Hydro Power Equipment

The Players

Hydro Power Equipment

Hydro Power Equipment (HPE) has been a pioneer of innovative, hydro powered mining products and services for over three decades. Through innovative design and engineering excellence, HPE has proven the viability and the necessity for hydropower as an efficient energy delivery medium for cost-effective mining.

Catalyst Solutions

Catalyst Solutions is a specialist advisory firm helping businesses identify and secure funding through R&D tax incentives and government grants. Combining technical and financial expertise, the team works closely with clients to identify qualifying opportunities, manage the application process and navigate legislative and regulatory requirements.

01 The Challenge

HPE invests significant resources into research and development across four key areas: drilling, mechanisation, valves and rock handling. This presented valuable opportunities to access R&D tax incentives and government grants.

However, while HPE recognised that its activities could qualify for support, navigating the legislation, eligibility requirements and application processes presented a considerable challenge for its internal finance team.

The specialist knowledge, administration and time required to pursue these opportunities made managing the process in-house increasingly difficult.

02 Mining value: A partnership is formed

In 2014, Catalyst Solutions recognised the potential for HPE to unlock valuable tax incentives and grant funding through its ongoing R&D activities.

What followed was a partnership that allowed HPE to focus on what it does best: developing innovative mining equipment, while Catalyst Solutions took on the complexities of securing the available incentives.

Combining technical and financial expertise, Catalyst Solutions worked closely with HPE to identify qualifying opportunities, manage the application processes and navigate the legislative and regulatory requirements. This reduced the administrative burden on HPE’s internal teams and helped turn its investment in R&D into tangible financial value.

03 The Results

Since the partnership began in 2014, Catalyst Solutions has supported HPE in securing more than R5 million in combined R&D tax savings and grant funding through two incentive programmes.

Over R3 million Saved through Section 11D Tax Incentives

Catalyst Solutions has completed over 20 successful 11D tax incentive claims for HPE with a 100% success rate. They have saved HPE a total value of over R3 million

R2 million+ SPII Cash Grant: The Non-Throw Loader Project

HPE undertook the design, prototyping and testing of a hydro-powered rock loader incorporating a unique combination of actions.

Catalyst Solutions identified the potential for the project to qualify for both the Section 11D R&D Tax Incentive and funding through the Support Programme for Industrial Innovation (SPII).

The SPII grant application was approved, securing over R2 million in funding for HPE’s development work.

A partnership delivering long-term value

The relationship between HPE and Catalyst Solutions demonstrates the value of combining ongoing investment in R&D with specialist support to identify and secure available incentives.

With more than 20 successful Section 11D approvals and an approved SPII grant, the partnership has helped HPE unlock significant tax savings and grant funding that could be reinvested into its R&D operations.

Just as importantly, Catalyst Solution’s management of the process reduced the time and administrative demands placed on HPE’s internal teams.

Conclusion

HPE has been able to offset eligible research on R&D against the tax paid on the company’s annual aggregated turnover in the most efficient manner by engaging with an experienced team with the know- how and resources to achieve 100% success year-after-year.