AI startup MatAnalytics secures £619k grant from Innovate UK
This article covers MatAnalytics, an AI startup, which has received a £619k grant from Innovate UK to develop and validate its CITRUS software for steel manufacturing. The funding aims to support development and industrial validation of a physics-informed AI tool that targets faster thermomechanical and microstructure predictions to help plant operators reduce reheating furnace energy use and improve process decision-making.
MatAnalytics, an AI startup, has received £619,000 in a grant funding round from Innovate UK to develop and validate its CITRUS software for steel manufacturing — a project the company says could speed up thermomechanical and microstructure predictions from hours to seconds and help reduce energy use in reheating furnaces.
Why it matters
Reheating steel slabs before rolling or heat treatment is one of the most energy-intensive stages of steel production. Faster, near‑real‑time predictions of temperature, stress and microstructure would let plant operators shorten furnace residence times and make quicker process decisions, cutting fuel consumption and operating costs while improving product consistency.
The award also sits at the intersection of two policy priorities: industrial decarbonisation and maintaining domestic capability in advanced AI. Innovate UK’s Frontier AI programme supported the bid, signalling public backing for physics‑informed AI tools aimed at heavy industry.
Inside the product
CITRUS is a physics‑based AI model trained on the outputs of finite element simulations. MatAnalytics says it can interpret sensor data from industrial components and predict thermomechanical behaviour and microstructure in seconds, offering an alternative to conventional finite element runs that can take hours or days.
The immediate target is optimisation of reheating cycles in gas‑fired furnaces — reducing time in furnace chambers to cut fuel use and increase throughput. MatAnalytics also positions the approach as reusable across other engineering‑intensive areas where heat, stress and damage matter, including power generation, aerospace, defence, automotive and nuclear sectors.
The firm traces its technology back to doctoral research at the University of Nottingham and has previously run tests with industrial users and explored power sector applications. The new grant will fund further technical development, industrial validation and hiring.
Who are the investors?
The funding is a grant from Innovate UK, awarded through its Frontier AI programme. The £619,000 follows an earlier £100,000 grant that supported the Midlands‑based company’s initial proof of concept.
Innovate UK framed the award as part of a drive to help UK AI talent develop frontier capabilities with clear industrial impact, especially in sectors tied to national priorities such as energy and manufacturing.
In the announcement, Damien Jefferies, Innovation Lead - Frontier AI at Innovate UK, said:
This grant funding is well deserved. Innovate UK's Frontier AI programme encourages UK AI talent to build and scale frontier AI companies in the UK, supporting globally competitive technologies that align with national priorities and deliver real-world impact.
The award is explicitly non‑equity support aimed at accelerating product readiness and early commercial traction rather than taking a stake in the company.
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Founder perspective
MatAnalytics was founded by researchers from the University of Nottingham. Leadership includes Dr Benedikt Engel, Chief Executive Officer and Co‑Founder, and Professor Andy Morris, Co‑Founder and Chief Technical Officer, alongside Executive Chairman Dan Hatfield and Chief Technology Officer Ben Osborne.
In the announcement, Dr Benedikt Engel, Chief Executive Officer and Co-Founder of MatAnalytics, said:
This Innovate UK funding is a significant milestone that validates our frontier AI capabilities here in the UK. It enables us to accelerate the development and industrial validation of our CITRUS platform, advancing our physics-based AI from a promising proof of concept to a deployable solution. This grant not only strengthens our technology roadmap, but also enables us to gain early commercial traction with UK industry partners, reinforcing British leadership in sovereign, physics-informed AI for critical industrial applications. At a practical level, it also means we can take on more technical and commercial staff to support our roadmap and future customers' needs.
The company plans to use the funds both for engineering work to bridge simulation outputs and live sensor feeds and to expand its team to support commercial pilots.
The bigger picture
Speeding up simulation‑grade insight has broad appeal across industries where decisions about maintenance, production settings or asset life carry high costs. MatAnalytics cites potential applications in thermal power generation, nuclear and fusion, hydrogen systems, offshore oil and gas, aerospace and automotive.
Market context underlines the scale of the opportunity. Research firm Grand View Research estimated the global steel market at about USD 1.494 trillion in 2025 and projected growth to USD 2.283 trillion by 2033, with Asia Pacific the largest regional share. Faster, lower‑carbon production tools could therefore have sizable operational and emissions impacts if adopted at scale.
This grant is an example of UK public funding nudging academic spinouts towards industrial deployment of AI that is explicitly physics‑informed. For the UK and Europe, where industrial decarbonisation and sovereign tech capability are policy priorities, the outcome of these pilots will be a useful test of whether simulation‑trained AI can deliver reliable, repeatable gains on the factory floor.
The MatAnalytics project will be watched by manufacturers and AI investors interested in industrial decarbonisation and by government bodies tracking the domestic development of frontier AI applied to heavy industry.
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