CAN DO Innovation Green Heat Feasibility Call

Scotland’s green heat ambition

In October 2021 the Scottish Government published the heat and buildings strategy, which outlined Scotland’s ambition for decarbonising our heating systems and improving levels of energy efficiency in homes and buildings.

Out of its 2.5 million homes, Scotland has set an interim target to address the decarbonisation of 1 million residential and 50,000 non-domestic buildings by 2030.

Read about the heat and buildings strategy on GOV.SCOT

About this Scotland CAN DO innovation call

The Green Heat Innovation Support Programme is looking for innovative ways to deliver a decarbonised heat supply chain.

We’re looking for new products or processes that can improve the thermal performance of heated buildings at a price which is affordable to consumers. Solutions can be new or retrofitted, as long as they aim to improve heat sustainability in domestic and commercial buildings.

Funded by Scottish Government, and managed by Scottish Enterprise as a national Scotland CAN DO innovation challenge call, it's open to any eligible company in Scotland.

Grant support for 100% of the eligible project costs is available. This will allow companies to undertake detailed analysis, design, and assessment of the technical and commercial feasibility of their proposed solution over a period of three to four months. The project submission deadline is 22 December 2023.

Grants between £30,000 and £50,000 are available for companies in Scotland. The size of grant is based on the actual cost to the company. Each application is assessed according to the requirements provided in the challenge details.

Deadline for applications is 12pm on 7 July 2023.

Challenge brief

We want to support innovators across the value chain. We’re looking for solutions that can reduce energy demand and streamline supply, installation, and operation across the full range of associated technologies.

We’ve identified current innovation challenges and the following list outlines the main areas in which we want to support the development of solutions. However, it’s not exhaustive — get in touch if you have another idea that fits anywhere within this ever-expanding supply chain.

Areas of interest include, but are not limited to:

• Heat pumps: all types of heat pumps and heating systems components (including installation and operational innovation)
• Green heat systems: for example, innovative solutions for direct electric or electric boilers
• District heating networks: solutions to reduce disruption in 4th and 5th generation heat networks, as well as sources of generation and integration
• Geothermal: innovations in conventional, deep, and mine water geothermal — solutions that address well engineering, modelling, simulation, and corrosion will be considered
• Data and control management: solutions that improve the performance and reduce the costs of low carbon heat system monitoring and control
• Energy efficiency: retrofit and energy efficiency solutions, including high efficiency glazing and internal/external wall insulation — this challenge excludes construction materials or construction techniques
• Thermal energy storage: new materials and configurations for both sensible and latent heat storage solutions, materials and approaches for inter-seasonal storage systems (absorption systems and salt hydration, for example), and exploration into new ways of using existing hot water cylinders, along with heat pumps and smart monitoring systems

Challenge call objectives

Innovative technology solutions must help decarbonise heat and buildings, and help Scotland move towards a zero emissions future.

Your proposed solution should address the whole system — or sub-system challenges areas — as defined in the challenge brief.

Following a successful feasibility project, you must plan to develop and demonstrate prototype solutions in Scotland. You must intend to commercialise your solution to the challenge — this commercialisation must support the development of Scotland’s transition to a green economy.

Your project must also demonstrate long-term impact on Scottish jobs that support the green economy.

Other important information

Before applying, you should consider the following:

• Projects can be focused on developing innovative systems and/or sub-systems solutions at a Technology Readiness Level (TRL) 4-7 
• The funding will only cover the feasibility stage of your project
• Winning companies will be allocated a dedicated specialist for support throughout the project’s development
• Additional support and specialist advice will also be available to winning companies — advice on intellectual property, for example
• Winning companies will have the potential to get additional support to identify and bid for external funding for any subsequent prototype and demonstration project — they'll also be expected to join a show-and-tell event at the end of the project

Read more about TRL levels on UKRI.org

How much funding is available?

This call will offer grants of between £30,000 and £50,000.

Funding will be provided in line with the UK subsidy control rules on minimal financial assistance, as applicable at the time of the funding being awarded to you.

You'll be asked to provide details to us of any other recent funding received as minimal financial assistance. In line with UK subsidy control rules, no grant can be provided by us if it means that you would exceed your minimal financial assistance allowance of £315,000 within the current and past two financial years.

Read our minimum financial assistance guidance

Is my project eligible?

The funding will support the cost for you to conduct detailed design, technical, and commercial feasibility projects.

To be eligible, your feasibility project must:

• Be undertaking R&D feasibility on a product or process that clearly addresses the challenge brief
• Provide the technical detail and commercial case for subsequent prototype development and demonstration projects
• Aim to develop and commercialise innovative technology
• Last between three and four months
• Be completed by 22 December 2023
• Be largely carried out in Scotland — following the feasibility project, your aim should be to prototype and demonstrate the solution in Scotland

You must not have started the project, or committed to any project costs, before a grant funding contract is signed.

Is my business eligible?

This call is open to businesses of any size.

To be eligible, you must:

• Be registered or trading in Scotland or looking to set up a trading location in Scotland before 7 July 2023. It’s open to businesses across Scotland in the Scottish Enterprise, Highlands and Islands Enterprise, and South of Scotland Enterprise areas
• Be registered as a company with Companies House
• Be an individual business – we can’t accept applications from collaborations
• Be committed to fair working practices. Fair work is work that offers all individuals an effective voice, opportunity, security, fulfilment and respect. It also includes paying employees at least the real Living Wage (currently £10.90 in Scotland)
• Successful applicants will need to demonstrate a credible plan to reduce their own operational greenhouse gas emissions to net zero by 2045
• Provide us with information to check if you can receive support, such as details of any other recent funding received as minimal financial assistance within the current and past two financial years

Find out about Fair Work practices using the online tool

Eligible costs

Eligible costs for the feasibility projects include:

• Employee wages
• Contractor fees
• Consultancy costs
• Supplies and materials
• Travel expenses

Read our guidance on eligible project costs

How to apply

To apply, download and complete an application form. Send the completed form to enquiries@scotent.co.uk by 12pm 7 July 2023.

Download an application form (PDF, 188kB)

How will applications be assessed?

We'll consider several different factors, including:

• How well the proposal meets the challenge call objectives
• Its impact on Scottish jobs
• Its level of innovation
• The robustness of the project plan
• The experience and capability of the team
• Justification of budgets and value for money
• The commercial potential of the proposal

Timescales

Important dates to note are:

• Call opens: 9 May 2023
• Call closes: 12pm, 7 July 2023
• Notification of results: 31 July 2023
• Contract issued by: 25 August 2023
• Earliest project start date: 28 August 2023
• Latest project end date: 22 December 2023