Notice

Competition brief: low emission freight and logistics trial

Updated 13 December 2016

This notice was withdrawn on 21 September 2017

This competition is no longer open. Search current funding opportunities.

1. Dates and deadlines

Competition opens	Monday 11 July 2016
Briefing event for applicants	Thursday 14 July 2016
Registration deadline	Noon on Wednesday 12 October 2016
Application deadline	Noon on Wednesday 19 October 2016

2. The competition scope

The aim of this competition is to trial or develop low emission vehicles in the freight, logistics, utilities and emergency industries.

The competition has 2 streams.

2.1 Stream 1

We will fund industry-led research trials of innovative vehicles or on-vehicle technologies. These must reduce real-world emissions compared with MY16 (model year 2016) series production vehicles.

Projects should trial vehicles and on-vehicle technology already developed to a proof of concept level. These must be ready for testing in the real world with vehicle operators. This is to assess the benefits of the technology before commercialisation at fleet scale. The Office for Low Emission Vehicles (OLEV) is particularly keen to see technologies that provide zero tailpipe emission miles.

We will support small trial fleets of low emission vehicles (HGVs and vans) and their refuelling/charging infrastructure. We will part-fund both:

• the difference in capital cost between the traditional series production vehicle and its low emission equivalent and
• the refuelling/charging point for use by the trial fleet

You must run trial fleets for at least one year and collect usage data throughout that period. A team operating on behalf of OLEV and Innovate UK will analyse this data.

Outcome of Stream 1:

Following the research trials, operators will have first-hand experience of low emission vehicles. They will be able to make informed decisions on future fleet mix in the short to medium term. The ultimate aim is to speed up the adoption of low emission vehicles in these 4 industries.

All projects must contribute the results of the trials, which we will anonymise and release as a general report to the wider industry. The report will summarise the features and benefits of the trialled technologies, as well as the infrastructure required. This will allow others to determine if a technology is suitable for their needs. It will also help inform government policy in this area.

Projects must trial on-vehicle (including trailer) technologies delivering ‘significant’ emissions reduction. This can be a reduction in CO₂e (CO₂ equivalent) or other emissions (provided no adverse impact on CO₂e). Check all emissions in scope. Applications should describe the nature and estimate the size of the emissions reduction (CO₂e or a combination of air quality and CO₂e). Euro 6 (light duty or heavy duty as applicable) emissions should be the baseline for comparison, when calculating emissions reductions.

Projects must also:

• trial technology to test viability in an operational environment
• focus on freight carrying, logistics, utilities or emergency vehicles, ranging in size from N1: Class III (vans 1,760kg to 3,500kg) up to 44-tonne HGVs
• include a commercial vehicle operator
• use either new vehicles, supplied by original equipment manufacturers (OEM), or professionally converted vehicles
• trial at least 2 vehicles for each low emissions technology
• trial a maximum number of vehicles needed to gain enough research data. We expect that up to 30 vehicles per fleet will be enough but we may consider a higher number if justified
• include comparator vehicles that can run similar duty cycles to establish a baseline for evaluation
• monitor trial and comparator vehicles (using telematics or another effective system) for emissions and energy efficiency throughout the trials (covering at least the 4 seasons with adequate data)
• make the trial and comparator vehicles available to an independent test facility (nominated by OLEV and Innovate UK) for instrumentation and testing
• ensure at least 2 vehicles are fully operational, demonstrating the technology with fully functional data collection, for at least 85% of the trial duration
• ensure trial vehicles are safe and legally compliant (with vehicle special orders if required)

Applicants must also:

• state the primary use of the fleet, such as urban, inter-urban or long haul
• show that the technology has a plausible and well-defined route to market
• support collaborative workshops organised by Innovate UK and OLEV, planned for every 6 months, to share learning between projects
• commit to data collection, and the technology service and spares requirements needed to keep vehicles in full operational service during the trials

The competition is open to all types of UK-based freight and logistics fleets, as well as utilities and emergency vehicles. It is open to all on-vehicle technologies for energy efficiency, for example powertrain, electrification of ancillaries, refrigeration, light-weighting, aerodynamics etc.

The competition is open to all technology areas and methods of reducing emissions. The priorities for this trial are:

1. technologies for zero tailpipe emissions; for example, an urban HGV with a 10-mile zero emissions range and a low emission range extender
2. technologies achieving significant reduction of tailpipe CO₂e or other emissions
3. technology achieving significant reduction of CO₂e emissions on a Well-to-Wheel basis (ie including fuel/energy storage, production, processing and delivery)

Depending on the response to this competition, we may apply a ‘portfolio approach’. This is to ensure that we distribute funding across these priorities, and across different types of vehicle operations (such as urban, inter-urban and long haul).

Projects which include energy or fuelling infrastructure to support the vehicle technology are in scope. For example, costs associated with the infrastructure needed to support a trial fleet for CNG, LNG, electric charging, hydrogen refuelling etc.

Projects must show the relevance of the location of and access to this infrastructure. This might include a single depot for one fleet or open access for third parties, enabling greater use within and beyond the trial.

Data collection

The collection and analysis of high-quality operational data is vital for this trial. High quality includes suitable data rates, reliability of systems and accurate sensor calibration. This will enable greater understanding of the benefits of new technologies for emissions reductions in real-world operations.

Funding is conditional on projects providing such data throughout the trial for at least 85% of operation. Trials must operate for at least one year.

We will appoint an organisation to receive and analyse all relevant data (anonymised for publication). It will also conduct selective independent testing of trial vehicles, for performance validation purposes.

Projects must collect data from vehicles when operating and report monthly to this organisation. Projects must also make vehicles available for independent testing on request. For full details of all testing requirements, see the guidance for applicants.

2.2 Stream 2

Stream 2 is for projects to develop innovative and disruptive on-vehicle technology, off-vehicle systems or new business models. These must reduce emissions. Projects based on translating technologies from other applications are also in scope.

All projects developing on-vehicle technology to reduce emissions on vehicles ranging in size from N1: Class III (vans 1,760kg to 3,500kg) up to 44-tonne HGVs are in scope.

Trialling of off-vehicle systems or new business models to reduce emissions from these vehicles are also in scope. For example, systems to minimise empty running or otherwise make efficient use of energy in like-for-like real-world operation.

Projects may be a combination of desk-based research, lab demonstration and on-vehicle demonstration. Projects that do not include on-vehicle demonstration must show a clear route to market. The end customer must be able to show the business case for on-vehicle demonstration and a feasible business model for fleet operation.

Projects with operational vehicles must collect data from vehicles when operating and report monthly to the organisation appointed by OLEV and Innovate UK. Projects must also make vehicles available for independent testing on request. The requirement for availability of vehicles and data is the same as for Stream 1. For full details of all testing requirements, see the guidance for applicants.

3. Projects that we won’t fund

In this competition, we are not funding projects:

• using vehicles already in series production or supported through other means such as the OLEV plug-in van grant
• lacking innovation

The competition will not fund fleets other than freight, logistics, utilities and emergency vehicles. Projects for other types of vehicle (such as off-road, agricultural and passenger-service vehicles like buses) are out of scope.

Fleets outside the UK are not in scope.

Costs for the infrastructure required to trial vehicles are eligible. But projects where infrastructure is the only or primary cost are not in scope.

For Stream 1, we will not fund projects that use technology to cut emissions by improved routing, e-horizon, connected powertrain, usage patterns or other methods of operational efficiency. We may fund this in Stream 2 when the project clearly describes the benefit in like-for-like operation.

4. Find out if you are eligible to apply

To be part of a project, you must:

• carry out your project in the UK
• work in collaboration with others (for example businesses, research organisations and third sector), including at least one commercial vehicle operator

5. Funding and project details

We have allocated up to £24 million to fund innovation projects in this competition.

For Stream 1, research trials of innovative vehicles:

All projects must be collaborative and involve a vehicle operator. A business must lead the project.

We have allocated up to £19 million grant funding for these projects. Projects should last between 18 months and 2 years, with vehicle trials of at least one year. Projects should range in size from total eligible costs of £500,000 to £5 million. We may consider projects outside these ranges. Research organisations must represent no more than 30% of the total project costs.

For Stream 2, innovative and disruptive technology, systems or business models:

All projects must be collaborative and involve a vehicle operator. A business must lead the project.

We have allocated up to £5 million grant funding for these projects. Projects should last no more than one year and range in size from total eligible costs of £250,000 to £5 million. Research organisations must represent no more than 50% of the total project costs.

5.1 Project types

For both streams of this competition, your project may focus on industrial research or experimental development.

For industrial research, you could get:

• up to 70% of your eligible project costs if you are a small business
• up to 60% if you are a medium-sized business
• up to 50% if you are a large business

For experimental development projects which are nearer to market, you could get:

• up to 45% of your eligible project costs if you are a small business
• up to 35% if you are a medium-sized business
• up to 25% if you are a large business

Check if your business fits the EU definition of an SME

6. How to apply

To apply:

• register online
• read the guidance for applicants for this competition
• watch the briefing event recording from Thursday 14 July 2016
• complete and upload your online application on our secure server

We will not accept late submissions. Your application is confidential. An independent panel of experts will assess the applications and select the highest-quality projects.

Read the general guidance for applicants before you apply. It will help your chances of submitting a successful application.

7. Background and further information

The Office for Low Emission Vehicles (OLEV) is a team working across government to support the early market for ultra-low emission vehicles (ULEV). OLEV is providing over £900 million to position the UK at the global forefront of ULEV development, manufacture and use. This will contribute to economic growth and will help to reduce greenhouse gas emissions and air pollution on our roads.

Heavy-goods vehicles and vans contribute 31% of the UK’s domestic transport greenhouse gas emissions. This competition aims to encourage the widespread introduction of low emission vehicles to UK fleets. This will help the UK meet its targets on CO₂e reduction. It will also help reduce other emissions and reducing fleet operating costs.

If you want help to find a project partner, contact the Knowledge Transfer Network

If you need more information, contact the competition helpline on 0300 321 4357 or email us at support@innovateuk.gov.uk