Zero Emission Vessels and Infrastructure 2: alternative fuels

Overview

This competition supports large-scale clean maritime demonstration projects that develop, deploy and operate innovative alternative fuel solutions in real-world conditions. Delivered through the UK SHORE programme, it is designed to accelerate maritime decarbonisation and strengthen the UK’s position in clean maritime technology, infrastructure and manufacturing.

The Alternative Fuels strand focuses on alternative fuel vessels and accompanying port refuelling infrastructure. Successful projects must move beyond concept stage and show how their technology can be built, deployed and operated at scale, with a clear route to long-term commercial use.

Scope

Projects must develop, build, deploy and operate innovative alternative fuel technologies for maritime use, including alternative fuel vessels and accompanying refuelling infrastructure. Any related shoreside infrastructure at ports, harbours, inland waterways, marinas, offshore sites or similar operational environments can also be included where it is essential to the project.

Projects must evidence how vessels will be built or retrofitted and how accompanying infrastructure will be delivered in time for operational use by 31 December 2029. Funded activity can cover project delivery, vessel development and infrastructure development up to this point. Each project must then complete a non-funded three year demonstration ending by 31 December 2032.

Applications must show that the proposed technology will operate in a representative real-world environment and reflect a full-scale commercial operational profile. This includes demonstrating how vessels and infrastructure will be used extensively, how operational and environmental performance data will be captured, and how the solution will validate technical, commercial and regulatory viability over time.

Projects must include relevant end users, such as vessel operators, ports, harbours or other infrastructure owners or operators, as an integral part of the project development and demonstration. Proposals must also show a realistic build or retrofit plan, a robust understanding of regulatory, commercial and supply chain risks, and appropriate arrangements for safety, training, repair and maintenance throughout the demonstration period.

Applicants must quantify the actual and potential reduction in well-to-wake greenhouse gas emissions, explain any wider environmental impacts, and set out a credible route to market. This includes a clear plan to scale and commercialise the solution in the UK and internationally, while anchoring intellectual property in the UK and showing clear value to the UK supply chain and wider economy.

Successful projects must also commit to knowledge sharing and formal evaluation activity. Applicants will be expected to share demonstration data and findings with the Department for Transport, Innovate UK, the Maritime and Coastguard Agency and any appointed evaluation partners, alongside providing a public summary of lessons learned.

Key themes and topics

Projects can focus on one or more of the following:

• alternative fuel new build vessels
• alternative fuel retrofit vessels
• hybrid electric and alternative fuel vessels
• accompanying refuelling infrastructure
• onboard fuel cell technology
• onboard combustion technology compatible with alternative fuels

Projects involving multiple vessels for multiple end users are a priority theme within this strand.

Alternative fuel projects must intend for any fossil fuel usage to be as a pilot fuel only. Smart shipping, digital and autonomy technologies are in scope only where they are developed as part of a project focused on the core alternative fuels theme.

Projects will not be funded if they focus on:

• improving conventional fossil fuel powertrains, except where related to waste heat recovery
• funded fossil fuel or fossil fuel powertrain costs, unless the powertrain can use alternative fuels
• battery electric vessels that are not 100% battery electric
• shore power systems that are not novel, innovative and commercially viable
• marine conservation or ecology
• removal of non-GHG and indirect GHG emissions from conventional fossil fuel combustion
• non-methanol biofuels, except in limited pilot or secondary fuel cases linked to methanol, ammonia or hydrogen vessels
• personal watercraft
• synthetic fuel production, except the use of zero or near zero greenhouse gas emission methanol, ammonia and hydrogen fuels
• submarines or submersible vessels
• military applications
• duplicate or already commercially delivered solutions

Project duration

Projects must start by 1 April 2027

All grant funding must be claimed by 31 December 2029

Non-funded three year demonstration must start by 1 January 2030

Non-funded three year demonstration must end by 31 December 2032

Award value

Projects must have total eligible costs between £6 million and £60 million

Maximum total project grant funding request is £30 million

No more than £20 million can be allocated to a single participant

Funding rates

For industrial research projects, purposeful research that builds new knowledge and skills to improve or develop products, processes or services, funding is available for eligible project costs of:

• up to 70% if you are a micro or small organisation
• up to 60% if you are a medium sized organisation
• up to 50% if you are a large organisation

For experimental development projects, which focus on testing, refining and validating near-market solutions, funding is available for eligible project costs of:

• up to 45% if you are a micro or small organisation
• up to 35% if you are a medium sized organisation
• up to 25% if you are a large organisation

Capital costs for vessels and infrastructure used in the demonstration can be funded up to 80% until 31 December 2029

Research organisations can share up to 5% of the total eligible project costs

Eligibility criteria

• Projects must be collaborative and led by a UK registered business of any size
• Projects must include at least one grant claiming SME
• Collaborators can be a UK registered business of any size; an academic institution; a charity; a not for profit; a public sector organisation; or a research and technology organisation (RTO)
• Subcontractors must be preferably UK-based with fully justified and appropriate costs
• All funded project work must be carried out within the UK and must intend to exploit the results from or in the UK
• Subsidy control and state aid rules apply