Overview
Innovate UK is investing a minimum of £4.77 million through the Climate Tech FOAK Builder pilot programme to help ambitious UK SMEs advance first-of-a-kind (FOAK) climate technology projects towards commercial deployment.
The programme supports businesses developing innovative climate technologies that have progressed beyond early-stage research and demonstration, but require further technical, commercial and financial preparation before securing investment.
Successful applicants can access up to £315,000 in tailored, in-kind support, including specialist technical assistance, commercial advisory services and mentoring. This support is designed to help businesses develop credible, investment-ready projects capable of reaching a Final Investment Decision (FID).
The programme will help businesses strengthen their engineering and delivery plans, investment strategies, commercial agreements, project governance and risk management. Successful applicants will work with Innovate UK and a Technical Assistance Supplier (TAS) to develop a FOAK Development Plan and a FOAK Support Plan.
The competition has two phases:
- Phase 1: Programme entry and access to specialist technical and commercial support (this phase)
- Phase 2: Potential grant funding for eligible project development costs, subject to invitation and further assessment
The programme does not directly fund the construction or deployment of FOAK facilities. Instead, it prepares businesses to secure the investment and partnerships needed to progress towards commercial-scale implementation.
Businesses are expected to be developing FOAK projects with anticipated capital requirements between £10 million and £100 million and must aim to reach FID within 18 months of completing Phase 2.
Scope
The aim of this EOI competition is to support and accelerate Climate Tech First-of-a-Kind (FOAK) projects towards Final Investment Decision (FID). It will do this by providing expert advisory, technical assistance and mentoring or upskilling support, alongside potential grant funding.
Successful applicants will participate in the Climate Tech FOAK Builder programme. This will involve working with Innovate UK and the FOAK Builder Technical Assistance Supplier (TAS) to:
- Develop a deeper understanding of the applicant's FOAK project
- Define a bespoke FOAK Development Plan and a FOAK Support Plan
- Enact the FOAK Support Plan, if approved by Innovate UK, and take part in wider FOAK Builder activities
Wider FOAK Builder activities may include:
- Networking with other participating businesses
- Meeting potential investors
- Attending FOAK Builder events
- Supporting promotional activities
- Taking part in workshops
This list is not exhaustive.
Expressions of interest must focus on a specific climate technology FOAK project. In-kind support is the focus of the FOAK Builder programme, and assessments will consider the proposed project and the benefits that participation could bring to the business.
FOAK projects must:
- Demonstrate that an innovative technology, process or configuration is commercially viable and can operate at commercial scale
- Involve a technology, process or configuration that has not previously operated successfully at commercial scale anywhere in the world
- Go beyond a small-scale demonstration or pilot that only proves technical feasibility
- Be beyond Front-End Loading (FEL) stage 1 for all project components, including technical, commercial, financial, project management and team considerations
- Be in a position to make significant progress towards FID as a result of the support
- Demonstrate the potential impact on the UK economy and relevant supply chains as a result of deployment at commercial scale
Expressions of interest must describe the scope and nature of the proposed FOAK commercial project or facility, including how, where and when it will be built.
The application must also address the following interlinked aspects.
Technical
- Use of technology at or above Technology Readiness Level (TRL) 7, where the project involves deploying an innovative technology
- Validation of technology readiness through late-stage demonstration of the solution's performance in a real-world environment
Commercial
- Progress towards securing commercial agreements with customers
- Offtake, feedstock and supply chain requirements, including how these agreements will be secured
Financial
- Estimated capital cost of the FOAK commercial project
- Plans to finance the project, including funding gaps, the next financing event and progress made to date
Project development
- Progress made towards developing the project, such as securing a site and obtaining planning consent
- Concept designs, process flow diagrams (PFDs) and reference plant or facility layouts, where relevant
- Understanding of critical permits affecting the development and construction of the FOAK project
Expressions of interest must also describe:
- The main project risks across all elements of project delivery
- The team's current skills and capabilities, including any gaps where support is needed to deliver the FOAK project
- How participation in the Climate Tech FOAK Builder pilot would benefit the business and its project
- The longer-term benefits of the FOAK project and FOAK Builder support, including the scale and potential growth of the global market for second-of-a-kind and subsequent deployments
The FOAK Builder is not suitable for early-stage research and development, initial pilots or small-scale technology demonstrations.
Innovate UK aims to support a variety of projects across different technologies, markets, technological maturities and research categories.
Key themes and topics
FOAK projects must focus on one of the following climate technology areas:
- Sustainable fuels, excluding those that rely on carbon from fossil sources as an input or municipal solid waste
- Grid technologies, including energy storage, or technologies or solutions that enable grid efficiency or operational improvements delivered through the deployment of hardware
- Engineered carbon removals, including direct air capture and innovative point-source carbon capture technologies
- Low-carbon material production and recycling, including concrete, steel, chemicals or other key industrial inputs, including critical materials
Projects that will not be funded
Innovate UK will not fund projects that:
- Do not fit the scope
- Do not fit within the specific themes
Projects cannot receive funding if they:
- Involve primary production in fishery and aquaculture
- Involve primary production in agriculture
- Are not allowed under de minimis regulation restrictions
- Are not eligible to receive Minimal Financial Assistance
- Are dependent on export performance: giving a subsidy to an organisation on the condition that it exports a certain quantity of its products to another country
- Are dependent on domestic inputs usage: giving a subsidy to an organisation on the condition that it uses a set percentage of UK components in its product
Project duration
3 to 12 months
Must start by 1 March 2027
End by 28 February 2028
Award value
In-kind support valued at up to £315,000.
Phase 1 does not provide a direct cash grant. Businesses selected for the programme may receive specialist technical and commercial assistance through an approved FOAK Support Plan.
Successful Phase 1 applicants may subsequently be invited to apply for Phase 2 grant funding.
Funding rates
Phase 1 provides up to 100% support for eligible project costs through in-kind technical assistance, subject to Minimal Financial Assistance (MFA) rules.
This competition does not use the standard feasibility study, industrial research or experimental development funding rates.
Eligibility criteria
- Projects can be led by a UK registered micro, small or medium-sized enterprise (SME) working alone
- Projects do not need to be collaborative, but successful applicants must work with Innovate UK and the FOAK Builder Technical Assistance Supplier (TAS)
- Subcontractors are not permitted
- All funded project work must be carried out within the UK
- Funded organisations must intend to exploit the results from or in the UK
- This grant is awarded as Minimal Financial Assistance (MFA) under the Subsidy Control Act 2022, with relevant de minimis assistance counting towards the £315,000 limit
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