Millions of UK households could benefit from warmer homes and lower energy bills, as ten new artificial intelligence (AI) innovations have been selected as finalists for the prestigious Manchester Prize
Supported by £1 million in funding and government support, these projects are poised to transform the country’s approach to tackling climate change while making clean energy more accessible and affordable.
More innovative heating solutions for homes
One of the standout technologies is EnergyWall, a system that turns building walls into smart radiators. Designed to complement heat pump systems, it warms or cools homes from the outside, helping to maintain comfortable indoor temperatures throughout the year.
This method simplifies retrofitting for older buildings, especially social housing, and could significantly lower installation costs and energy bills.
Kestrix’s Rapid Thermal Performance Assessment algorithms (RaThPAs) use AI and thermal drones to scan entire neighbourhoods for heat loss. The result is a fast, 3D “heat map” that helps local authorities and housing providers prioritise insulation upgrades, cutting emissions and improving living conditions with minimal disruption.
Cutting emissions in the industry
The cement and steel industries, two of the highest carbon-emitting sectors, are also getting an AI-powered makeover. Carbon Re is developing intelligent software to optimise cement production processes, significantly reducing both emissions and operating costs in real-time.
In the steel sector, Deep. Meta is using a combination of AI and physics to simulate and refine furnace operations. Their digital twin technology enhances scheduling and energy utilisation, providing users with clear, data-driven insights.
Greener urban transport and logistics
City logistics are being tackled by Cavolo, which helps businesses transition to Light Electric Vehicles (LEVs). Its AI platform continuously optimises delivery routes, reducing energy use, traffic congestion, and pollution in urban areas, without sacrificing delivery speed or efficiency.
Another transport-related innovation, DRIVE by Flexible Power Systems, uses deep reinforcement learning to help manage large electric vehicle fleets. The AI can decide when and where to charge vehicles in real-time, making electric fleets more practical and cost-effective.
Future-proofing the energy grid
As renewable energy sources, such as wind and solar, become more prominent, maintaining grid stability is becoming increasingly challenging. The Grid Stability project at the University of Manchester utilises AI to assess power system balance in real-time, replacing outdated simulation tools with faster and more responsive technology to maintain the grid’s reliability and resilience.
AI for sustainable fuel and recycling
BiofuelAi, developed by the University of Surrey, is introducing digital twin technology to biofuel production, enabling more efficient and predictable processes. This makes biofuels more viable at scale and helps reduce reliance on fossil fuels.
At the end of the energy lifecycle, Green Loops is working to recycle solar panels into new, high-efficiency units. By applying machine learning and advanced materials science, the team aims to reduce solar waste while enhancing the performance of renewable energy.
Supporting innovation for the public good
Each finalist has received £100,000 in seed funding and £60,000 in computing credits to support the development of their AI models. They also benefit from expert mentorship and investor guidance to help scale their solutions ahead of the £1 million grand prize, which will be awarded in early 2026.
The Manchester Prize, delivered by Challenge Works and funded by the Department for Science, Innovation and Technology, supports UK-led innovations that deliver public value. Now in its second year, the prize shows the potential of AI to transform industries, improve lives, and drive the UK’s clean energy transition.
