This opportunity offers:
- Direct involvement in a live, pilot‑scale use case, enabling partners to validate both technical and commercial assumptions in a real‑world setting
- Access to an operational R&D environment, supporting informed, practical design decisions and clearer pathways to scale‑up
- Potential progression to an on‑site pilot demonstration following the funded feasibility phase
- Opportunities for longer‑term commercial collaboration or follow‑on funding, subject to the outcomes of the study
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 <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.
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 company with this challenge is an energy technology company developing waste-to-hydrogen and waste-to-energy systems that use thermal treatment of non-recyclable waste. The company operates an R&amp;D pilot facility and is advancing commercial projects in the UK and internationally.
At the pilot plant, waste is thermally treated to produce a syngas containing hydrogen, methane, carbon monoxide, and carbon dioxide. Currently, this gas is analysed and then flared, as conventional hydrogen separation technologies are designed for much larger industrial flow rates and are therefore not viable at pilot scale.
Developing a small-scale hydrogen separation solution would enable hydrogen to be recovered and utilised during pilot operations.
This capability would:
<ul>
<li>Demonstrate the hydrogen potential of different waste feedstocks</li>
<li>Enable local testing and potential offtake of hydrogen produced at pilot scale</li>
<li>Improve the commercial viability of small-scale and modular waste-to-hydrogen systems</li>
<li>Support future deployment of decentralised waste-to-hydrogen facilities across South West Wales and beyond</li>
</ul>

Background

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At pilot and small‑scale waste‑to‑hydrogen facilities, hydrogen‑rich syngas is produced as part of the waste pyrolysis process. While hydrogen separation and purification technologies are well established at large industrial scales, these solutions are typically designed for high, continuous gas flows and centralised hydrogen production.
Conventional hydrogen separation technologies &mdash; such as large‑scale Pressure Swing Adsorption (PSA) systems &mdash; are generally oversized, costly, and operationally unsuitable for pilot‑scale environments. Their capital cost, footprint, operating assumptions, and continuous‑run requirements make them poorly aligned with small, modular facilities that operate intermittently, handle variable gas compositions, and prioritise flexibility over throughput.
As a result, at pilot scale, hydrogen contained within syngas streams is often analysed and flared rather than recovered and utilised. This represents a missed opportunity to demonstrate hydrogen yields from different waste feedstocks, test local hydrogen offtake, and strengthen the commercial case for decentralised waste‑to‑hydrogen systems.
The challenge, therefore, is not simply to downsize an existing industrial solution, but to rethink how hydrogen separation could be approached in a low‑flow, low‑pressure, variable‑operation context. There may be alternative separation principles, hybrid approaches, or novel system architectures that are better suited to the realities of pilot‑scale waste‑to‑hydrogen facilities.
The holder of this challenge is seeking innovative thinking that can address this gap &mdash; enabling hydrogen separation in environments where existing commercial solutions are not currently viable &mdash; and in doing so, improve the performance, flexibility, and future scalability of small and modular waste‑to‑hydrogen systems.
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Project scope and expectations
This Innovation Exchange project is a &pound;25,000, three‑month funded feasibility study. Solutions are expected to focus on the design of realistic, pilot‑scale hydrogen separation solutions, supported by appropriate analysis, modelling, or evidence to demonstrate technical feasibility.
The project will not involve full system build, installation, or commercial deployment during the funded period, but should clearly articulate a credible pathway towards pilot demonstration and future scale‑up.
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.
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The Challenge

Proposed approaches should demonstrate how they could enable hydrogen separation and utilisation within a pilot‑scale waste‑to‑hydrogen environment, recognising the operational constraints and opportunities of small and modular facilities.
Solutions should be capable of:
<ul>
<li>Operating effectively at low gas flow rates, representative of pilot‑scale systems (currently ~35 kg/hour, with potential future operation up to ~170 kg/hour)</li>
<li>Managing variable syngas compositions, reflecting changes in waste feedstock and operating conditions</li>
<li>Functioning within low‑pressure, pilot‑scale environments, without reliance on industrial‑scale compression or continuous operation assumptions</li>
<li>Supporting intermittent operation, including start‑up and shut‑down cycles typical of R&amp;D and pilot facilities</li>
<li>Being modular or adaptable in nature, with a credible pathway to replication or deployment across multiple small or decentralised sites</li>
<li>Demonstrating practical integration potential with existing pilot infrastructure, including space, interfaces, and operational constraints</li>
<li>Being designed with cost‑effectiveness, simplicity, and manufacturability in mind, recognising the economic sensitivities of small‑scale deployments</li>
<li>Minimising physical footprint and system complexity where possible, to support installation within constrained pilot facilities</li>
</ul>
Proposals should clearly articulate how the approach addresses the limitations of existing large‑scale hydrogen separation solutions in this context, and how it could improve the feasibility, flexibility, or performance of hydrogen recovery at pilot scale.

Functional Requirements

<div>
Proposals should demonstrate a technically credible approach to enabling hydrogen separation from pilot‑scale waste‑derived syngas streams, supported by appropriate analysis, modelling, or validation activities.
Approaches should be capable of:
<ul>
<li>Addressing separation of hydrogen from mixed syngas streams, typically containing hydrogen, methane, carbon monoxide, and carbon dioxide</li>
<li>Operating under pilot‑scale conditions, including:
<ul>
<li>Low operating pressures - conditions comparable to commercial systems, but at significantly lower flow rates&nbsp;(30-170kg/h vs 1300 kg/h)</li>
<li>Moderate temperatures typical of treated and cooled syngas streams</li>
<li>Variable gas composition and quality</li>
</ul>
</li>
<li>Demonstrating technical feasibility through appropriate methods such as modelling, simulation, process analysis, laboratory data, or prior operational evidence</li>
<li>Considering integration with existing pilot‑scale monitoring and gas analysis systems, including interfaces, data requirements, or operational compatibility</li>
<li>Identifying and addressing hydrogen‑specific safety considerations, including material compatibility, containment, and safe operation within a hydrogen‑handling environment</li>
<li>Providing a clear explanation of key technical assumptions, limitations, and performance expectations, appropriate to a design and verification‑focused project</li>
<li>Outlining how the proposed approach could be adapted or scaled for deployment at other small or modular waste‑to‑hydrogen facilities, if successful</li>
</ul>
The challenge holder does not prescribe a single hydrogen purity requirement; however, applicants should clearly state their&nbsp;assumed hydrogen purity targets and intended end‑use scenarios within their proposed design.
A target purity of up to 99.999% (fuel‑cell quality) would be desirable. However, the challenge holder would also consider lower purity specifications aligned with ISO 14687 Hydrogen Fuel Quality standards, where this significantly reduces parasitic energy demand, system complexity, or cost.
Intended end use is expected to focus on proof‑of‑concept hydrogen supply at pilot scale, which may include direct supply to a user or supply via intermediate storage (e.g. tanks).
Proposals should focus on technical robustness and practicality at pilot scale.
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Technical Requirements

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The solution must / should:
<ul>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Be suitable for installation and operation within an industrial pilot‑scale research facility</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Operate with mixed syngas streams generated from the pyrolysis of a range of waste feedstocks</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Be designed too perateunder low‑flow and low‑pressure conditions, typical of pilot‑scale waste‑to‑hydrogen systems</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Accommodate variable gas composition and intermittent operation, reflecting a non‑continuous R&amp;D environment</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Operate at moderate temperatures (below 65 &deg;C), consistent with treated syngas streams cooled via water quenching</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Be compatible with common syngas components, including hydrogen, methane, carbon monoxide, and carbon dioxide, and consider the presence of trace impurities arising from waste‑derived&nbsp;feedstocks.</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Be designed to integrate with existing pilot infrastructure while&nbsp;remaining non‑invasive to core pyrolysis systems wherever possible.</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Be suitable for operation within an industrial hydrogen‑handling environment, incorporating&nbsp;appropriate safety and pressure system considerations.</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Allow for safe start‑up, shutdown, and testing procedures&nbsp;appropriate for pilot‑scale hydrogen separation and experimental operation.</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Comply with&nbsp;relevant safety, pressure, and materials standards, including consideration of hydrogen compatibility and risk management.</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">Have a compact footprint, likely no larger than approximately&nbsp;10&rdquo; x 10&rdquo;, although sensible and well‑justified solutions outside this envelope will be considered.</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">The system would likely need to be located externally within the site yard, and applicants should consider environmental exposure, access, and integration implications within an outdoor industrial setting.</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">The hydrogen separation solution may be integrated into the existing site power supply, and applicants should outline expected power requirements and any assumptions regarding electrical integration.</li>
<li class="Paragraph SCXW76040492 BCX8" lang="EN-GB" xml:lang="EN-GB">The preferred configuration would be a freestanding, skid‑mounted system, allowing flexibility in positioning and minimising integration complexity with existing pilot infrastructure.</li>
</ul>
</div>

Operating Conditions

<div>
This challenge will not support proposals that:
<ul>
<li>Focus on large‑scale commercial hydrogen separation systems that are unsuitable for pilot‑scale or low‑flow operation.</li>
<li>Are limited to laboratory‑scale or theoretical concepts with no credible pathway to pilot‑scale application.</li>
<li>Propose full system build, manufacture, installation, commissioning, or operational deployment within the funded project period. Include detailed regulatory approval processes or full safety case development, beyond design‑level considerations.</li>
<li>Introduce approaches that significantly increase risk to people, infrastructure, or the environment.</li>
</ul>
&nbsp;
The Innovation Exchange award is intended to support design‑stage feasibility and verification activities only, appropriate to a &pound;25,000, three‑month project, while informing future pilot demonstration beyond the funded period.
</div>
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">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

<div>
The indicative funding available for this Innovation Exchange project is up to &pound;25,000, to be delivered over a three‑month period. This funding is intended to support design‑stage feasibility and verification activities only. Proposals should be scoped proportionately to the available budget and timeframe. Capital expenditure, full system build, installation, or operational deployment costs are not expected to be covered within this award and should be considered outside the scope of the funded project.
As part of the design activity, applicants should work towards a solution concept with a target indicative build cost of less than &pound;75,000 for a pilot‑scale system. This target is intended to inform affordability and commercial viability considerations and does not imply that build or procurement will take place within the funded project.
</div>

Cost Requirement

Successful applicants will be given an opportunity to pitch to CWM Environmental Ltd. The winning applicant, as selected by the company, will then be eligible to apply for &pound;25k grant funding to kickstart the development of the proposed solution through a 3 month project.&nbsp;
The benefits package for a successful applicant may also include:
<ul>
<li>Pitch directly to the Challenge Holder</li>
<li>Apply for &pound;25,000 to develop and pilot the solution</li>
<li>Receive support from Innovate UK Business Connect</li>
<li>Access technical support and feedback</li>
<li>Gain visibility across the Innovate UK network</li>
<li>Build a potential long-term commercial partnership with the Challenge Holder</li>
</ul>

Rewards & Market Opportunity

Challenge launch: 24th March 2026 Deadline for applications: 28th April 2026 Selection and notification of finalists: 19th May 2026 Pitch Days: 26th &amp; 27th May 2026 Confirm selected solution provider: 2nd June 2026 Submission to Innovation Funding Service (IFS): 8th June 2026 Project length: 3 months and/or anticipated project completion by September

Timescales

<a>To lead a project as a solution provider your organisation must be a UK registered:</a>
<ul>
<li>micro, small or medium sized enterprise&nbsp;(SME</li>
<li>academic institution</li>
<li>research and technology organisation (RTO)[RH1][EM2][EM3]</li>
<li>community interest company (CIC) or charity</li>
</ul>
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Subcontractors are allowed in this competition
Subcontractors can be from anywhere in the UK and you must select them through your usual 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 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&nbsp;up to &pound;25,000 grant funding&nbsp;to deliver a&nbsp;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</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/">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.

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&nbsp;<a href="https://iuk-business-connect.org.uk/privacy-policy/" target="_new">Privacy Policy</a>.

Modular Hydrogen Separation for Small Scale Pilot Waste Facilities

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Modular Hydrogen Separation for Small Scale Pilot Waste Facilities