1. Wetland Biomass to Bioenergy Competition Dr Megan Cooper DECC Energy Innovation Delivery Team

2. DECC’s Mission DECC’s Mission is to power the country and protect the planet. DECC exists to head off two risks: – a shortfall in secure, affordable energy supplies – catastrophic climate change

3. The Spending Review of November 2010 announced funding of over £200 million for low-carbon technologies over the next four financial years from April 2011 £120m schemes already published. Plans are being developed for the allocation of the remainder of the innovation funding. Investment will focus on those technologies and programmes where there are clear market failures and where intervention will have greatest impact on meeting the Government’s climate change and energy objectives. We need to work alongside other funding bodies to understand knowledge gaps and opportunities for collaboration – total UK Government spend over this SR period in region of £800m. DECC Innovation Funding

4. Our criteria for funding Support will be provided where: – the innovation will significantly contribute to the achievement of DECC’s energy and climate policy goals; and – there is clear evidence that the innovation need that would otherwise be unmet, i.e. where there are market failures or barriers that prevent/limit private sector investors; and other actors (UK or international) have not, or are unlikely to, provide sufficient support; and the potential benefits can be shown to be likely to exceed the costs. The focus of the portfolio will be primarily on the later innovation stages i.e. late stage development and partial and full scale demonstration (TRLs 5/6 to 8/9). The portfolio may however in exceptional circumstances fund innovation at the earlier stages, where other actors cannot or will not do so. It may also collaborate with other funders who are active at earlier TRLs, while seeking to maintain its own focus on the later TRLs. Support is legal under EU law

5. ~£800million available for energy R&D Business Innovation and Skills Research Councils Energy Technologies Institute Technology Strategy Board Carbon Trust Department for Energy and Climate Change Central Government Policy Department Demonstration Applied research & development Basic Research Pre-commercial deployment (RHI, RO, FIT, EMR, etc) DECC < < < < < < < < < < < < < < < < < < < Feedback loop < < < < < < < < < < < < < < < < < < < Technology push > > > > > > > > > > > > > > > > > > > > > > > > > > > < < < < Market pull Demonstration

6. The challenge Increase the availability of renewable, sustainable bioenergy whilst addressing the challenges of wetland management. Specific objectives include: Optimisation of wetland management processes across challenging UK sites, in particular: – the Somerset Levels and Moors – the Broads/Fens/Suffolk Coast Demonstration of an efficient feedstock conversion technology that utilises wetland biomass arisings Integration of harvesting and conversion processes into an efficient cost effective system that can be used by regional land owners across the UK and that will provide energy either locally or nationally. Wetland Biomass to Bioenergy Competition

7. The challenge for today Encourage collaboration across the supply chain to deliver an integrated solution Provide sufficient information to encourage successful applications Wetland Biomass to Bioenergy Competition

8. Competition Details Small Business Research Initiative Pre commercial procurement of R&D Risk - benefit sharing approach at market conditions – Output and IPR reside with contractor, rights of use for DECC – Fair market value should reflect price reduction compared to exclusive development projects Competition in 3 phases with down selection at each stage – Phase 1 assessed via application process – Phases 2 & 3 assessed via outputs from Phases 1 &2 Separation of R&D phase from commercialisation phase Open to all sizes of organisation

9. Competition Details Support Available Funding of up to £2m available until March 2015 100% procurement of eligible R&D costs Support from Wetland Consortium – Single point of contact to access advice on wetland conservation management – Assistance and practical support setting up trials on particular sites Eligible Costs Detail on eligible / ineligible costs provided in guidance notes – Labour, materials, sub-contracts, T&S, indirect costs

10. Competition Details Scope The design, development and on-site demonstration of an efficient end to end bio-energy system that utilises biomass arisings from wetland management activities to generate bio-energy Optimisation of wetland harvesting activities in challenging UK wetland areas and in a manner sympathetic to conservation requirements Effective use of the specific biomass arisings Reeds, rushes, fen, grass Willow, alder, birch (optional). At least one innovative step in the specified process All forms of bio-energy.

11. Competition Details Key Dates (Phase 1) Phase 1 (system design and life cycle analysis) Competition opens8 th October 2012 Briefing and industry engagement event8 th October 2012 Deadline for applications14 th November 2012 Notification of Phase 1 assessment resultsDecember 2012 Phase 1 beginsJanuary 2013 Deadline for design and analysis reportMarch 2013

12. Competition Details Key Dates (Phases 2 & 3) Phase 2 (preliminary demonstration and trials) Notification of phase 2 project selectionApril / May 2013 Phase 2 development commencesMay/June 2013 Phase 2 delivery and monitoringJune 2013 to March 2014 Phase 2 development reportMarch 2014 Phase 3 (final development, demonstration and trials) Phase 3 development commencesApril - June 2014 Phase 3 delivery and monitoringApril 2014 – Feb 2015 Final reportFebruary 2015

13. Application Details All forms and details available on DECC website (under funding opportunities) Please read guidance notes and application form carefully before completing and answer ALL questions asked. DEADLINE (for completed application form and any supporting documents): 12:00pm, 14 November 2012 Email digital copy to: wetlandbiomass@decc.gsi.gov.ukwetlandbiomass@decc.gsi.gov.uk Maximum email size is 10MB - if needed break submission down into smaller parts. 1 signed hard copy to be sent to DECC within 10 working days of submitting your electronic application.

14. Assessment 2 stage assessment process for Phase 1 projects. Eligibility To qualify for funding projects must: Describe all 3 stages of the project Be in scope and cover the end to end bioenergy process Be costed at a fair and reasonable market value and demonstrate value for money that reflects the risk-benefit sharing approach of pre commercial procurement activities Be led by a single business with evidence of strong collaboration across the supply chain

15. Assessment Evaluation Proposals meeting the eligibility criteria will be assessed using the following criteria: Technical approach / innovation Project plan Bioenergy potential Conservation considerations Exploitation plans Cost effectiveness DECC acknowledges that details on efficiencies, cost analyses etc may be indicative at this stage. Phase 1 projects will develop these analyses in more detail.

16. Other requirements Intellectual Property: Suppliers will retain the IP generated from the project Expected to identify and protect patentable knowledge within 3 years of its creation DECC require a UK wide, irrevocable, royalty-free, non-exclusive licence, together with the right to grant sub-licences, to use or publish information, data, results, outcomes or conclusions arising from the Project and any foreground technology

17. Other requirements Publication of Results: (whilst maintaining confidentiality of commercially sensitive information) After contract negotiation – Identity of the participant and its partners – Type of technology involved – Summary details of the aims and expected outcomes of the project – The size of the financial transaction Throughout project delivery – Summary of funded activities completed and the outcomes achieved;

18. Other requirements Reporting Project Delivery Stage: Reporting to track project progress and ensure payments are made according to a schedule of milestones. Project evaluation Participate in evaluation of scheme during and for several years after final grant payments to assess whether funds have been used effectively. Data Gathering & Knowledge Sharing To benefit the industry as a whole and avoid repetition of costly or time- consuming mistakes – no formal knowledge sharing requirements but one of the selection criteria.