Business grants

CO2 Utilisation Challenge

CO2 Utilisation Challenge

CO2 utilisation offers economic opportunity for Scotland. It reduces emissions, enables the circular use of resources, as well as sustainable manufacturing practices. If you're developing technology that will commercialise CO2, apply to this challenge for funding support.

About the challenge 

Scotland’s CO2 utilisation sector is new and emerging. The aim of this challenge is to support Research and Development (R&D) to assist companies in developing technology that will lead to new commercial uses for CO2, and the creation of jobs, as part of our journey to a low carbon economy.

Run by Scottish Enterprise on behalf of Scottish Government, the funding is being provided as part of its Programme for Government 2020/21 commitments.

Suitable projects may use chemical, biological reactions or mineralisation to transform CO2 into a product or component with commercial value. Projects that focus on products and processes with low carbon intensity will be prioritised.

The challenge will support projects to develop and test products and to enable infrastructure developments at emissions sources for use in your project. However, projects with a strong focus on carbon capture technology are out of scope, as are projects which do not involve CO2 transformation – using CO2 as a solvent or working fluid, for example.

How much funding is available?

The challenge grants are contributory covering up to 50% of incurred eligible costs following submission of evidence of the successful applicant’s expenditure and are expected to be in the region of £150,000 - £500,000. Larger grants may be available for exceptional projects.

Am I eligible?

The grant is only available to companies based in Scotland, or those with the goal of establishing a presence within Scotland to carry out research and development and create jobs.

To secure an R&D grant, companies will be legally obligated to create and/or safeguard jobs throughout the project and maintain these positions for a period of up to 24 months after the project is completed.


Funding is available from 11 April 2022 until 31 March 2024

Make an expression of interest

Enter your details into the fields below and we'll send you an expression of interest form.

If you’re successful, you’ll be invited to submit a full grant application.


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