News Item: New BEIS Funding Competition to Promote Cleaner Energy in Construction

In March 2021, the Chancellor Rishi Sunak confirmed that the construction industry would not be able to use red diesel from April 2022. Since then, HAE EHA has been calling for financial support to assist businesses in moving away from red diesel and investing in new, greener inventory (where it is available and cost effective to do so).

The current capital allowances and extra incentives in the Budget 2021 do not apply to hire businesses so this has left a significant gap in targeted support for the sector and wider construction industry.

Earlier this week, ministers announced measures to encourage the hydrogen economy, and, as part of this approach, the Department for Business, Energy and Industrial Strategy (BEIS) has outlined a new competitive fund to support the development and production of innovative clean energy technologies. 

The £40 million Red Diesel Replacement (RDR) competition will provide grant funding to develop and demonstrate low carbon alternatives to red diesel for the construction, mining and quarrying sectors.

The competition will be delivered in two consecutive phases, with Phase 1 of the competition launching in September 2021. Phase 1 aims to develop component technologies across three innovation lots. There will be a construction industry Stakeholder Engagement Event on the 8th September. More information can be found here.

Please register your interest in attending the Stakeholder Engagement Event or applying for the competition using this expression of interest form. The deadline is Friday 24th September.