The challenge holder is seeking innovators to help Southwest Wales unlock the full potential of its circular economy by transforming how CO₂ is captured, mapped, and reused across the region.
Southwest Wales generates significant industrial CO₂ that too often leaves the region or is transported inefficiently. By developing smarter ways to optimise the mapping and routing of CO₂ supply and demand, this challenge aims to keep valuable industrial by products within Wales, turning CO₂ from a waste stream into a regional resource.

This challenge is part of the Southwest Wales Net Zero Industry Launchpad iX (Innovation Exchange) pilot, enabling selected innovators to access Innovate UK grant funding of up to £25,000 to deliver a 3 month pilot project through the iX programme.

The Net Zero Industry Launchpad is using the Innovate UK Business Connect&nbsp;<a href="https://iuk-business-connect.org.uk/programme/innovation-exchange/">Innovation Exchange</a>(iX) platform to offer an exciting new pilot competition using the iX platform to support challenges that benefit or impact on Southwest Wales.&nbsp;&nbsp;
The aim of this competition is to support outstanding innovation projects that will impact on Southwest Wales. The pilot - South West Wales Launchpad Net Zero iX Challenges, aims to foster collaborative partnerships between a challenge holder &amp; solution provider to deliver a project that that will accelerate the adoption of industrial circular economy, net zero or decarbonisation innovations within and across sectors for the Net Zero Industry launchpad in Southwest Wales.
The challenge holder has developed modular CO₂ capture units that can be deployed quickly and scaled horizontally across industries. The UK currently faces a declining CO₂&nbsp;supply chain, due to the closure of several plants, and rising demand, especially in sectors like e-fuels, concrete, breweries, and hospitals. Existing solutions are centralized, costly, and slow to deploy, prompting the challenge holder to pursue a decentralized, scalable approach.

Background

In Southwest Wales, CO₂ is a costly, unreliable input but also a locally produced by-product that is often vented, wasting value and adding avoidable emissions. Transport drives most delivered costs (87%), and long-haul logistics leave SMEs exposed to shortages and price spikes, even in sectors like brewing where sites can emit more CO₂ than they consume but cannot practically use or share it.
The regional challenge is to turn this fragmented landscape into dependable local CO₂ reuse loops using the challenge holder&rsquo;s capture technology. The blocker is planning risk. Despite existing datasets, it is not possible to clearly identify which sites and sub-networks are most impactful, how these operate under real-world constraints such as local energy availability and variable demand, how to move CO₂ efficiently, or what evidence is sufficient to unlock Investment.
Large infrastructure rollouts move faster and cost less when decisions are based on shared, defensible, data-driven planning rather than one-off studies. The question is how to create that planning capability for Southwest Wales.
The challenge holder is seeking a geospatial planning tool for the Southwest Wales industrial cluster that decides where and how CO₂ capture units should be rolled out across the region and how CO₂ can most efficiently move between sites to local users. The intent is to use open and partner data to produce a phased, implementable rollout plan with costs, carbon impact, and an evidence pack for investment and permitting.
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If selected, the solution provider will be supported to apply for up to &pound;25,000 grant funding to deliver a 3‑month project through the Innovation Funding Service (IFS). The funding will cover a 3-month project, the details of which will need to be refined with the challenge holder.

The Challenge

The solution must / should:
<ul>
<li class="MsoNormal">Map supply and demand sites for CO₂ in Southwest Wales.</li>
<li class="MsoNormal">Provide high-level and detailed data on CO₂ streams, impurities, volumes, and flow rates.</li>
<li class="MsoNormal">Enable users (corporates) to input their site data and receive regional impact and ROI calculations.</li>
<li class="MsoNormal">Prioritize biogenic sources and support future expansion to other clusters.</li>
<li class="MsoNormal">Provide a ranked top &lsquo;5&rsquo; first carbon capture deployment sites in SWW, recommend host sites, CO₂ users</li>
<li class="MsoNormal">Visualise outputs with a map and table showing the CO₂ source to user routes and allocated CO₂ volumes</li>
<li class="MsoNormal">The Solutions will ideally also;</li>
<li class="MsoNormal">Optimise on distance, source capacity, user demand, and selected objective (minimum cost, minimum emissions, maximum demand served)</li>
<li class="MsoNormal">Routing feasibility for top deployment zones (distance, time etc)</li>
<li class="MsoNormal">CSV upload (X sites, Y parameters, Z per year)</li>
<li class="MsoNormal">Site or company simulation (fit, savings, emissions)</li>
<li class="MsoNormal">Self-serve site view where company can search or select site to see data (emissions capture potential, demand)</li>
</ul>

Functional Requirements

The solution should deliver a deployable v1 web tool with;
<ul>
<li class="MsoNormal">Web app interface, highly intuitive and easy to use.</li>
<li class="MsoNormal">Open source preferred, with potential for gated access to more detailed data.</li>
<li class="MsoNormal">Capable of integrating with the challenge holder&rsquo;s future AI and hardware control systems via API.</li>
<li class="MsoNormal">Must support updates and scalability for future business needs.</li>
<li class="MsoNormal">Regional Southwest Wales roads/routing GIS layer pack</li>
<li class="MsoNormal">Configurable routing and network optimisation (carbon capture, aggregation, transport)</li>
<li class="MsoNormal">Scenario dashboard (cost, emissions, deliverability)</li>
<li class="MsoNormal">Audit trail of assumptions / weights</li>
<li class="MsoNormal">The tool must run end-to-end on example data and a small initial set of Ventrix and partner sites.</li>
</ul>

Technical Requirements

The solution must/should:
Initial deployment focused on South West Wales cluster.
Use open source and publicly available data; private data must be anonymized.
Hosted on the challenge holder&rsquo;s website, with potential for embedding and integration.

Operating Conditions

The solution must/should not:
Solutions that are not web-based or require users to download separate apps.
Approaches that do not allow for open source or future scalability.
Any solution that does not support business case calculations or regional mapping.
IUK cannot fund projects that:
<ul>
<li>involve primary production in fishery and aquaculture</li>
<li>involve primary production in agriculture</li>
<li>are not allowed under <a href="https://www.ukri.org/councils/innovate-uk/guidance-for-applicants/general-guidance/funding-rules/#contents-list:~:text=an%20external%20link.-,De%20minimis%20aid,-De%20minimis%20aid">de minimis regulation restrictions</a></li>
<li>are not eligible to receive <a href="https://www.ukri.org/councils/innovate-uk/guidance-for-applicants/general-guidance/funding-rules/#contents-list:~:text=Minimal%20Financial%20Assistance%20(MFA)%20and%20EU%20de%20minimis%20awards">Minimal Financial Assistance</a></li>
<li>are dependent on export performance, for example, giving an award to a baker on the condition that they export a certain quantity of bread to another country.</li>
</ul>

Out of Scope

Solutions must fit within a maximum R&amp;D budget of &pound;25,000 and be completed within a 3 month period.
No additional funding from the challenge holder; the project scope is designed to fit this budget.

Cost Requirement

Successful applicants will be given an opportunity to pitch to challenge holder. The winning applicant, as selected by the company, will then be eligible to apply for &pound;25k to kickstart the development of the proposed solution through a 3 month project. Selected solutions will be trialled by the challenge holder with potential for further adoption if succesful.
The benefits package for a successful applicant may also include:
<ul>
<li>Support from Innovate UK Business Connect</li>
<li>Support in the development of a prototype or pilot</li>
<li>Technical support</li>
<li>Invitation to attend or present at Innovate UK Business Connect events</li>
<li>A potential business collaboration</li>
<li>Investor introductions (if investment is required)</li>
</ul>
Support if any Innovate or similar competitions are relevant.

Rewards & Market Opportunity

<ul>
<li>Challenge launch: 24th February 2026</li>
<li>Deadline for applications: 7th April 2026</li>
<li>Selection and notification of finalists: 13th April 2026</li>
<li>Pitch Day: 16th and 17th April 2026</li>
<li>Confirm selected solution provider: 21st April 2026</li>
<li>Submission to Innovation Funding Service (IFS): Between 21st - 28th April 2026</li>
<li>Project length: 3 months</li>
</ul>

Timescales

To lead a project as a solution provider your organisation must be a UK registered :
<ul>
<li><a title="https://gbr01.safelinks.protection.outlook.com/?url=https%3a%2f%2fwww.gov.uk%2fgovernment%2fpublications%2flife-of-a-company-annual-requirements%2flife-of-a-company-part-1-accounts%23micro-entity&amp;data=05%7c02%7cneil.pavitt%40iuk.ukri.org%7c81765b737f4a43b" href="https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fpublications%2Flife-of-a-company-annual-requirements%2Flife-of-a-company-part-1-accounts%23micro-entity&amp;data=05%7C02%7CNeil.Pavitt%40iuk.ukri.org%7C81765b737f4a43b8edb108dd84183e0f%7C8bb7e08edaa44a8e927efca38db04b7e%7C0%7C0%7C638811961856002408%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=%2BRp6AVtlApYU251MDQpgZ5oXVj05K1DkXV9r%2FT0%2Bm58%3D&amp;reserved=0" target="_blank" rel="noopener">micro, small or medium sized enterprise</a> (SME's)</li>
<li>academic institution</li>
<li>research and technology organisation (RTO)</li>
<li>community interest company (CIC) or charity</li>
</ul>
Subcontractors are allowed in this competition
Subcontractors can be from anywhere in the UK and you must select them through your ususal procurement process.
Your project must:
<ul>
<li>have a grant funding request of up to &pound;25,000</li>
<li>last for three months</li>
<li>Not start before the 1st June 2026</li>
<li>Must end by 31st March 2027</li>
</ul>
Any funded organisation needs to carry out their project work in the UK and must intend to exploit the project results from or in the UK.
Applications will be assessed on: 
<ul>
<li>Relevance to the defined challenge</li>
<li>Benefit of implementation</li>
<li>Feasibility/economic viability</li>
<li>Innovative nature</li>
<li>Ability to launch in line with expected timescales</li>
<li>Credibility of applicant company</li>
<li>Coherence of the proposed business model</li>
<li>Development potential</li>
<li>Maturity of the solution</li>
<li>Suitability for the intended geographic market</li>
</ul>
If selected, the solution provider will be supported to apply for up to &pound;25,000 grant funding to deliver a 3-month project through the Innovation Funding Service (IFS)
Applicants will need to upload the following documents to IFS once notified:
<ul>
<li>Project plan</li>
<li>Project costing - only eligible costs will be funded, please read the Innovate UK Costs Guidance for further information.</li>
<li>Minimal Financial Assistance (and de minimis where applicable) declaration (details can be found <a href="https://www.ukri.org/councils/innovate-uk/guidance-for-applicants/general-guidance/funding-rules/" target="_blank" rel="noopener">here)</a></li>
</ul>
Minimal Financial Assistance:
Grant funding in this competition is awarded as Minimal Financial assistance (MFA). This allows public bodies to award up to &pound;315,000 to an enterprise in a 3-year rolling financial period. If your application is successful and you are invited to apply for grant funding you will be asked to declare previous funding received by you. This will form part of the financial checks ahead of Innovate UK making a formal grant offer.

Eligibility & Assessment Criteria

Existing background IP associated with a potential solution will remain with Solution Provider(s). Where any new IP generation is envisaged, it will be subject to the mutual IP agreement of the solution provider(s) and challenge holder.
Any commercial deployment of a transferred solution or newly developed solution, through licensing, joint venture, partnership, or direct investment, will be subject to the commercial agreement between the solution provider(s) and challenge holder.
Where necessary, a non-disclosure agreement (NDA) may be signed to uphold confidentiality in the engagement between the solution provider(s) and challenge holder. (This would be expected to be after company selection, it is suggested that details of IP be not disclosed, focus on the outcomes of the technology proposed).
Innovate UK and Innovate UK Business Connect do not take any share of IP ownership or enter commercial ventures through the iX programme.
The challenge holder is open to exclusive licensing for CO₂ use, with solution providers able to adapt the architecture for other applications.

IP & Potential Commercial Route

The application form for this challenge will require applicants to provide company information and answer 3 questions - Idea Summary, Technology Readiness and Intellectual Property &ndash; each with a limit of 300 words.
Additionally, the following documents must be attached for your application to be considered: 
<ul>
<li>Project plan</li>
<li>Project costings &ndash; only eligible costs will be funded, please read the Innovate UK <a href="https://www.ukri.org/councils/innovate-uk/guidance-for-applicants/costs-we-fund/costs-guidance-for-non-academic-organisations/">Costs guidance</a> for further information</li>
</ul>
We recommend that you complete the application form in Google Chrome as other browsers may have compatibility issues. The application form does not need to be completed in one session and can be saved for future edits. Please ensure that you toggle &ldquo;Stage Complete&rdquo; for each section before submission. Note that you will no longer be able to edit your application once you have clicked &ldquo;Submit Idea&rdquo; at the bottom of the Summary page.

Application & Technical Guidance

By submitting an application to this Innovation Exchange (iX) challenge, you acknowledge and agree that the information you provide will be shared with Innovate UK Business Connect and the challenge holder for the purposes of assessment and selection. All information submitted will be handled in confidence and shared only with those involved in the assessment and selection process under appropriate confidentiality expectations.
Please consider the level of detail you share in your submission to ensure it aligns with your own internal confidentiality or disclosure policies.
A selected panel of assessors will review and score your application. The panel of assessors will meet and agree a consensus score. Successful solutions will be selected by the challenge holder. Success will be based upon total consensus scores, a portfolio approach and capacity within the challenge holder&rsquo;s organisation to carry out the projects.
For more information on how Innovate UK Business Connect handles personal data, please refer to our <a href="https://iuk-business-connect.org.uk/privacy-policy/" target="_new">Privacy Policy</a>.

Enabling Regional CO₂ Utilisation in Southwest Wales through Geospatial Intelligence

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Enabling Regional CO₂ Utilisation in Southwest Wales through Geospatial IntelligenceCopy Link

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Enabling Regional CO₂ Utilisation in Southwest Wales through Geospatial Intelligence