Grant funding for projects to develop and demonstrate innovative
low-carbon technologies for use as alternatives to red diesel on
construction, mining and quarrying sites.
From: Department for Energy
Security and Net Zero
Published 13 September 2023
Last updated 22 April 2024 — See all updates
Documents
Red Diesel Replacement
competition: Phase 2 successful projects
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Red Diesel Replacement
competition: Phase 1 successful projects
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Details
The Red Diesel Replacement (RDR) programme aims to support
the development and demonstration of low carbon fuel and system
alternatives to using red diesel in the construction, and mining
and quarrying sectors. The programme promotes the decarbonisation
of these high-impact sectors, which are affected by partial
removal of the entitlement to use red diesel and rebated fuels
which was effective from April 2022.
Programme aims
- develop commercially viable and globally applicable
low-carbon alternatives to red diesel, looking at long-term
solutions
- demonstrate an integrated, low-carbon solution at a moderate
scale on site for the mining and quarrying sector, and the
construction sector
- accelerate the commercialisation of low-carbon red diesel
alternatives
- disseminate the learnings and results of
the RDR programme
to international stakeholders, industry and other sectors which
use middle distillate fuels
- inform policy team on the potential of low carbon
alternatives and create awareness of the spin-off opportunities
for other sectors (e.g. maritime, agriculture and road freight)
In total, £32.4 million in grant funding has been awarded to 23
innovation projects across the 2 phases of the programme, both of
which are closed.
Phase 1 (closed November 2021)
£6.7 million was awarded in grant funding across 17 projects,
with up to £460,000 available per project.
Phase 1
projects developed component technologies which were at
technology readiness level (TRL) 4 or above at project
start and within one of the following 3 innovation lots:
- Lot 1: Distribution, storage, and energy delivery systems
development
- Lot 2: Development of equipment (components/sub-systems) and
fleet management infrastructure (facilities for maintaining,
hosting and servicing vehicles)
- Lot 3: Fuel development
The projects developed understanding of the core and ancillary
technology, the technology, market potential, route to market
(including competition) and costs associated, as well evaluating
further development needs which could form a Phase 2 or future
project.
Phase 2 (closed March 2023)
Around £25.7 million in grant funding was awarded to 6 projects
with £1 million to £12 million available per project. This
leveraged around £14.2 million of private investment through
match funding provided by projects.
Phase 2
projects seek to demonstrate an integrated, low-carbon,
end-to-end system / solution to replace existing red diesel-using
technologies on an operating construction, mining, or quarrying
site. This includes engineering design, build, trial,
decommissioning, market assessment, and knowledge dissemination.
On completion, their solution should reach technology readiness
level (TRL) 7 or
above. Projects run until March 2025.
The programme is funded as part of the £1 billion Net Zero
Innovation Portfolio (NZIP), which runs until 2025.
