Red Diesel Replacement competition: phase 1 (closed to applications)

This competition provides funding for projects developing low carbon alternatives to red diesel for construction, mining and quarrying.


Phase 1 Red Diesel Replacement competition: successful projects


The £40 million Red Diesel Replacement competition 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 will support 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.

The competition is part of the £1 billion Net Zero Innovation Portfolio (NZIP).

It was delivered in 2 phases, both of which are closed.

The Phase 1 competition window opened to applicants in September 2021 and closed in November 2021.

BEIS awarded £6.7 million in grant funding across 17 projects for Phase 1, with up to £460,000 per project. The projects cover technologies within the 3 innovation lots at technology readiness level (TRL) 4 and above:

  • Lot 1: Distribution, storage and energy delivery systems development
  • Lot 2: Development of equipment (components/sub-systems) and fleet management infrastructure (facilities for maintaining, hosting and servicing vehicles)
  • Lot 3: Fuel development

See the list of successful Phase 1 projects.

Contact email:

Published 17 August 2021
Last updated 31 May 2022 + show all updates
  1. Phase 1 successful projects announced.

  2. Added templates of a grant offer letter and a grant funding agreement. Questions 24 to 32 have been added to the questions and answers document.

  3. Questions and answers document published. It answers frequently asked questions and questions from our competition launch webinar on 27 September 2021.

  4. Added competition launch event video and presentation slides.

  5. Grant offer letter template and Grant funding agreement template removed, to be replaced with updated versions by close 1 October.

  6. Red Diesel Replacement competition Phase 1 open to applications.

  7. First published.