The Government’s innovation agency Innovate UK has announced that 19 companies across the UK will share up to £2 million funding to develop innovative ideas that unlock the potential of shale oil and gas.

The fund, which will be run by Innovate UK, includes £1 million in contributions from the Department of Energy and Climate Change and a further £250,000 from the Natural Environment Research Council.

The winning projects will explore everything from water treatment and monitoring techniques to well drilling and design technology.  Following an intense competition 19 projects have been chosen, which will see companies test innovative ideas for shale gas and oil projects. These will explore at least three types of water treatment, new techniques for monitoring and technologies for well drilling and design.

Successful company bids include:

• Glass Technology Services, Sheffield: glass-based beads to keep fractures open, removing need for high-volume water use.
• Keronite Ltd, Haverhill: New ‘photocatalyst’ technology for safe water treatment.
• Wardell Armstrong Ltd, Stoke-on-Trent and around UK: non-intrusive geophysical techniques to probe to depths of up to 3,000m.
• NSG Environmental, Chorley: mobile treatment plant to allow water to be re-cycled and re-used.
• Cascade Technologies, Stirling: new types of sensors to detect methane leaks while drilling
• Tumbling Dice Ltd, Newcastle-upon-Tyne: new automated systems to guide exploratory drilling processes.

Announcing the funding, UK Minister for Business, Enterprise and Energy Matt Hancock said:

“Unlocking the shale gas and oil that is deep underground is an opportunity to reduce carbon emissions, increase our energy security and create jobs. It must be done safely and securely, so supporting innovation in this sector is vital to help us seize this opportunity.”

Shale gas and oil could help the UK improve energy security, create jobs and transition to a low carbon future. A 2013 study by NERC’s British Geological Survey predicted 1,400 trillion cubic feet of gas in the Bowland shale, although recoverable reserves cannot be accurately estimated until significantly more exploration has taken place. A separate study by EY suggests UK shale gas production could create up to 64,000 full-time equivalent jobs as well as investment and tax revenues.

Head of Energy at Innovate UK Rob Saunders said:

“Shale gas and oil could transform the energy sector in the UK, but for that to happen it’s vital that the public have confidence in the sustainability and above all, the safety of the industry.”

“That’s where innovation plays its role and the companies that have won the very competitive process we have run here are bringing considerable expertise to tackling this problem.”

Innovate UK’s competition ran for five months from summer 2014. A total of 67 companies applied with the best 19 projects now set to receive development grants of up to £150,000 each. Each project will start early in 2015 and run for between 6 and 12 months.