Any entrepreneur worth their salt will be eyeing up the low carbon market just now. While many other sectors face sluggish demand for their products as the economy slows, companies supplying clean energy and low carbon products into businesses and industry compelled to cut their emissions, should be onto a winner.

“The underlying drivers of demand in the low carbon economy are not going away any time soon,” says Rachael Nutter, business incubator manager at The Carbon Trust. “With energy prices going north, and supply of fossil fuels proving ever more difficult, it’s the perfect time to invest in innovations that will slice energy bills and make use of alternative energy sources.”

She adds that Government regulations and fiscal measures affecting how industry operates are increasingly aimed at reducing carbon emissions, making products like more efficient industrial compressors and motors, fuel cells and cost-effective green building materials much more commercially compelling.

The Carbon Trust’s incubator scheme launched in 2004, is entirely dedicated to helping fledgling low-carbon technology firms and research institute spin-offs become market-ready and start securing the investment equity needed to become professional, sustainable businesses.

So far 58 early-stage companies have benefited from the scheme, with 23 of those still being ‘incubated’. Four incubator partners - Angle Technology, Imperial Innovations, Isis Innovation and TTP - work with the start-ups to provide market research, business development support and assistance in securing funding for growth.

For instance Ashe Morris, which produces controllable, energy-efficient chemical reactors, had help researching where in the market they would find demand for their product, and how the processes could be tailored to potential customers’ needs. The incubator also assisted setting up meetings with pharmaceutical and fine chemical companies who might become early adopters willing to trial the technology.

Richard Barker, managing director at Ashe Morris, says, “The support has strengthened Ashe Morris’ credibility with both industry players and potential commercial fundraisers.” He adds, “Any company with new technology has problems getting through the door of big companies, and one major benefit of having the support and advice of The Carbon Trust has been that we have secured meetings more quickly.”

In four years many incredible ‘big ideas’ and scientific breakthroughs have made real progress towards commercial reality, says Nutter. “Companies that meet the strict selection criteria will have demonstrated their carbon-cutting case and proved their commercial worth. Being incubated then effectively provides up to £60,000 of consultancy help to get them off the ground and heading towards VC stage.”

She says The Carbon Trust is constantly seeking entrepreneurs with novel technologies that work and have genuine market demand. “We particularly look for people we feel we can work with, who are enthusiastic about their innovation, but also business-minded and willing to see the project through,” she says.

Three incubator companies have progressed on to become AIM-listed, and a total of £65 million of private funding has now been raised by participating companies, either during their incubation period or twelve months after exiting. One company, TMO Biotech which develops ‘bugs’ used in fermentation to produce bio-fuels, has secured an impressive £15 million - the biggest sum to date.

The European Commission has set a target for the UK to cut its carbon emissions by 20 per cent by 2010. Meanwhile zero-carbon homes by 2016 and zero-carbon commercial buildings by 2019 have been legislated for. These targets can only be met if ground-breaking low carbon technologies and products are successfully brought to market. So is it time for your big idea to see the light of day? Acceptance onto the Carbon Trust’s incubator programme could be the smartest way to start.

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