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Red Diesel Replacement competition

Fund Name

Red Diesel Replacement competition

Project Length

11 months

Project Value

Up to £460k in phase 1



The Red Diesel Replacement competition are providing £40 million in grant funding for projects that develop and demonstrate lower-carbon, lower-cost alternatives to red diesel for the construction, and mining and quarrying sectors.

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

Check Your Eligibility

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

Talk to us today if you would like to apply for this opportunity.

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