Many wetsuits are made from neoprene - but the UK currently has no way of recycling them, meaning more than 380 tonnes is burned or landfilled each year.
The neoprene recycling project is one of the eight mini projects newly funded by the network.
Led by the University of Plymouth and working with industry partner
Circular Flow Ltd, it will examine the scope for developing a UK neoprene recycling facility to help make the surfing and diving industry more circular or sustainable.
Circular Flow already has a facility in Bulgaria, but establishing one in the UK - home to some of the world's most popular surfing locations - would be a significant development.