes from natural gas to hydrogen • State-of-the-art fuel mix for UK cement production to test the path for net zero • Alternative fuel switching technologies for the glass sector • Hydrogen alternatives to natural gas for calcium lime manufacturing 8
Industry and CCUS competitions Industrial Energy Efficiency Accelerator (£10 million) • Aim: to increase the number of energy efficiency technologies available to industry to help reduce energy consumption and cut carbon emissions • Phase 1 – 7 projects in delivery • Including low carbon cements, energy storage, hygiene systems, steam boilers and water treatment • Phase 2 – 9 projects in delivery • Including plastic manufacturing, waste processing, data centre cooling and water treatment CCU Demonstration (£5 million) • Aim: to design and construct carbon capture and utilisation (CCU) demonstration projects. • Phase 1 feasibility – 14 feasibility studies complete • Phase 2 FEED – 2 studies complete • Phase 3a – 1 project in delivery (Tata Chemicals) 9
Industry and CCUS competitions • Green Distilleries Competition • Focusing on fuel switching and enabling technologies • Driving the UK towards achieving Net Zero • Providing leadership ahead of COP 26 (Nov 2021) • Seeking a flagship industry to lead and demonstrate Net Zero Solutions 10
BEIS INNOVATION PROGRAMME: GREEN DISTILLERIES 11
Supporting Innovation – Green Distilleries Committed up to The decarbonisation of £10m funding to distilleries has the support distilleries potential to cut almost going green up to 0.5 MtCO 2 e/y by 2050. 2023. The UK Distilleries industry has grown by 20% in 2019, with funding in low carbon innovation this growth can be The technology must enhanced further. This competition focusses be applicable to the on fuel switching with the distillation sector, aim to demonstrate, at pilot scale, a range of fuel including from switching processes and maltings through to enabling technologies. maturation. 12
Distilleries Competition – Aims & Objectives Green Distilleries Objective: to identify, support and then develop credible fuel switching technologies/enabling technologies that can bring about a step change in their development. Aims: • To produce cost estimates for developing particular fuel switching and enabling technologies, whilst also identifying the market potential, cost reduction, energy use and carbon saving • To demonstrate a range of innovative fuel switching and enabling technologies across the distillation industry • To reduce the risks associated with fuel switching to lower carbon fuels. 13
Distilleries Competition – Aims & Objectives • To disseminate the findings from the demonstrations, increasing the confidence across a range of industry sectors that fuel switching is a credible solution to decarbonisation and increasing awareness in industry of the potential options. • To improve BEIS understanding of the challenges and costs associated with decarbonising industry/providing low carbon fuel across the UK including in remote locations ; and provide more detailed, robust evidence about the likely extent of and potential for industrial fuel switching across the UK. 14
Distilleries Competition Phases • The competition consists of two phases • The ITT and application form to be published 14 th September 2020 are for Phase 1 (feasibility) • A separate ITT and application will be provided for Phase 2 – this is only open to applicants who were successful in Phase 1 and who have completed the feasibility study • We are planning to run Phase 2 in April/May 2021 subject to receiving applications of sufficient quality 15
Distilleries Competition – Phase 1 Phase 1: Feasibility Study (£500k) – 7 th December 2020 – 15 th March 2021 • Complete a feasibility study for novel Green Distilleries solution • Split into two Lots Lot 1 (£300k): will focus on fuel switching of the process and onsite power production Lot 2 (£200k): will focus on innovation around fuel switching enabling technologies such as fuel conversion, transport and storage • Maximum £75k funding available per project • Projects to be completed by 15 th March 2021 16
Distilleries Competition – Phase 2 Phase 2: Demonstration Study (£9m) – April/May 2021 – 31 st March 2023 • Complete a demonstration study enhanced by the feasibility study for novel Green Distilleries solution • Only those applicants who been successful for Phase 1 and have completed their feasibility studies can apply for Phase 2 • Maximum £3m funding available per project • Projects to be completed by 31 st March 2023 17
SBRI Procurement Process What is an SBRI? • Small Business Research Initiative; • Pre-commercial procurement – aimed at solutions which are not yet ready for the commercial market; • Sharing of risks and benefits –suppliers receive financial support and retain arising IP (certain rights of use retained by BEIS). SBRI contracts are therefore expected to be priced below market rates, reflecting these benefits to the supplier; Terms and Conditions • Suppliers retain the rights over any IP arising from the project; • BEIS reserves the right to take up arising IP if it has not been commercially exploited by the supplier within 5 years of contract commencement. • Phase 1 and Phase 2 projects will be signed under separate contracts • Standard public sector termination clauses will apply (including termination at convenience by either party with 28 working days’ notice) • For Phase 1 only - Liability is limited to twice the contract value (Except in relation to death or personal injury) 18
Distilleries Competition – Eligibility for Funding Item Subject Eligibility 1. Location Over 50% of the work must be carried out in the UK and led by a UK based company 2. Technology readiness level level at the start of the project 4 – 7 3. Retrospective work BEIS in unable to fund retrospective work on projects 4. Organisation type Includes both SMEs and large organisations; organisations from the public, private and third sectors; academic and research organisations may be consortium members but cannot be lead applicants 5. Additionality Evidence must be provided to show that innovation would not progress without public funding 6. Contract size Maximum funding requested must be £75k or below for Phase 1 and £3m or below for Phase 2. Private investment is also welcome. 19
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