£3M DESNZ Funding for Sustainable Solutions in Chemicals, Construction, and Automotive

Businesses across the chemicals, construction, and automotive sectors in the UK now have the chance to secure significant government funding to support innovative resource efficiency solutions. The Department for Energy Security and Net Zero (DESNZ), in partnership with Innovate UK, has launched a new round of its Contracts for Innovation competition—offering up to £3 million in funding.

Competition Now Open – Apply by 11:00 AM, 27 August 2025

The competition window is officially open and will close at 11:00 AM on Wednesday 27 August 2025. Eligible businesses can apply for contracts worth between £50,000 and £300,000 (inc. VAT) to support real-world demonstrations and impact validation reports of new technologies and products.

This scheme is ideal for organisations developing operationally ready innovations (Technology Readiness Levels 5–7) that can demonstrate a clear resource efficiency benefit. This might include reduced waste, improved material use, or circular design in areas such as:

• Low-carbon or recycled materials
• Lean and lightweight product design
• Design for disassembly or circular economy models
• Reuse, remanufacture, or recycling processes

Please note: Heat and energy efficiency projects are not in scope for this competition round.

Who Can Apply?

The competition is open to any type or size of organisation, including businesses, research institutions, and not-for-profits. Applications must address opportunities in at least one of the target sectors:

• Chemicals
• Construction and construction products
• Automotive

Projects must be delivered between 1 November 2025 and 31 March 2026, and must result in a detailed impact validation report. This report should be informed by a recent or current trial or demonstration, either conducted as part of the project or completed within the last five years.

What is Contracts for Innovation?

This programme, formerly known as the Small Business Research Initiative (SBRI), offers fully funded contracts rather than standard grants. Successful applicants will receive a 100% funded contract from DESNZ and Innovate UK, covering all eligible project costs up to £300,000.

These projects are intended to help validate the commercial and environmental impact of resource-efficient innovations and support their pathway to market.

Apply Now

If your organisation has a promising solution that could transform efficiency in materials use or waste reduction, now is the time to apply.

Visit the Contracts for Innovation page to access full applicant guidance and submit your proposal.

Have questions or want to discuss a potential application? 

Watch the full video briefing on Contracts for Innovation to learn more about eligibility, funding, and how to apply here and view presentation slides here.

Alternatively, you can contact Innovate UK directly at [email protected].

Further Links

• To view the applicant guidance and make an application for funding, please visit the competition page.
• The scope of the competition is designed to help accelerate resource efficiency opportunities identified in the DESNZ Unlocking Resource Efficiency research.