Manufacturing & Supply Chain

£77 million funding for new zero-emission vehicle projects

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£77 million funding for new zero-emission vehicle projects

£77 million funding for new zero-emission vehicle projects
May 11
11:01 2023
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The HYER POWER project, to develop a hydrogen fuel-cell range extender for specialist electric vehicles in demanding roles like fire engines and ambulances, is just one of seven pieces of work across the UK that are receiving joint Government and industry backing. The schemes, which range from work on battery-powered buses, to a hydrogen-powered version of the iconic Ford Transit van, will support more than 4,400 jobs across the UK over the next decade, from Bath to Ballymena.

Investing in the development of cutting-edge technologies in key industries will help deliver on the government’s priority to grow the UK economy.

Industry and Economic Security Minister Nusrat Ghani said: “Zero-emission cars, vans and taxis are increasingly common, but this cutting-edge work is going to mean clean, green vehicles designed and built in the UK can increasingly take on the toughest jobs too, from life-saving emergency services, to haulage and public transport.

“Our automotive industry keeps setting the pace globally and seizing the potential of new technologies. Today’s multi-million-pound boost will help them stay ahead of international competition, while delivering on our priority to grow the economy and support high-quality jobs.”

The funding has been awarded through the Advanced Propulsion Centre (APC) Collaborative Research and Development programme, in support of ambitions to build an end-to-end supply chain for zero-emission vehicles (ZEVs) in the UK. £38.4 million of this investment comes from Government, backed by a further £38.7 million from the automobile industry – taking today’s total to just over £77 million.

Joint government and industry funding winners are:

  • HYER POWER – ULEMCO Ltd £7.9 million backing to develop a hydrogen fuel cell range extender for electric vehicles used for specialised and challenging purposes, such as ambulances, fire engines and street sweepers.
  • HEIDI – Bramble Energy Ltd £12.7 million for work to demonstrate a novel fuel cell/battery hybrid powertrain on a double-decker bus, that will be cheaper than the equivalents currently available for large vehicles.
  • FCVGEN2.0 – Ford Motor Company Ltd £16.3 million awarded to design and develop a hydrogen fuel cell-powered version of the Ford Transit van, which will initially be produced at Ford Dagenham.
  • NEXTGENZEBS – Wrightbus £12.7 million backing for new, market-leading technology to underpin battery and fuel cell electric buses.
  • EleVAIT – JLR Receiving £12.6 million to design and develop technology for inverters – a key component in electric vehicles, supporting the continued growth of a UK-based electric vehicle supply chain.
  • CAVENDISH – BorgWarner Awarded £9.8 million for work to speed up the rollout of hydrogen-burning internal combustion engines, as an alternative to diesel, for use in heavy-duty settings.
  • ZETTA – Leyland Trucks Ltd A £5.1 million investment. By better use of automation and advanced testing, Leyland Trucks aim to increase productivity and step up their production of battery electric trucks.

Chief Executive at the APC Ian Constance said: “Investment into these seven collaborative projects continues the work that the UK does very well. Research and development, building the automotive supply chain, pushing the boundaries of clean technology for the road, whilst securing jobs across the country. I’m pleased to have well-known brand names among this £77 million funding round through the APC, as well as innovative SMEs bringing through exciting new developments.”

The announcement comes on top of funding also being invested by the government through the Automotive Transformation Fund (ATF) to develop a high-value end-to-end electrified automotive supply chain in the UK.

This includes unlocking private investment in gigafactories, battery material supply chains, motors, power electronics, and fuel cell systems. The ATF is being delivered by the Department for Business and Trade in partnership with the APC.

The government has committed a record £211 million to battery research and innovation through the Faraday Battery Challenge, to help the sector deliver 100,000 jobs in battery gigafactories and the battery supply chain by 2040. The funding will be delivered by UK Research and Innovation (UKRI) with support from the Faraday Institution, Innovate UK and the UK Battery Industrialisation Centre (UKBIC).

The UK Hydrogen Strategy sets out how government, working with industry, is aiming to develop 10GW of hydrogen production capacity by 2030, for use across the economy. This forms a part of the British energy security strategyfor delivering secure, clean and affordable British energy for the long term.


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