The second phase of the Red Diesel Replacement Competition will provide a £32.5m funding package to support innovative projects that are developing greener energy alternatives, the government has announced.
The funding is expected to be focused on greener alternatives to red diesel such as electrification and green hydrogen, providing a pathway for industry to cut emissions and energy costs.
Red diesel - also known as gas oil - is a type of fossil fuel commonly used for off-road, heavy-duty vehicles and machinery, such as bulldozers and cranes.
In April 2022, the government made changes to red diesel eligibility, restricting the use of the fuel in most sectors, as a way to pave a path towards net zero. In September of that year, the Red Diesel Replacement Competition was launched to develop affordable and efficient alternatives.
The new £32.5m package follows the £6.7m provided to 17 winners under Phase 1 of the competition, in areas covering electrification...