Notice

Competition questions and answers

Updated 31 May 2022

This is a set of answers to questions about applications to the CCUS Innovation 2.0 funding competition.

We have also replied to other materially significant questions received (see Part 2 responses, published 30 July 2021).

This page was last updated on 12 August 2021.

We have updated the answers to the following questions:

• 24 to 25
• 32 to 34
• 40 to 41
• 44
• 46 to 49
• 51 to 52

Part 1: Frequently asked questions

1. When will Call 1 applications to the CCUS Innovation 2.0 funding competition open?

The competition opened for applications on 12 July 2021.

2. How can I apply?

Applicants must apply using the online portal. All applicants must inform industry.innovation@beis.gov.uk by 31 July 2021 that they intend to apply.

3. When will the application window close?

Applications must be submitted to the online portal by midnight 29 August 2021.

4. When will Call 2 applications to the CCUS Innovation 2.0 funding competition open?

Call 2 is scheduled to open in May 2022. We will provide further information closer to the date.

5. Do I need to apply for Call 1 to be eligible to apply for Call 2?

No. There is no dependency on Call 1 for eligibility to apply for Call 2.

6. Where can I find out more information about the ‘Next generation carbon capture technology for industry, waste and power’ research study and how can I get involved?

An ITT for the 9-month research study was issued in April 21. We are in the process of evaluating those bids and will announce the successful bidder in due course.

If you are a technology developer or an interested industrial stakeholder and you would like to get involved with the study, please email industry.innovation@beis.gov.uk with the subject heading ‘CCUS Innovation 2.0: Stakeholder Study’.

7. When will the results of the ‘Next generation carbon capture technology for industry, waste and power’ research study be made available to the public?

The results of the 9-month study will be made available prior to the launch of Call 2. We anticipate Call 2 to be launched in May 2022.

8. When will applicants be notified about the results of their applications?

All Call 1 applicants will be informed of the outcome of their bid towards the end of October 2021. Letters will be sent to successful and unsuccessful bidders.

9. When are the projects expected to start?

Projects are expected to start from November 2021.

10. When are the projects expected to finish?

Projects can apply for up to 36 months of funding, and BEIS will consider project durations of longer where justified. But all projects must be complete by 31 March 2025. Please refer to Section 1 in the Call Guidance.

11. For Call 1, does the 31 March 2025 deadline mean commissioned, operating, or decommissioned?

Projects are expected to end on 31 March 2025, with all eligible costs fully defrayed and evidenced before that date. The scope of the project is to be determined by the applicant.

12. Is the competition open only to UK based organisations? Can non-UK based organisations lead a project?

The competition is open to all organisations, independent of where they are based. Projects can work with international partners, but at least 50% of the project funded work must be conducted in the UK. It is preferred that the demonstration of technologies will be at a UK site, but can be at a non-UK site if this can be shown to be reasonably justified.

Non-UK based organisations can lead a project, however, please note if successful we would expect organisations to provide appropriate financial information about their organisation to pass due diligence.

13. Can I submit more than one application as a lead applicant?

Lead applicants can submit (and be awarded) more than one application for grant funding in Call 1, but applications must be materially different.

14. Are projects required to be collaborative?

Individual organisations as well as consortia are welcome to apply for the funding competition, but there is no explicit requirement for collaborative applications.

15. Can my organisation apply as part of multiple consortia?

Consortium member(s) can take part in multiple successful bids. However, if project consortium member(s) are part of multiple successful bids they must be able to deliver on all of them and they must not have applied for funding for the same piece of work more than once. Each individual applicant is limited to £5m total grant funding for this Call.

16. Can universities work with other organisations in applying? Can universities lead an application?

Yes, academic institutions can submit collaborative applications and they can lead an application.

17. Can my organisation apply for both Lot 1 and Lot 2?

Yes, although applicants will receive no more than £5 million, including if they are delivering multiple projects.

18. Will a delegate list from the Stakeholder Engagement Day be shared so we can contact interested parties to engage in possible consortium establishment discussions?

A delegate list of those who agreed to have their contact details shared will be shared with all those who submitted an expression of interest by 31 July 2021.

19. Would an existing technology, which is not yet in use in the UK, be in scope for this competition?

Yes. The technology must meet the TRL conditions as outlined in each of the Lots. For further information on the location of the project, please refer to question 12.

20. Would a project developing an innovative CCS approach for blue hydrogen be suitable for this competition, or would it better fit in the Low Carbon Hydrogen Supply 2?

If the technology being developed meets the criteria of Lot 1 or 2, it would be suitable for this competition.

21. Is CO2 shipping or software development in scope?

The scope of CCUS Innovation 2.0 is innovation in the capture, usage, transport and storage of CO2. Any innovation that is unique; meaningfully reduces the cost of deploying CCUS; and/or de-risks the deployment of CCUS is within scope of the CCUS Innovation 2.0 programme.

22. If a technology is currently in development and receiving funding under an Innovate UK Smart grant, can further funding from BEIS be applied for?

BEIS will not fund projects that have already been funded privately or through government funding, however funding can be sought for ongoing development on an eligible project.

23. Does the funding cover CAPEX costs?

Yes.

24. Can a FEED study be undertaken?

Front-End Engineering Design (FEED) for a full-scale commercial deployment project will not be supported. All funding requests can include aspects of engineering design up to (and including) pre-FEED, meaning any design work and activities on the approved concept in preparation for FEED. In essence this programme supports novel CCUS innovation through its entire development lifecycle: supporting it to be developed, de-risked, demonstrated and studied at pre-FEED.

For projects demonstrating technology in a non-commercial setting, for example at site or in lab conditions, all engineering design work to design, build and operate the demonstration unit is eligible to receive co-funding in CCUS Innovation 2.0.

25. What % of funding is available to Higher Education Institutions?

For higher education institutions BEIS will not pay more than 80% of the Full Economic Costs (FEC) calculated using the Transparent Approach to Costing (TRAC) methodology. For other “research organisations” (see definition in Guidance), BEIS will fund up to 100%. Please refer to Section 5.2 in the Call Guidance.

26. Do we need to send two finance forms since the project will be a collaboration (e.g., between two or more companies, a company and a university, etc.) or should everything be included into one finance form?

Costs relating to a partner must be incorporated into a single project Finance Form.

27. Can you please provide more details on how each proposal will be assessed, i.e. scoring criteria/ranking?

Please refer to Section 7 in the Call Guidance.

28. Who will be reviewing & scoring the applications?

Applications will be assessed by three independent assessors (internal and external to BEIS).

29. BEIS have also launched the Low Carbon Hydrogen Supply 2, Greenhouse Gas Removals and the Long Duration Energy Storage competitions. Can projects apply to more than one competition?

Projects are not limited to applying to only one competition. However, they will not be double funded if successful in both.

30. Is there a single place where all the BEIS competitions are summarised?

Find details of all innovation programmes that have been launched as part of BEIS Net Zero Innovation Portfolio (NZIP).

Part 2: Anonymised questions received

31. As a recent start-up, are there flexibilities within the Undertaking Distress calculations for successful bidders? We were previously awarded an Innovate UK grant but were unable to receive the award due to the EU State Aid rules.

Since the UK Exit from the European Union, EU State Aid rules no longer apply to the competition. UK Legislation ‘Subsidy Control’ will be used in this competition. BEIS will operate within the UK-EU Trade and Co-operation Agreement (TCA) requirements and World Trade Organisation (WTO) rules, we may decide to offer lower levels of funding than the maximum permitted under the rules; additionally, the funding rules set out in this for CCUS Innovation 2.0 are specific to this Competition only. Please refer to Section 5 of the Call Guidance.

32. As a recent start-up, if we were to partner with another organisation would that effect the Undertaking Distress calculations?

All successful lead applicants will undergo due diligence prior to entering a grant agreement with BEIS. Please refer to Section 5 of the Call Guidance.

33. Am I required to include a Heads of Terms agreement? I manage a small company it would be challenging to have this in place before the application deadline.

Heads of Terms for collaborative projects are only required before a grant offer letter is issued by BEIS to successful bidders. Refer to guidance in Section 5 of the Call Guidance.

34. Can this funding be utilised to support demonstration projects at a scale of 10 TPD which would generate data to design a 100 TPD plant within the same or a subsequent project?

Yes, this can happen within the same or a subsequent project. The total funding available, i.e. grants applications of greater than £1 million, is contingent on the applicant satisfactorily meeting the eligibility criteria of Lot 2.

35. We will be presenting a potential CCU integrative project within the city scheme of a local authority and I was wondering if this would be considered within the eligibility scope of the competition?

The project will be considered if the technology falls within the scope of the competition. Similar technology development cannot be funded from 2 grant funding programmes.

36. If my organisation is involved in a project within a large consortium, am I required to declare these stakeholders and technology providers in my bid.

All collaborative partners and stakeholders involved in the application must be recorded on the application form and additional partner form.

37. Is there a restriction of the type of organisation that can lead a project in this call?

There are no restrictions to the type of organisation that can make an application. Please refer to Section 5.2 in the Call Guidance.

38. Is there a maximum percentage of project funding that can be claimed?

Yes. For Research Organisation please refer to question 25. For Private enterprises please refer to Section 5.2 table 3 in the Call Guidance.

39. Does the call include funding for capital equipment?

Yes. Capital equipment will only be funded based on its NPV/deprecation at the end of the project. Please refer to Question 23.

40. My organisation is looking to scale up 10 tonne per day usage technology, would we be eligible for the competition?

The scope of CCUS Innovation 2.0 is innovation in the capture, usage, transport and storage of CO2. Lot 1 is for technology with a TRL of ~3-5, at the start of the project. Lot 2 is for technology with a TRL of ~6-8, at the start of the project. When considering applications for grant-funding in Lot 2 (grants of up to £5 million), BEIS assessors will have discretion to deem a project to be at a higher or lower maturity than its TRL would suggest.

41. Does the Lot 2 late-stage technology funding have to be used to build and demonstrate a technology at a scale of 100 TPD?

CCUS Innovation 2.0 is keen to demonstrate as much late-stage CCUS technology as possible, ideally demonstrating technology at a scale of 100 TPD or greater. But this is not a requirement. Lot 2 provides co-funding for late-stage CCUS technology to meaningfully accelerate the commercialisation of the technology, this doesn’t have to include demonstrating the technology at 100 TPD or greater.

42. As a HEI do we need to submit our application through JeS as well as directly to BEIS?

All applications for the CCUS 2.0 programme are to be submitted through the smart survey link on the competition landing page on GOV.UK.

43. Is there a way to capture non-funded partners on the applications form?

All collaborative partners and stakeholders involved in the application must be recorded on the application form and additional partner form. Collaboration partners can include those providing support in-kind.

44. My technology is not mature enough to apply for Call 1. Would I be eligible to apply for Call 2?

To apply for grant-funding in Call 1 and Call 2, the underlying CCUS technology must be at least a TRL of 3 (Critical Function or Proof of Concept Established) at the beginning of the project, and below a TRL of 9. More information on Call 2 will be published in 2022. Please refer to Question 4.

45. Could you clarify how the SME business definition on p22 applies to a group of companies? Is the definition applied on an individual company basis or a group basis (and what would the definition of a group be)?

For collaborations containing different sized enterprises or Research Organisations, funding intensity is related to the company receiving the aid. Please refer to Section 5.2 in the Call Guidance.

46. On grant intensity levels, is that 80% FEC so it’s really £800k or is it that the project could be £1.2 million and claim £1 million.

The maximum grant intensity levels for public funding represent the proportion of project funding BEIS will support. Applicants can receive up to £1 million in Lot 1 or up to £5 million in Lot 2. For example, an application for £1 million grant at an 80% intensity, would require that the total project cost be at least £1.25 million. Please refer to Section 5.2 table 3 in the Call Guidance.

47. If the technology proposed is currently at TRL of 3-5 and the grant could take the technology to TRL 9. Can the technology be suited for Lot 2 instead of Lot 1? This is relevant to software technologies which have different TRL definitions, and which can go from low TRL to high TRL in a short period of time.

Applications will have to define what the TRL of their innovation will be at the start of the project. TRL will only be used by assessors as a guide to the maturity of the technology, and will have discretion to deem a project to be at a higher or lower maturity than its TRL would suggest.

48. Our technology is currently TRL 6 for a BECCS application and expect this to increase to TRL 8 by 2023. For the purposes of BEIS CCUS 2.0, we consider our technology to be TRL 3 in the industry sectors relevant to this call at the beginning of grant program, but we believe we can quickly realise the benefits from parallel programs, potentially raising to TRL 8 by 2024. Are we able to submit under [£1m] Lot 1 and / or [£5m] Lot 2?

See questions 44 and 47. If there are particular aspects of an applicant’s technology that suits an applicant submitting both a Lot 1 and Lot 2 application this is allowed. But both applications must be clear on their interdependencies. If a lead applicant or project consortium member(s) are part of multiple successful bids they must be able to deliver on all of them and they must not have applied for funding for the same piece of work more than once.

49. We are developing technology from TRL 3 to TRL 8 over the duration of this program, do we have to split our programs and submit a Lot 1 in call 1, followed by a Lot 2 in call 2?

If the TRL at the start of the project is in the range 3-5, this would appear to be a candidate for Lot 1. Projects receiving funding in Call 1 can apply for funding in Call 2. However, applications for Lot 2 in Call 2 will need to demonstrate that the technology is at a late stage of its development by the start of the Call 2 project.

50. Do proposed host sites need to be fixed at the time of the application?

Applications should reflect an accurate indication of the project. There is flexibility to move location, but this must be within the scope of the competition call and must be agreed to by BEIS. BEIS will not be liable for costs incurred because of changing host site location. Please refer to Section 5.2 table 3 in the Call Guidance.

51. If a grant award sparks market interest, will we be able to expand our program with an additional co-funding partner, and subsequently secure addition BEIS funding?

No. BEIS is unable to provide additional funding post-award. In this example, the applicant would have to apply for funding in Call 2, or a different innovation programme such as a later phase of BEIS Energy Entrepreneurs Fund (EEF).

52. We understand a limit of £5 million funding is available across all applications. Does this also include where we act as a sub-contractor for the provision of services to applications lead by 3rd parties (i.e. not lead or collaboration members)?

This requirement only applies to organisations applying for funding on their own or collaboratively as partners. The £5m funding limit does not apply to sub-contractors.

53. Can I please confirm that undertaking a feasibility study (fulfilling your stated definition) of a potential geological CO2 storage site would be within the scope of the CCUS Innovation 2.0 call?

Yes. Subsurface systems and storage projects would be within the scope of the competition.

54. Is there support available for small businesses?

Yes. In addition to grant-funding to complete the innovation project successful applicants who meet the definition of a UK-based Small & Medium Enterprise (SME) will also be offered support under the Acceleration Support Scheme. The Acceleration Support scheme is 100% funded by BEIS. Please refer to Section 2 in the Call Guidance.