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3 minute read - 5th December 2022

£73m funding awarded to clean transport projects

More than £70m in joint government and industry funding has been awarded to projects across the UK aiming to accelerate the development of clean transport technologies.

The five successful projects are set to support 3,300 jobs across the UK, working on new ways to harness renewable fuels, electric motors that are both powerful and highly efficient, and new materials that will reduce the automotive industry’s carbon footprint.

The funding has been awarded through the Advanced Propulsion Centre’s (APC) collaborative R&D programme, which supports the development of innovative low and zero-carbon automotive technology, with £36.4m coming from government. This is backed by a further £36.6m from the automobile industry – taking its total to £73m.

£73m of new government funding has been announced for the development of clean transport technologies / Picture: Getty/iStock

Ian Constance, chief executive of the APC, said: “Supporting vital research and development in the UK, now more than ever, provides an opportunity to invest in transport decarbonisation as well as boost growth in the automotive sector. The £73 million of funding announced today furthers world-leading innovation in net zero technology for the automotive sector and beyond. These five fantastic projects are all collaborative by design, led by high-profile companies with innovative SME and academic partners, representing the best of UK industry.”

Grant Shapps, business secretary, added: “Our automotive industry is a world-leader, creating jobs whether in Essex, Somerset or Glasgow. Seizing the potential from new technologies will be a key part of its future success, while also making our roads cleaner, greener and more affordable. Today’s multi-million pound boost – created by government working hand-in-hand with industry – will put these firms in pole position to pioneer these innovations, staying at the cutting edge of the global race for decades to come.”

The funding winners are:

Receiving £30m to develop a hydrogen fuel cell-powered HGV cab and tractor unit to replace the diesel-powered vehicles currently used to transport road freight.

CNH Industrial
Receiving £15.6m to develop the world’s first liquid fugitive methane-powered, off-road, heavy tractor. It makes use of methane gas produced by waste from farms, that would otherwise escape into the atmosphere.

Receiving £11.3m to develop a hydrogen-fuel cell version of its Hilux pickup truck, ideal for use in isolated settings where electric vehicle charging is impractical.

Receiving £10m to provide new sources of recycled aluminium that could massively reduce the automotive industry’s carbon footprint.

Electrified Automation
Receiving £6m to up-scale a market-disrupting new method for manufacturing electric motors that are more cost-effective, powerful and efficient than much of the competition.

The announcement comes on top of funding also being invested by the government through the Automotive Transformation Fund (ATF) to develop a high-value end-to-end electrified automotive supply chain in the UK.

This includes unlocking private investment in gigafactories, battery material supply chains, motors, power electronics, and fuel cell systems. The ATF is being delivered by the Department for Business, Energy and Industrial Strategy in partnership with the Advanced Propulsion Centre.

The government has committed a record £211m to battery research and innovation through the Faraday Battery Challenge, to help the sector deliver 100,000 jobs in battery gigafactories and the battery supply chain by 2040. The funding will be delivered by UK Research and Innovation (UKRI) with support from the Faraday Institution, Innovate UK and the UK Battery Industrialisation Centre (UKBIC).

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