Over £6 million announced to develop red diesel alternatives

The government has announced £6.6 million to help industry move away from using red diesel, also known as gas oil – a type of fossil fuel commonly used for off-road vehicles and machinery, specifically in the quarrying, mining, and construction sectors.

It will see the development of red diesel alternatives, such as e-fuels and green hydrogen, as well as technologies which capture and store energy that would ordinarily be wasted from a vehicle or machine so it can be used instead.

The funding forms part of the Red Diesel Replacement competition, with winners from Phase 1 published on 31 May. Seventeen projects will be funded, focusing on fuel development,  distribution, storage and energy delivery systems development, as well as development of equipment and fleet management infrastructure.

A total of £32.5 million will be available in grant funding for Phase 2, which will open in early 2023 for applicants.