Red Diesel Replacement competition phase 2

Funding for projects developing low carbon alternatives to red diesel for construction, mining and quarrying.

The Department for Business, Energy & Industrial Strategy (BEIS) has launched phase 2 of the Red Diesel Replacement competition. It aims to support the development and demonstration of low carbon fuel and system alternatives to red diesel for the construction, and mining and quarrying sectors.

The competition supports the decarbonisation of these high-impact sectors that will be affected by the partial removal of the entitlement to use red diesel and rebated fuels from April 2022.

A total of £32.5 million is available in grant funding for Phase 2, with up to £12 million per project. BEIS looking to fund around three to five demonstration projects up until March 2025.

Phase 2 eligibility

Projects must demonstrate a low carbon integrated system that includes multiple component technologies from fuel generation/production, distribution, storage and delivery, and end-use on a construction and mining/quarrying site.

Projects must demonstrate that the system is at technology readiness level 7 (TRL 7) upon completion.

How to apply

Find out more about the Red Diesel Replacement competition phase 2 and how to apply.

First published 25 January 2023