Red Diesel Replacement competition

Fund Name: Red Diesel Replacement competition
Project Length: 11 months
Project Value: Up to £460k in phase 1
Deadline: 22/11/2021


The £40 million Red Diesel Replacement (RDR) competition aims to accelerate the commercialisation of low carbon red diesel alternatives and is proposed to be delivered in 2 consecutive phases. Phase 1 offers a total of £9.2 million in grant funding, up to £460,000 for projects that develop technologies within any of the three innovation lots at technology readiness level (TRL) 4 and above:

Lot 1: Distribution, storage and refuelling systems development
Lot 2: Development of vehicle (components/sub-systems) and fleet management infrastructure (facilities for maintaining, hosting and servicing vehicles)
Lot 3: Fuel development

Fund Details

This competition will support technologies that have a clear progression pathway in reducing carbon emissions, air pollution emissions and reliance on biomass at each step towards the final goal of deploying a low carbon, zero biomass solution in the longer term. The long-term energy pathways that could enable this are:

  • Direct electricity
  • Battery
  • Hydrogen
  • E-diesel
  • E-methanol
  • E-methane
  • Ammonia

To be eligible for this competition, the technologies must prove that after Renewable Transport Fuel Obligation (RTFO) support, it can achieve a total cost of ownership (capital and operational costs) that is at least as good as current fuel/vehicle systems after the removal of the red diesel rebate. However, the funder recognises that the long-term energy pathways are not widely commercially available today and are at a lower TRL and that there may be a transitional stage where biomass-derived fuels, or even other fossil fuels, act as a bridging solution in the meantime to develop their associated technologies. Hence, this competition will also support the fuel/vehicle technologies listed below.

  • Compressed/liquefied methane or high-methane-content synthetic natural gas (Bio-methane)
  • Bio-methanol
  • Bio-Dimethyl Ether (Bio-DME)
  • Bio-Liquefied Ether (Bio-DME)
  • Bio-Liquefied Petroleum Gas (Bio-LPG)
  • Synthetic diesel
Get In Touch

If you want to apply for this funding opportunity Get In Touch by filling out the contact form below and our team will get back to you as soon as possible.

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