Innovation Exchange challenge: Valorisation of Bio-oil

Seeking solutions to convert bio-oil from biochar pyrolysis, into value-added materials, such as polymers, for automotive applications.
Registration Details

07/01/2026 12/02/2026 17:00
Opportunity Type

Commercial challenges, Commercial opportunity
Award

Opportunity to partner with Stellantis and potentially scale their solutions across the automotive sector. Selected applicants may secure significant commercial contracts and benefit from market expansion.
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Stellantis is seeking solutions to convert bio-oil they have produced from biochar pyrolysis, into value-added materials, such as polymers, for automotive applications. The focus is on achieving CO₂ permanence and commercial viability, with the goal of developing sustainable materials that can be integrated into the automotive sector.

Background

Stellantis, as part of its Carbon Net Zero strategy, produces biochar through biomass pyrolysis, which also generates bio-oil as a currently underutilised byproduct. The company seeks innovative solutions to convert this bio-oil into valuable materials, such as polyurethanes, polyesters, or polyamides, for automotive manufacturing, aiming to lower the carbon footprint of its vehicles.

With approximately 26 litres of bio-oil produced per tonne of biomass, Stellantis is exploring ways to leverage this resource to advance its carbon removal goals and enhance sustainability within its operations. Current quantities are small but could scale to thousands of tonnes if a viable business case is established. Process and feedstock variability may affect bio-oil composition, so flexibility in handling different qualities is important.

The Challenge

Stellantis is seeking innovative solutions to valorise bio-oil, a byproduct of biomass pyrolysis whose composition vary depending on feedstock and process conditions and is currently uncharacterized. The goal is to convert this bio-oil into permanent materials, such as polyurethane, polyester, or polyamide, suitable for automotive applications.

The proposed processes must prioritize efficiency in energy use, low CO2 footprint, and cost-effectiveness. A key metric is the additional cost per ton of CO2 saved compared to fossil-based materials, benchmarked against the Emissions Trading System (ETS) CO2 price.

  • Entrants to this competition must be:

    • Established businesses, start-ups, SMEs, or individual entrepreneurs
    • UK based or have the intention to set up a UK base
  • Solutions must:

    • at least be Technology ReadinessLevel 5 (TRL5) or above
    • be demonstrated at operational lab-scale or pilot experiments
    • be harmless for humans and the environment
    • work with bio-oil produced from biomass pyrolysis
    • enable conversion of bio-oil into materials with longer-term CO₂ storage (e.g. polymers for automotive parts).

    The solution must operate under realistic conditions that reflect the nature of bio-oil production and its environmental responsibilities:

    • No harm: Demonstrate no negative environmental, social, or economic impact through preparatory analysis, collaboration with local communities, robust planning, and regular monitoring.
    • No leakage: Ensure the solution does not displace or create emissions, supported by preparatory analysis, community engagement, and robust planning.
    • Ability for the process to run on renewable energy sources should be considered.
  • The challenge aims to unlock the potential of bio-oil by converting it into materials that offer longer-termCO₂storage, such as polymers for automotive applications. While initial production volumes will be small, the goal is to scale to thousands of tonnes if a viable business case is presented. Solutions should demonstrate scalability, commercial viability, and a clear roadmap to market.

    Solutions must:

    • provide an outline business plan up to the pilot plant stage.
    • provide the status and outlook of key performance indicators (KPIs) for their solution, including energy demand, CO₂ emissions, and cost.
    • include values for: (i) current solution (status) and (ii) projected scaled-up market solution, with an indicative timeline for achieving scale-up.
    • consider what KPIs for scale-up projections are required based on current work (e.g.,validated lab scale or pilot plant data).
    • demonstrate scalability and commercial viability with a clear roadmap to market.
    • evaluate the Energy, CO₂ efficiency, and cost-effectiveness of the solution; the process should minimise emissions, energy use, and costs.
    • consider an assessment of overall production costs (CAPEX+OPEX)
    • consider CO2 footprint assessment per tonne of produced material.
    • consider an assessment of energy demand per tonne of produced material.
  • Before preparing your submission, please be aware that the following approaches are considered out of scope for this challenge and will not be accepted:

    • Solutions focused solely on burning bio-oil as fuel or producing only energy
    • Solutions for converting bio-oil to bio-coke
    • Storing bio-oil underground.
    • Academic concepts without a commercialisation roadmap
    • Any solution that does not comply with the “no harm” and “no leakage” criteria
  • Successful solution providers will have the opportunity to partner with Stellantis and potentially scale their solutions across the automotive sector. If selected, applicants may secure significant commercial contracts and benefit from market expansion.

    Additional benefits for successful applicants may include:

    • The chance to pitch directly to Stellantis, with applications reviewed by technical experts in raw materials
    • Opportunities for co-development towards commercial adoption, pilot studies, or other arrangements based on mutual agreement
    • Support from Innovate UK Business Connect, including assistance in prototype or pilot development
    • Technical support and invitations to attend or present at Innovate UK Business Connect events
    • Potential for business collaboration and investor introductions if investment is required
    • Guidance and support for participation in relevant Innovate or similar competitions

For further info and application guidance, please visit the Innovation Exchange site at the link below.

Get in touch

For further details and queries, contact the Innovation Exchange team.

Programme

This opportunity is part of Innovation Exchange.

Innovate UK Innovation Exchange is a cross-sector programme supporting innovation transfer by matching industry challenges to innovative companies from other sectors. It does this by putting large businesses with technical needs in contact with companies who have the right innovative solutions, for faster development of novel solutions.

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