diff --git a/src/muse/filters.py b/src/muse/filters.py
index 1b9d351a..29942c80 100644
--- a/src/muse/filters.py
+++ b/src/muse/filters.py
@@ -436,13 +436,25 @@ def initialize_from_technologies(
         ("asset", demand.asset.values),
         ("replacement", technologies.technology.values),
     )
-    return xr.DataArray(
+    search_space = xr.DataArray(
         np.ones(tuple(len(u[1]) for u in coords), dtype=bool),
         coords=coords,
         dims=[u[0] for u in coords],
         name="search_space",
     )
 
+    # Only consider technologies that produce demanded commodities
+    demanded_commodities = (demand > 0).any("timeslice")
+    produces_commodity = (technologies.fixed_outputs > 0).rename(
+        technology="replacement"
+    )
+    if "region" in produces_commodity.dims:
+        produces_commodity = produces_commodity.any("region")
+    produces_demanded_commodity = (produces_commodity * demanded_commodities).any(
+        "commodity"
+    )
+    return search_space & produces_demanded_commodity
+
 
 @register_initializer(name="from_assets")
 def initialize_from_assets(
diff --git a/tests/test_agents.py b/tests/test_agents.py
index 764068a2..49dab110 100644
--- a/tests/test_agents.py
+++ b/tests/test_agents.py
@@ -144,7 +144,11 @@ def test_run_retro_agent(retro_agent, technologies, agent_market, demand_share):
     technologies.max_capacity_growth[:] = retro_agent.assets.capacity.sum() * 100
 
     investment_year = int(agent_market.year[1])
-    retro_agent.next(technologies.sel(year=investment_year), agent_market, demand_share)
+    retro_agent.next(
+        technologies.sel(year=investment_year).isel(region=0),
+        agent_market.isel(region=0),
+        demand_share,
+    )
 
 
 def test_merge_assets(assets):
diff --git a/tests/test_filters.py b/tests/test_filters.py
index 40edc423..c98744a3 100644
--- a/tests/test_filters.py
+++ b/tests/test_filters.py
@@ -194,12 +194,18 @@ def test_init_from_tech(demand_share, technologies, agent_market):
 
     agent = namedtuple("DummyAgent", ["tolerance"])(tolerance=1e-8)
 
+    # All technologies produce demanded commodities
     space = initialize_from_technologies(agent, demand_share, technologies=technologies)
     assert set(space.dims) == {"asset", "replacement"}
     assert (space.asset.values == demand_share.asset.values).all()
     assert (space.replacement.values == technologies.technology.values).all()
     assert space.all()
 
+    # No technology produces demanded commodities
+    technologies.fixed_outputs[:] = 0
+    space = initialize_from_technologies(agent, demand_share, technologies=technologies)
+    assert not space.any()
+
 
 def test_init_from_asset(technologies, rng):
     from collections import namedtuple