Innovation contests offer springboard for start-ups with cleantech X Factor

With time being a precious commodity for start-ups and other small ventures, participating in innovation competitions are understandably not a top priority. However, they could be missing out on a fantastic opportunity, particularly in relation to third-party expert validation of their solution, writes Dr Heather Johnstone.

For any start, scale-up or other new venture securing funds that will enable them to take the next step on their entrepreneurial journey is vital, whether it’s conducting a POC, successfully bringing their solution to market or growing their business in new markets.

Commonly, they look to fundraise through venture capital firms or venture arms of corporates, as well as the less trodden, but more philanthropic route of the business angel.

Another opportunity to raise cash, however, is by participating in innovation competitions, many of which offer prize money. Albeit less lucrative in monetary terms, participating in and winning such competitions can provide a host of additional benefits to entrants.

The emphasis of some, like ClimateLaunchpad, which is aimed at early-stage start-ups, is to provide impactful mentoring and training so that great ideas can translate into viable green businesses. While others also offer winning ventures the opportunity to partner and plug into an expert network, where they can gain knowledge and exchange ideas.

One example of this is Elia Group’s Open Innovation Challenge. Now in its sixth year, the focus of the 2022 competition is embedding sustainability across all of Elia’s value chain processes. It’s worth noting the application process for this year is open until 31 March.

One, if not the most high-profile was last year’s inaugural Earthshot Prize, which will award £1 million ($1.3 million) to five of the most innovative solutions aimed at addressing the climate crisis on an annual basis over the next 10 years. One of last year’s winners was Enapter GmbH, which has developed modular anion exchange membrane electrolysers aimed at making green hydrogen production more affordable.

There is a plethora of such competitions within the cleantech space, but I’ve highlighted three that in my opinion are important within the context of the energy transition.

“With the jury consisting of leading industry experts, they not only ask the right questions,
but also provide good feedback, so participation alone is a win for founders.”
Martin Baart, CEO and Co-founder, ecoligo GmbH

New kid on the block

One of the newest competitions was launched earlier this week by the UK’s Net Zero Technology Centre. It’s a global £10 million open innovation programme aimed at developing and deploying innovative technologies to reduce offshore emissions, accelerate clean energy production and enable delivery of the UK’s net-zero ambitions.

The funding programme is split into two competitions, with the first opening on 16 March and the second scheduled for October. In the first round, £7 million ($9.2 million) is up for grabs.

With a maximum of £1 million awarded to each winner, it focuses on seven key technology areas: carbon capture, utilisation and storage; hydrogen and clean fuels: Renewables and energy storage: zero emissions power; venting and flaring; integrity management; and late life and decommissioning.

According to Myrtle Dawes, Solution Centre Director, Net Zero Technology Centre: “[It] will allow us to concentrate on specific technology gaps to develop and commercialise the innovative technologies that are currently in the prototype and demonstration phase and ultimately drive the huge leaps in clean energy innovation that will deliver our 2050 emission reduction targets.”

Two well-established and highly-respected competitions are the Germany Energy Agency’s Start Up Transition Award (SET Award) and the New Energy Challenge, which is jointly organized by Get in the Ring, Rockstart, Shell and YES!Delft.

SET Award

SET Award is open to start-ups and young companies from around the globe that are working on ideas relevant to the energy transition and climate change, and over the last five year it has received more than 2,300 applications from 102 countries.

The competition routinely comprises five categories, with the winner of each receiving a maximum of €10.000 ($11,000). A particularly nice touch is the publication of the SET 100, which is compilation of the 100 most innovative and promising start-ups that apply each year.

One of last year’s winners, of the Clean Energy Generation category, was ecoligo GmbH, headquartered in Germany, which offers a fully-financed solar-as-a-service solution to businesses in emerging markets, enabling them to go green and lower their energy costs at the same time.

One of last year’s winners was ecoligo GmbH. Headquartered in Germany, it offers a fully-financed solar-as-a-service solution to businesses in emerging markets, enabling them to go green and lower their energy costs at the same time.

Martin Baart, CEO and Co-founder, told me: “Winning was a great recognition of our global efforts in pioneering the energy transition. It was a great motivational boost for the team, knowing that many hundred other amazing hard-working companies also applied. Beside the motivation boost, the extensive media coverage really led to an increase in inquiries we received from retail investors and VC firms, as well as potential partners.”

He also believes that even if you don’t win, participation alone can be a positive and beneficial experience for founders.

“The often extensive application process requires founders to really think about their business model, their unique selling point and how they also can communicate this best to convince the jury.

“With the jury consisting of leading industry experts from the sustainability, investment and start-up world, they not only ask the right questions, but also provide good feedback. Therefore, through participation alone, it’s a win for all founders.

Applications for this year is now closed, but make sure you mark your diary for around the end of October, when application for the 2023 edition is expected to open.

“Winning represented an all-important third-party validation by a major player in the energy sector
for the solution Geyser Batteries offers.”
Stefan Strohmayer, Director of Sales & Product Management, Geyser Batteries

New Energy Challenge

One of the strengths of the New Energy Challenge is its simple structure. It's split into two categories – a Start-up one and a Scale-up one – with each one’s ‘prize’ reflecting what would be most beneficial for the stage the winning new venture is at.

So, the finalists in the former category participate in an intensive programme designed by YES!Delft, enabling them to validate their business plans and exchange ideas with coaches and experts. The overall winner then receives €100,000 ($110,000) towards a POC within the Shell GameChanger programme to test the technical and commercial viability of their solution.

While in the Scale-up category, finalists get the opportunity to engage with experts from Rockstart for knowledge building and idea sharing, as well the opportunity to design a pilot proposal. The winner then has the opportunity to further develop and potentially execute the pilot, together with Shell Ventures and Shell’s Renewables & Energy Solutions business.

The winner of the Start-up category last year was Geyser Batteries, which is looking to disrupt the energy storage market through its sustainable high-power heavy-duty batteries that utilises novel proprietary technology.

Speaking with Stefan Strohmayer, its Director of Sales & Product Management, about what the win means to him and his colleagues, he said: “In addition to the obvious benefits of winning the €100,000 POC with Shell and the attention it drew to our technology, it also represents the all-important third-party validation by a major player in the energy sector for the solution Geyser Batteries offers.

“Although the announcement of our win is still relatively new, we are already seeing a positive impact, for example, in the levels of interest from both customers and investors.”

For this year’s New Energy Challenge, the application process is expected to open early May.

Did you read?
£10 million funding competition launched to strengthen net-zero technologies
Low-Carbon Hydrogen Accelerator launches to support industry start-ups
Climate innovation: Wins, challenges and gaps

I'll finish by saying that I’m conscious that for start-ups and other new ventures, time is precious and you need to make every minute count, but I do highly recommend that you familiarise yourself with all relevant innovation competitions that are currently out there, keep an eye out for new ones launching, map out their respective submission deadlines and factor in time to apply for them with a really strong submission.

To put it simply, you’ve nothing to lose and potentially everything to gain.