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Zero Emission Vessels and Infrastructure 2: energy efficiency

Opens:
26/3/26
Closes:
16/9/26
Deadline: Ongoing – no fixed deadline
Funding body
Department for Transport (via IUK)
Award value
£6M - £60M
Duration
Project delivery to 31 December 2029
Deadline
16/9/26
Ongoing – no fixed deadline
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Overview

This competition supports large-scale demonstration projects developing and deploying innovative clean maritime technologies. Delivered through the UK SHORE programme, it aims to accelerate the decarbonisation of the maritime sector and position the UK as a global leader in clean maritime technology.

Projects must move beyond early-stage R&D, focusing on real-world deployment and operation. Funded solutions must be demonstrated over a three-year period without further grant support, providing clear evidence of performance, emissions reduction, and commercial viability.

Scope

Projects must develop, build, deploy and operate innovative vessel energy efficiency technologies and any associated infrastructure. The focus is on large-scale, real-world demonstration projects that can show meaningful greenhouse gas emissions reduction and clear commercial potential.

Projects must evidence how vessels will be built or retrofitted with clean maritime technology, and how any related infrastructure will be delivered in time for operational demonstration by 31 December 2029. Funded activity can cover project delivery, vessel development and infrastructure development up to that point, after which projects must complete a non-funded three year demonstration ending by 31 December 2032.

Proposals must demonstrate that the technology will operate in a representative real-world environment and reflect a full-scale commercial operational profile. This includes showing how vessels and infrastructure will be used extensively, how performance data will be captured, and how the solution will validate operational, technical and environmental performance 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. Applications must also show a realistic build or retrofit plan, a strong 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 for scaling and commercialising the solution in the UK and internationally, anchoring intellectual property in the UK, and demonstrating long-term value to the UK supply chain and wider economy.

Projects must also commit to knowledge sharing and evaluation activity. Successful 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, and provide a public summary of lessons learned.

Key themes and topics

Projects must focus on vessel energy efficiency technologies and may include:

  • wind assisted propulsion systems
  • ship hull efficiency improvements
  • air lubrication systems
  • onboard waste heat recovery
  • propeller and rudder flow optimisation
  • onboard solar power
  • vessel smart energy management systems
  • energy efficient auxiliary systems
  • in-port hull management technologies (e.g. cleaning and polishing)
  • onboard carbon capture and storage (with clear storage or disposal plan)

Projects may also include:

  • multi-vessel deployments across multiple end users
  • supporting infrastructure upgrades where required

Projects will not be funded if they focus on:

  • fossil fuel powertrain improvements (except waste heat recovery)
  • hybrid electric vessels (must be zero emission in other strands)
  • non-innovative shore power solutions
  • marine conservation or ecology
  • synthetic fuel production
  • military or submarine applications
  • duplicate or already commercialised solutions

Project duration

Project delivery until 31 December 2029

Three year demonstration period (non-funded):

Start by 1 January 2030

End by 31 December 2032

Award value

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

Maximum grant request is £30 million (with up to £20 million per 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 and refining 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 demonstration infrastructure and vessels may be funded up to 80%

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 (with limited exceptions for non-funded partners)and intend to exploit the results from or in the UK
  • Subsidy control and state aid rules apply

Why work with us?

At Kene, we make securing and managing grant funding simple, efficient, and effective. Whether you’re applying for funding, setting up a new project, or managing ongoing reporting, our services are tailored to support you throughout the entire process.

Our team of STEM qualified consultants and sector specialists bring a breadth of technical expertise gained from supporting our extensive SME client portfolio, across more than 17 industries. Our end-to-end approach ensures each project meets funding competition requirements while maximising the chances of success and ensuring smooth implementation.

We know what strong funding applications look like, and more importantly, how to make your project stand out.

Book a free consultation with our expert grant funding advisors today.

How can we help?

Book a free consultation with our expert R&D funding advisors today. We specialise in helping innovative businesses like yours unlock millions in government funding, specifically allocated to fuel your innovation. Let us help your business access the support it deserves.

Dr. Claire Flanagan

Grants Lead
Claire Flanagan

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Why choose us?

At Kene, we make securing and managing grant funding simple, efficient, and effective. Whether you’re applying for funding, setting up a new project, or managing ongoing reporting, our services are tailored to support you throughout the entire process.

Our team of STEM qualified consultants and sector specialists bring a breadth of technical expertise gained from supporting our extensive SME client portfolio, across more than 17 industries. Our end-to-end approach ensures each project meets funding competition requirements while maximising the chances of success and ensuring smooth implementation.

We know what strong funding applications look like—and more importantly, how to make your project stand out.