Enterprise M3 LEP s Low Carbon Workshop 19 th May 2016 Chute House, Basingstoke
Welcome, Introductions and Overview James Cretney Enterprise M3 Board Member and Chief Executive, Marwell Wildlife
Agenda and Objective Agenda 1:45 Presentations 2:45 Question & Answer session 3:00 Networking session with refreshments One-to-one lead partner sessions to follow. Objectives What is the low carbon funding opportunity? Where does your organisation fit it? What are the next steps?
The Low Carbon Environmental Goods and Services (LCEGS) sector nationally 4
The LCEGS sector in Enterprise M3, compared to other South East region LEPs LCEGS sales: 3.1bn in Em3, 3% of UK and 20% of South East total LCEGS sales (London accounts for about 22% of all UK sales) 24,200 jobs, or 1 in 5 LCEGS jobs in the South East After South East LEP the largest value of sales and more people in LCEGS employment than any other LEP
One in Five South East LCEGS companies located in Em3 1,317 LCEGS companies in Em3 3% of UK and 20% of all LCEGS firms in South East (London accounts for 20% of all UK LCEGS companies)
Which sub sectors make up the Low Carbon Environmental Goods and Services (LCEGS) sector?
LCEGS Sales (South East) Low carbon accounts for about 7.8bn followed by 4.5bn of RE and 2.9bn of Environmental sales Fastest growth since recession in Renewable Energy*
LCEGS Sales by sub-sector: Low Carbon (South East) Three large Low Carbon sub-sectors Relatively small Carbon Finance & Energy Management
LCEGS Sales by sub-sector (South East) Environmental Renewable Energy Three large Environmental sub-sectors Two relatively large Renewable Energy sub-sectors in wind and geothermal
Sector drivers and issues Government policy International policy Investment Energy security Distributed energy system Rising generation from renewables Social awareness Inconsistent government policies Lack of internal investment funding Local opposition Lack of interest/responsibility Low oil prices Skills demands Competition for small pool of experienced employees Lack of sector specific training and education
Update on ERDF Implementation Kathy Vuillaume, ESIF Programme Manager
What is ESIF funding? European Structural Investment Funds (ESIF): Financial tools to deliver the EU s Europe 2020 strategy through: Promotion of smart, sustainable and inclusive growth; Strategic investments devolved to local areas, and aligned to a 7-year policy framework (2014-2020); Complementing existing and planned domestic investment.
European Structural & investment Funds Programme in Enterprise M3 area Value of the ESIF programmes: 17,8m ERDF 14,5m ESF 4,5 m EAFRD Covering the period (2014) 2015-2023
European Structural & investment Funds Programme in Enterprise M3 area Two ways of delivery: Either or bidding through against specific specs What does it mean for an applicant? With direct bidding, applicants will have to bring and evidence 50% match-funding against total expenditures Through Opt-in organisations, the applicants will get 100% funding. (only available for ESF).
ERDF Budget Breakdown for the period 2014-2020 Priority 1: Research, development & Innovation 5,3 m (30%) Priority 2: ICT 1,2m (6,5%) Priority 3: Enhancing the competitiveness of SMEs 7,1m (40%) Priority 4: Developing a low carbon economy 4,2 m (23,5%)
Priority Axis 1 :Promoting Research and Innovation Budget Committed: 1,2m Digital Innovation Technologies Network (closed) 500k Innovate2succeed (closed) 3m Innovation Business Network (closed) Remaining budget 600k for call on innovation/incubation centers for priority sectors
Priority Axis 2 : Enhancing the access to, and use and quality of ICT Budget Committed: Remaining budget: street None 1,2m for call on digital high
Priority Axis 3 : Enhancing the competitiveness of SMEs Budget Committed: 500k Access to Finance for Growth(closed) 600k International trade (closed) 550k Digital Growth (closed) Remaining budget 5,45m for calls on inward investment, business support and 5G technologies applied across niche sectors with the development of new products and services
Priority Axis 4 : Developing a low carbon economy Budget Committed: 1m Wood Fuel (closed) 2m Promoting energy efficiency and renewable energy, R&I in and adoption of low carbon technologies (open) Remaining budget 600k for calls on innovative ideas and gaps in the market
Moving towards Delivery Enterprise M3 does not hold funding Grant funding held by the Managing Authorities for the funds: ERDF ESF EAFRD Department for Communities and Local Government (DCLG) Department for Work and Pensions (DWP) Department for Food and Rural Affairs (DEFRA)
Direct Bidding Route (ERDF) 1. MA puts out call online www.gov.uk/european-growth-funding 2. Applicant makes outline bid directly to MA; 3. MA assesses outline bids and seeks advice from EMG; 4. Top-ranking bids taken forward to stage two; 5. Applicant makes full application directly to MA; 6. MA assesses full application and seeks advice from EMG; 7. MA contracts with successful bidder and delivery commences; Managing Authority Applicant Applicants will be expected to provide match funding for direct bids
ERDF Technical Assistance (TA) partnership At Surrey County Council : At Hampshire County Council: vincent.oconnell@surreycc.gov.uk jennie.pell@hants.gov.uk Helen.Cutler@hants.gov.uk At Basingstoke and Deane Borough Council: Daniel.Garnier@basingstoke.gov.uk At Enterprise M3: Pam.Jones@enterprisem3.org.uk You are not alone! The TA partnership is here to help you through the process
Thank you for your attention
SOREC A Model of a Successful ERDF Project Pam Jones, Project Officer ERDF Technical Assistance
SOLENT OFFSHORE RENEWABLE ENERGY CONSORTIUM SOREC A business support organisation for the offshore renewable energy industry in the South East of England Supported by ERDF funding until 2015 Working with companies for a low carbon energy future
SOREC s objectives Provide grant funding for SMEs within the offshore renewable industry, or for those wanting to move into the sector Support transformational product development and technology transfer Stimulate the development of the UK supply chain for offshore renewables Provide information, intelligence and research to potential participants in the sector
Funding Support SOREC enabled us to push forward with development of a new product and bring it to market quicker than would have otherwise been possible. It has helped us invest in critical new testing instruments for solving production issues in wind turbine manufacture. How?
Funding for SMEs ERDF grant fund providing 50% of project funding, up to maximum of 50,000 per recipient Emphasis on job creation User-friendly application process, guidance through claim process Speedy payment process
Innovation and Tech Support We now have an international patent for the turbine and a UK patent application in progress for the mounting structure. We have been able to prove the performance of the product so can now proceed in bringing the product to market. How?
Innovation and Tech Transfer Innovation vouchers providing 50% funding for innovation costs (Intellectual Property, patenting, prototyping, testing), up to 5000 Innovation Events to bring together UK Knowledge base institutions and SMEs Delivery partner - Southampton Solent University Mapping of offshore renewables research capabilities of all universities in region Knowledge Transfer Partnership match making service
Supply Chain Development I have moved into this sector and SOREC has been a major part of that decision because of the contacts and support it has given to my company. SOREC has helped us to build a broader picture of the industry within our local area and recognise the opportunities closer to us. We have also had the chance to establish connections with clients and suppliers. How?
Supply Chain Development Meet the Buyer style events to bring SMEs face-toface with large companies Seminars to raise awareness of requirements SMEs must fulfil to compete for supply contracts Mentoring to help SMEs demonstrate supply readiness CompeteFor supply portal for offshore renewable projects
What worked well? Grant programme Raising awareness in Supply Chain Events SOREC has helped us to network and gain a better understanding of the sector and the opportunities it offers as well as the problems that need to be solved.
The conference was a great day of information for a newbie like me. It has been an excellent day, and we have gained a great deal of information to take our idea forward. As a new business, it has been very useful for me to find out ways of finding business via the portal. It has also highlighted how much I need to have in place to be business ready.
I have been very impressed with the outlook SOREC have when it comes to helping local businesses. Being a local family run business we believe that we can be a great asset in supplying to other companies involved. SOREC has enabled us to conduct a project that allowed us to employ a number of people and expand. Keep information flowing on any future projects in the area. In the words of the beneficiaries SOREC have been just fantastic in guiding and helping us to fund our business development. Excellent service, committed to helping local businesses. Continue to provide knowledge sharing and networking events for the sector, attracting representatives from the leading manufacturers.
Brief Overview of the Specification of the Current ERDF Low Carbon Call Chris Quintana Enterprise & Innovation Project Manager
CALL - CONTEXT This call invites applications from businesses seeking ERDF support under Priority Axis 4: Supporting the Shift to Low Carbon Economy in All Sectors Specifically, applications must demonstrate that they meet the requirements of one or more of the following Investment Priorities: 4b Promoting energy efficiency and renewable energy use in enterprises 4f Promoting research and innovation in, and adoption of, low carbon Technologies Applications must also meet identified local development needs/priorities (section 3.2 of the call) Please also familiarise yourself with the Enterprise M3 LEP ESIF Strategy at: www.enterprisem3.org.uk/funding
SCOPE of CALL Indicative fund allocation: 2 million over 3 years Minimum application level: 500k Minimum Project Value 1m Match via time contribution from business and other partners plus financial contribution Mix of Capital and Revenue Maximum project duration 3 years Type of partnership: Can be a lead partner working with a range of organisations, or Consortium approach Deadline for applications: 23:59 Friday 10 June 2016
Local Development Need Enterprise M3 ESIF strategy highlights the following challenges that this call aims to address: Lack of commercialised low carbon products and services Lack of low carbon awareness and local exemplars to demonstrate what can be achieved Lack of engagement in low carbon solutions through excluded groups So what are we seeking? Proposals for the development and delivery of a collaborative programme that promotes and supports the development and commercialisation of low carbon research and products through a mixture of grant and business support activities across the LEPs priority and emerging sectors Please familiarise yourself with Enterprise M3 s Strategic Economic Plan www.enterprisem3.org.uk/strategic-economic-plan/
Proposals are invited that demonstrate: A collaborative approach: Supporting open innovation - knowledge transfer with universities, higher education institutes, research centres and businesses Emphasis on encouraging commercialisation of World Class Low Carbon Research and IP Practical support for businesses seeking concentric diversification Stimulating demand for, and adoption of low carbon technologies through, for example: A series of innovative demonstrator sites (or one centre of excellence ) showcasing low carbon technologies and provide best practice Support to businesses to: Undertake green diagnostics or audits of energy efficiency (followed by..) Provision of energy efficiency information and guidance, tailored energy action plans, support to implement
Proposals are invited that demonstrate: Support for businesses innovating in new products that helps to build sector supply chains including: Support with product accreditation Marketing and promotion that aids in the adoption/commercialisation of low carbon technologies Specialist sector support providing advice, links with centres of expertise and connections to other forms of support, funding, guidance and networks Creates opportunities for development of new products and services that addresses key low carbon challenges and opportunities for the area, e.g. energy storage Strong connectivity across Enterprise M3 area as well as links with neighbouring LEP areas, national and/or international programmes Close partnership working with support providers and networks, e.g.: Enterprise M3 Growth Hub
Outputs Indicative outputs we would expect from the programme: 200 enterprises receiving support 200 enterprises receiving non-financial support 90 new enterprises receiving support 100 enterprises cooperating with research institutions 100 enterprises supported to introduce new to the market products 50 enterprises supported to introduce new to the firm products 40,000 tonnes of CO2eq over 3 years
Enterprise M3 LEP AREA LOW CARBON EVENT 19 May 2016 Georgia Pritchard, Greater South East Growth Delivery Team, DCLG
Process for submitting an ERDF application Priority Axis 4 - National picture 45
https://www.gov.uk/guidance/england-2014-to- 2020-european-structural-and-investment-funds 46
Application process: Find the Call Specification on Funding Finder Refer to the Programme guidance including the Operational Programme and the relevant LEP area s ESIF Strategy Submit an Outline application to the Managing Authority MA completes Outline Assessment Gateway and Core If successful, bid goes to LEP Area ESIF sub- Committee for advice on strategic fit 47
If successful, then applicant is invited to submit a Full Application On receipt, full technical appraisal On completion, back to the LEP Area ESIF Committee for strategic advice Successful letter Grant Funding Agreement issued 48
And then Project Initiation Visit and ongoing monitoring by DCLG contract manager At least one Article 125 audit by DCLG during the project lifetime Possibly one or more Article 127 audits depending on sample conducted by Government Internal Audit Agency 49
Top tips Make sure the bid is eligible refer to the Operational Programme and guidance Make sure the bid fits the local ESIF Strategy and the Investment Priority in the Call Answer all the questions in the Outline Application as fully as possible all of them are important Describe delivery plans (delivery partners, match funding) as fully as possible even if not finalised make sure they are realistic 50
Priority 4: Supporting the Shift Towards A Low Carbon Economy in All Sectors 51
4b. Promoting energy efficiency and renewable energy use in enterprises Specific objective: to increase energy efficiency in particular in SMEs, including through the implementation of low carbon technologies Support should be energy efficiency not resource efficiency. Can provide revenue & capital support but need to evidence diagnostic need. Match funding can come from the SME - doesn t need to be underwritten.
4f. Promoting research and innovation in, and adoption of, low-carbon technologies Specific Objective: Increase innovation in, and adoption of, low carbon technologies Focus is on knowledge transfer Need to be consistent with Smart Specialisation Strategy in England Technologies should meet the Low Carbon Innovation Coordination Group Bio-Energy Carbon Capture & Storage Domestic Buildings Electricity Networks & Storage Heat Hydrogen for Transport Industrial Sector Marine Non domestic buildings Nuclear Fission ( ERDF can t support nuclear) Offshore Wind Delivering Greenhouse Gas targets measured in CO2e.
Question & Answer session (15 minutes)
Thank you for your interest and attention. Pam Jones pam.jones@enterprisem3.org.uk