Innovate UK, in collaboration with the Department for Transport (DfT), is delivering the Zero Emission Vessels and Infrastructure Round 2 (ZEVI 2): Alternative Fuels competition. This initiative, part of the UK Shipping Office for Reducing Emissions (UK SHORE) programme, offers a share of up to £150 million to UK-registered organisations. The funding supports large-scale innovation projects focused on the development and construction of alternative-fuel vessels and associated port refuelling infrastructure, followed by a mandatory three-year real-world demonstration period (unfunded). The programme aims to position the UK as a global leader in clean maritime technology and accelerate sector decarbonisation.
Program Overview and Objectives
• Aim: To fund UK business-led development and construction of innovative alternative-fuel maritime technologies, followed by a mandatory three-year unfunded demonstration in real-world conditions.
• Delivery Partners: Delivered by Innovate UK (part of UK Research and Innovation, UKRI) on behalf of the Department for Transport (DfT).
• Strategic Goal: Supports the UK Government’s Maritime Decarbonisation Strategy and the UK SHORE programme to establish the UK as a leader in clean maritime technology.
• Scope Focus: This competition strand specifically targets alternative fuel vessels and refuelling infrastructure.
Competition Scope (Alternative Fuels Strand)
• Core Focus: Development and construction of vessels powered by alternative fuels (e.g., hydrogen, ammonia, methanol) and the necessary port refuelling (bunkering) infrastructure.
• System Approach: Projects should demonstrate integrated vessel and infrastructure solutions.
• Priority Theme: Projects involving multiple vessels and/or multiple end users are strongly encouraged.
Funding and Project Scale
• Funding Type: Grant.
• Total Funding: Up to £150 million available across ZEVI 2.
• Project Size: Total eligible project costs must be between £6 million and £60 million.
• Grant Request Limits: Maximum grant per project is £30 million, with no more than £20 million allocated to a single participant.
Eligibility Criteria
• Lead Organisation: Must be a UK-registered business of any size. It must either be, or collaborate with, a UK-registered ship owner, operator, manufacturer, or infrastructure owner/operator (e.g., ports).
• Project Team: Collaborators may include UK businesses, academic institutions, charities, not-for-profits, public sector organisations, or research and technology organisations (RTOs).
• Collaboration Requirement: Projects must involve at least two organisations.
• Academic Institutions: Cannot lead or apply alone.
• Non-Funded Partners: International organisations may participate as non-funded partners.
Project Requirements and Timeline
• Project Start: Must begin by 1 April 2027.
• Grant Claim Period: All grant funding must be claimed by 31 December 2029.
• Demonstration Period: A mandatory three-year, non-funded demonstration must run from 1 January 2030 to 31 December 2032.
• Exploitation: Funded organisations must intend to exploit project results from or within the UK.
Application Rules
• Application Limits: A business may lead only one application across ZEVI 2 and one across CMDC 7. If leading, it may also participate in up to two additional applications as a collaborator or subcontractor.
• Subcontractors: Permitted, including overseas subcontractors with strong justification.
• Resubmissions: Previously assessed applications may be resubmitted once if not materially different.
Scope of Funded Activities
• In Scope:
– Alternative fuel vessels (new build or retrofit)
– Port refuelling (bunkering) infrastructure
– Integrated vessel–infrastructure systems
• Out of Scope:
– Conventional fossil fuel efficiency improvements
– Non-innovative infrastructure
– Certain fuels and vessel types (e.g., fossil-based solutions, military applications, submarines, personal watercraft)
– Technologies not aligned with zero-emission maritime goals
Key Dates and Deadlines
• Competition Opens: 26 March 2026
• Competition Closes: 16 September 2026, 11:00 GMT+1
• Briefing Event: 15 April 2026
• Invitation to Interview: 28 October 2026
• Interview Period: 23 November 2026 to 4 December 2026
• Applicant Notification: 4 January 2027
• Project Start Date: From 1 April 2027
Application and Assessment Process
• Application Structure: Project details, application questions, finances, and project impact.
• Assessment: Reviewed by five independent assessors, with input from relevant maritime authorities where applicable.
• Interviews: Shortlisted applicants attend an in-person interview including a presentation and Q&A.
• Support: Innovate UK provides guidance and accessibility support (recommended contact at least 15 working days before deadline).
This competition represents a major funding opportunity for organisations developing alternative-fuel maritime solutions at scale, particularly those ready for real-world deployment. Applicants must demonstrate strong collaboration, technical innovation, and a clear pathway to commercialisation within the UK maritime sector.