Innovate UK’s MSI: SME Resource and Energy Efficiency – Feasibility Studies Grant Program

The focus areas of this competition are resource efficiencies including raw material waste, production process waste, packaging waste (including in-process single-use materials), maintenance or servitisation waste (including fluids and components), utilities waste, and end of life waste; and energy efficiencies including boilers and steam, air compressors or vacuum, motors, drivers, pumps or hydraulics, induction or welding, chilling or freezing, spray, extraction or dryers, ovens, kilns or furnaces, and heavy machinery or presses.

This competition aims to explore new industrial digital technologies (IDTs) that improve the sustainability, resilience, and productivity of UK micro, small, or medium-sized enterprise (SME) manufacturers by enhancing energy or resource efficiency. Projects must develop affordable, easy-to-use, and scalable digital solutions, demonstrating how innovations can improve energy or resource efficiency in a manufacturing environment. Feasibility studies under this strand should carry out research into and development of innovative digital solutions, showing clear potential for improvement in efficiency, scalability, and affordability.

Projects must have total eligible costs between £25,000 and £150,000, lasting between three and six months, starting on 1 April 2026 and ending by 30 September 2026. The lead organisation must be a UK-registered SME operating as a technology developer, while collaborations may include SMEs operating as manufacturers, academic institutions, research organisations, or research and technology organisations. Funded projects must be carried out in the UK and aim to exploit the results from or in the UK.

Eligible feasibility studies can receive up to 70% funding for micro and small organisations and up to 60% for medium-sized ones. Research organisations conducting non-economic activity can share up to 30% of total eligible project costs, with RTOs and research organisations eligible for 100% of their costs and academic institutions up to 80% of full economic costs. Innovate UK encourages collaborations that include multiple SME manufacturers across manufacturing sectors and locations.

Projects must deliver outputs that demonstrate technical, operational, and financial feasibility, with a clear path toward industrial research to test the proposed solution. Final outputs should include an executive summary, technical and market analysis, financial feasibility, marketing and commercialisation strategy, and draft product specifications. Innovate UK will adopt a portfolio approach to ensure funding distribution across various technologies, sectors, and regions.

For more information, visit GOV.UK.