Notice

Clarification questions and responses (updated 25 July 2022)

Updated 28 June 2023

Clarification questions added 31 May 2022

1. For Call 2, does the 28 February 2025 deadline mean commissioned, operating, or decommissioned?

Call 2 projects are expected to be completed by 28 February 2025, with all eligible costs incurred and evidenced before that date. The scope of the project, and what aspects are funded by CCUS Innovation 2.0, is to be determined and justified by the applicant.

2. 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.

3. 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 2, but applications must be materially different.

4. Can I apply for Lot 1, 2 and 3?

Yes, lead applicants can submit (and be awarded) more than one application for grant funding in Call 2, including in more than one lot, but applications must be materially different. Similarly, 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 £5 million total grant funding for this Call.

5. Will a delegate list from the Industry 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 communicated with all those who have submitted an expression of interest by 01 July 2022.

6. 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 2.

7. 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.

8. 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 double-fund project work (retrospective or ongoing) that have already been funded privately or through government funding. However, funding can be provided to recipients in receipt of previous public funding if the new work is materially different than the previously funded work.

9. 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 for a full-scale commercial deployment, 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 or piloting 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.

10. 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 Part 1 Section 5 in the Call Guidance.

11. 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?

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

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

Please refer to Part 1 Section 7 in the Call Guidance.

13. Who will be reviewing & scoring the applications?

Eligible applications will be scored against the assessment criteria described in Part 1: Section 7, by three reviewers, including reviewers external to BEIS operating under the Technical Third Party Support (TTPS) contracts. All reviewers, internal and external, will be required to consider and identify any conflicts of interest in advance of the assessment process. Reviews will only proceed once BEIS is in receipt of reviewers’ declared Conflict of Interest forms.

14. Is there a single place where all the BEIS Energy Innovation competitions are summarised?

Find details of all innovation programmes that have been launched as part of the £1 billion BEIS Net Zero Innovation Portfolio (NZIP).

15. 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.

All applications will undergo a commercial and financial due diligence check and depending on results may lead to the applicant having to provide additional details as required. Please also refer to Part 1 Section 5 of the Call Guidance.

16. 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 Part 1 Section 5 of the Call Guidance.

17. 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.

Where possible it is useful for applicants to provide Heads of Terms for collaborative projects to illustrate how the consortium will operate. But Heads of Terms are not mandatory for your application. BEIS will require a fully-signed Collaboration Agreement before a grant offer letter is issued to all successful collaborative projects. Refer to guidance in Part 1 Section 5 of the Call Guidance.

18. 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. Please be clear how the Call 2 project, if successful, fits into the longer term commercialisation journey of the technology. An objective of CCUS Innovation 2.0 is to help technology be demonstrated at 10-100 tCO₂ per day scale to build confidence prior to full-scale commercial deployment. This is just an ambition for late stage (TRL6-8) technology this is not applicable to all project applications.

19. 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. Technology development (retrospective or ongoing) cannot be double-funded, see Question 8.

20. 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 involved in the application must be recorded on the application form and for projects with more than 3 partners, please use the additional partner form.

21. 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 a Lot 1 and Lot 2 application. Please see Guidance on Lot 3 eligibility. Please also refer to Part 1 Section 5 in the Call Guidance.

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

Yes. For Research Organisation please refer to question 11. For business enterprises please refer to Part 1 Section 5.5 table 10 in the Call Guidance.

23. 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. See Guidance Appendix 1.

24. 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. See also Question18.

25. 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.

26. 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.

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

All collaborative partners involved in the application must be recorded on the application form and additional partner form. Collaboration partners can include those providing support in-kind. The role and involvement of stakeholders who are not formal collaborative partners can also be described in your application.

28. Could you clarify how the SME business definition 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 respective organisations receiving the aid. Please refer to Part 1 Section 5 in the Call Guidance.

29. 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 Part 1 Section 5.5 table 10 in the Call Guidance.

30. 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 and that it is at an eligible TRL. TRL will only be used by assessors as a guide to the maturity of the technology.

31. 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 spirit of the application and must be agreed to by BEIS. BEIS will not be liable for costs incurred because of changing host site location. Please also refer to the response for Question 2.

32. 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 a different innovation programme.

33. 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.

34. 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 in Lot 1 and 2. Lot 3 is specific to next generation carbon capture technology.

35. 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 Part 1 Section 2 in the Call Guidance.

Clarification questions added 25 July 2022

36. Are projects in agriculture CO₂ sequestration from accelerated rock weathering in scope?

Carbon capture, utilisation, transport and storage are within scope for CCUS Innovation 2.0. Please note Direct Air Capture technologies is out of scope for CCUS Innovation 2.0. For the purpose of Call 2 weathering is within scope, but applications must be clear where the CO₂ ends, how this is additional and if it will be stored permanently or released at a later date.

37. Are letters of support from technology developers and/or users required as part of an application?

Applicants are provided with the option to upload additional information during the application process on SmartSurvey. It is not mandatory for applicants to upload Letters of Support. If the technology developer or user performs a significant part in the project the lead partner would be required to list them as a partner organisation.

38. Would a reactor project in a chemical and biological CCUS application be in scope?

Yes. An application which focuses on developing Carbon Capture or Usage technology would be eligible to apply for Lot 1 and Lot 2 only.

39. Can BEIS provide a Heads of Terms agreement template?

Heads of Terms agreements between project partners are unique to each project and as such BEIS does not provide a template agreement.

An indicative Grant Funding Agreement (GFA) and Grant Offer Letter (GOL) BEIS expects applicants to agree to is available on GOV.UK embedded within the CCUS Innovation 2.0 Call 2 information page.

40. Within the application should an organisations UK employee numbers only be included?

We expect the number of employees listed to be all employees Globally.

41. Is the commercialisation requirement different for Lot 1 or Lot 2?

All applications will be assessed on their own merit. Assessors will take in to account the technological maturity of a technology when assessing an application.

42. Can projects be simultaneously funded from public funding from other countries?

All projects are subject to the Subsidy Control regulations outlined in Part 1 Section 5 of the Call 2 guidance. All public funding received must be declared within the application, and cumulated with the BEIS funding being sought, to ensure that the public funding limit and the aid intensity levels are not exceeded for the project.

HM Government operates within UK-EU Trade and Co-operation Agreement (TCA) requirements and World Trade Organisation (WTO) rules.

43. Can applicants upload additional information with the application such as reference papers?

Applicants have the option to submit supporting information with their application within the assessment stage.

44. Is accelerated carbonation of fresh concrete in scope?

Yes. An application which focuses on developing Carbon Capture or Usage technology would be eligible to apply for Lot 1 and Lot 2 only. For the purpose of Call 2 carbonation of concrete is within scope, but applications must be clear where the CO₂ ends up, how this is additional and if it will be stored permanently or released at a later date.

45. Are new companies eligible to make an application?

All applicants must be registered on Companies House at the point of making an application.

46. The technology we’d like to develop lies in both Lots. Can we make an application for 1 project in both Lots or should we apply for one Lot only. If we have one technology for TRL 3 -5 and another one for TRL 6- 8, can we combine both technologies for one application like lot 1 TRL 3-5?

All applications must meet the TRL eligibility threshold by the start of the project. Applicants can submit individual applications into both lot 1 and lot 2, if they are materially different and this best addresses different aspects of technology development that need to be resolved to commerialise the underlying technology.. Please note applicants delivering more than one project cannot receive more than £5m in Call 2.

Lot 2 applications can include feasibility study, industrial research and experimental development. But the application must focus on and describe how the maturity of the underlying late-stage (TRL6-8) technology will be improved through the activities being proposed.

47. Is it possible to be matched with potential partners?

Please refer to the response for Question 5.

We’re unable to matchmake applicants for Call 2. However, we recognise the advantage this may provide for SMEs and will consider this in future when launching competitions. If you’ve any questions or feedback you’d like us to consider for this, email Industry.Innovation@beis.gov.uk.

48. We are a business Headquartered in London with the majority of our operations based outside of the UK, would an application from ourselves be eligible for funding?

Please refer to the response for Question 2.

49. Is biochar produced either from a biomass or biowaste feedstock to achieve a long-term carbon storage in scope?

Carbon capture, utilisation, transport and storage are within scope for CCUS Innovation 2.0. Please note Direct Air Capture technology is out of scope for CCUS Innovation 2.0. For the purpose of Call 2 production of biochar is within scope, but applications must be clear where the CO₂ ends up, and if it will be stored permanently or released at a later date.

50. Are unsuccessful Call 1 applicants eligible to apply for Call 2?

Yes. Applicants who were unsuccessful during Call 1 are eligible to submit their project for funding in Call 2. Further information is available in the Call 2 guidance at Part 1 Section 4.12.

51. Can I just check, this won’t fund DAC, but what about seawater removal?

For the purpose of Call 2 seawater removal of CO₂ is within scope, but applications must be clear where the CO₂ ends up, how this is additional and if it will be stored permanently or released at a later date.

52. I would appreciate confirmation that a consortium looking at a solid oxide fuel cell powertrain for marine application with a carbon capture system on the end is potentially within scope of this call. (The Captured carbon could then be processed for synthetic fuels in a circular economy type approach).

For the purpose of Call 2 carbon capture on a marine application is within scope, but applications must be clear where the CO₂ ends up.

53. Are there any limits to the subcontracting costs either by value or ratio of project costs that can be included as part of the project?

Whilst there is no set limit to the value of or ratio of subcontract costs to the project costs, this will be considered in context with the project during the assessment and moderation phase. Successful applicants from the assessment and moderation process may be required to address any financial clarifications as part of the route to grant award, including any questions around subcontracting costs.