Ministry of Defence

SDR Energetics

Capital grants from the Ministry of Defence to build or expand UK factories making militarily useful energetic materials (the explosive and propellant constituents of munitions), following the Strategic Defence Review. Each project can receive up to £45 million or 50% of its eligible capital cost, whichever is smaller, and must attract private investment alongside. This is the first of three investment windows; the next are expected in Q2 and Q4 2027. Any organisation able to deliver such a project in the UK may apply, whether or not it took part in the earlier feasibility studies.

You could get
£500,000 – £45,000,000
Deadline
56 days left
8 January
Effort
Heavy
budgets, references, often several stages

Who can apply

  • Open to anyone able to undertake a project of this nature in the UK, subject to the scheme's mandatory criteria (set out in the application form)
  • Earlier participation in the MOD's feasibility and engineering-design work is not needed
  • Applicants must show a credible and commercially viable business plan, technical feasibility, a credible route to delivering the facility, compliance with regulatory, environmental and safety requirements, military utility and alignment with UK defence needs, and the ability to attract private investment alongside government support

What it funds

  • Establishing or expanding UK manufacturing capability for militarily useful major constituents of energetic formulations
  • Capital (CAPEX) costs of constructing new energetic materials manufacturing facilities in the UK

Grants cover up to 50% of a project's eligible capital cost, to a maximum of £45 million.

What it will not fund

  • Fundamental technology development
  • Process development
  • Demonstration of an unproven manufacturing concept

How to apply

  1. Register on the Defence Sourcing Portal and open the opportunity 'Strategic Defence Review Energetic Material Factory Grants Application' (Project_802068)
  2. Download the grant application form from the PQQ 'SDR Application Form' (PSQ_800099)
  3. Complete the form and upload it on the portal by 5pm on 8 January 2027
  4. Applications then pass a compliance check, eligibility and automatic-fail assessment, independent evaluation against six scored criteria, value-for-money and portfolio review, and due diligence before any award letter

Two further investment windows are expected in Q2 2027 and Q4 2027.

Have ready

The SDR application form, completed and uploaded on the Defence Sourcing Portal

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