Empowering the country’s cleantech startups will be critical to long-term economic success

By Dr David Pugh, Director of Sustainable Industry at Digital Catapult

The net zero transition presents a significant opportunity for businesses around the world to develop and adopt new solutions that can cut their carbon emissions and improve their operational efficiency, and enhance their commercial performance. As it stands the global cleantech market was valued at $5.5 trillion last year, and is expected to reach $7.4 trillion by 2030, demonstrating the opportunities that exist for cleantech startups and how important climate-focused investments have become in the global economy.

To capitalise on the growing global demand for cleantech solutions, the UK must consider how it can increase investment into its own cleantech companies, and breaking down the barriers to investment is a good place to start. Many cleantech companies struggle to secure the funding needed to scale in the UK, largely due to limited investment support. As a result, they often fail to reach the stage where their solutions can be effectively adopted by large enterprises. This creates significant challenges for businesses, customers, and commercial partners seeking to reduce carbon emissions and align with the UK Government’s ambition to position the country as a “clean energy superpower.”

Digital Catapult is committed to advancing industrial sustainability in the UK through the practical application of deep tech solutions. This is why a new Investment Readiness Programme has been launched to help eight pioneering cleantech companies to raise the funding they need to scale their solutions, and enact lasting change in the country’s manufacturing industry. Initiatives like this will be critical to demonstrating how sustainable industrial growth can be achieved through deep-tech innovation, yielding significant long-term gains for the country’s economy, and empowering cleantech innovators to succeed.

As it stands, the UK is home to an established cleantech ecosystem, and a thriving innovation scene. The ONS estimated that across the UK there were over 410,000 jobs in low carbon businesses and their supply chains, with their turnover estimated at £42.6 billion five years ago, and expectations that this number will double by 2030. Despite this statistic, according to CleanTech for the UK, the UK market remains significantly smaller than other major international blocs, and it is roughly a third the size of China and the EU. In fact, it is less than a tenth the size of the United States. If the UK is serious about growing its cleantech capabilities, initiatives that increase investment-readiness and empower cleantech startups will be key to strengthening the UK’s cleantech prowess globally.

Despite the growing size and amount of investment into UK cleantech, its share remains small compared to the broader technology sector. Two years ago, the country’s tech industry received £24 billion in VC investment, with cleantech receiving just 8.5% of the total share. With investment geared more towards industries with perceived higher returns, cleantech startups are being overlooked despite their potential to bring significant returns to investors and further mobilise the UK’s journey to net-zero. This highlights the importance of initiatives like Digital Catapult’s Investment Readiness Programme, which are essential not only for scaling startups but for advancing industrial sustainability too.

The participants on the new programme will focus on solutions that have several applications for the manufacturing industry, leveraging deep tech innovation and advanced digital technologies. Agave Networks for example, is revolutionising the metal recycling industry with advanced machine learning and computer vision technology, creating a secure, efficient system for trading reclaimed metals. Their approach to product and shipment verification is setting new standards in the sector. Bombyx Ltd on the other hand offers a people-focused product lifecycle management solution that integrates digital product passports, helping businesses in the EU meet regulatory requirements while streamlining processes. 

Similarly, Donaa Ltd is transforming the 3D printing industry with its AI-powered system, detecting defects in real-time to reduce costs and production timelines. Heuris Energy Ltd is driving the transition to sustainable energy by helping businesses reduce grid dependency through the procurement and management of batteries and flexibility assets. Remade Group promotes circular economy practices through innovative sustainable procurement solutions, while Riskoa Ltd provides businesses with AI-powered life cycle assessments to lower their environmental impact. 

Supply Fuel Solutions is tackling supply chain issues by developing a system that monitors bulk storage tanks in areas without network coverage, and Voxshell Limited speeds up the computational design process for 3D printing, cutting wait times from hours to minutes. The pioneering solutions are testament to the innovation that sits within the UK’s cleantech sector, and the Investment Readiness Programme will be key to helping these deep-tech companies to scale faster, and contribute to the country’s economic growth. 

The future of cleantech in the UK hinges on fostering the right investment environment to scale-up pioneering companies working on sustainable solutions. While the UK boasts a vibrant cleantech ecosystem, it still faces significant barriers, particularly in securing adequate funding. Without the financial backing necessary to bring their innovations to market, many of these startups struggle to make the kind of impact that could accelerate the UK’s journey to net-zero. Initiatives like Digital Catapult’s Investment Readiness Programme are crucial in bridging this gap, ensuring that cleantech companies can overcome financial and structural challenges and deliver scalable solutions for a greener future.