Three new competitions have launched under the UK’s DRIVE35 innovation programme, providing £85 million in grant funding to accelerate the decarbonisation of commercial road transport. These opportunities, opened on 15th July 2025, are designed to support innovations in zero-emission vehicles and supporting systems, spanning heavy goods transport, last-mile delivery, and retrofit solutions. The competitions are part of the UK’s broader strategy to achieve net-zero emissions in transport and foster green industrial growth through real-world demonstrations and technology deployment.
The first of the three competitions focuses on heavy and long-haul commercial vehicles. It aims to support the development and demonstration of battery-electric trucks, hydrogen fuel cell technologies, and associated refuelling or charging infrastructure. This funding call is intended for ambitious projects that can help de-risk the adoption of zero-emission heavy vehicles at scale and facilitate integration into existing fleet and logistics operations. Projects must address both the vehicle technology and its supporting ecosystem—this includes grid connections, refuelling depots, and digital platforms to optimise use. The competition is open to UK-registered organisations, including large manufacturers, fleet operators, infrastructure developers, and research institutions. Collaborative projects are strongly encouraged to ensure system-level innovation. Funding levels typically cover between 40% and 70% of project costs, depending on business size and project type. Projects are expected to last between 18 and 36 months, with proposals due in the autumn. This competition directly aligns with the UK Government’s goal to end the sale of new non-zero emission HGVs by 2040 and develop a robust domestic supply chain for clean freight technologies.
The second competition targets the urban delivery and last-mile logistics sector, supporting the transition from diesel-powered vans to electric and other zero-emission vehicles. It places emphasis on practical, deployable innovations such as depot electrification, battery-as-a-service business models, and digital tools for route optimisation. Projects might involve electrifying an urban delivery fleet, integrating smart charging systems at depots, or trialling new logistics platforms designed to reduce vehicle mileage and emissions. This competition is particularly well-suited to SMEs, start-ups, and mid-sized operators working in fleet services, vehicle conversion, logistics software, or depot infrastructure. Funding is available for feasibility studies, industrial research, and experimental development, typically covering 45% to 70% of costs. Proposals must demonstrate clear potential for emissions reduction, commercial viability, and operational readiness. Like the other competitions, it opened on 15 July 2025, with deadlines expected in the early autumn and project durations ranging from 12 to 30 months. This call supports the UK’s clean cities agenda, tackling both congestion and air quality by promoting scalable, zero-emission alternatives in urban logistics.
The third competition focuses on specialist vehicle retrofit and conversion solutions, aimed at transforming existing diesel-powered vehicles for zero-emission use. This includes sectors such as construction, municipal services, events and utility vehicles, where bespoke or legacy vehicles are still widely used. It also covers the development of retrofit kits, hybrid systems, and conversion platforms to repurpose diesel vehicles into clean alternatives. By investing in this area, the competition supports not only emissions reductions but also cost-effective asset reuse and the development of a UK retrofit supply chain. Projects should involve a combination of retrofit specialists, vehicle operators, training providers, and possibly certification bodies. These projects are eligible for funding that typically covers between 45% and 65% of costs, depending on size and scope. Demonstration of the solution in real-world settings is essential, alongside evaluation of performance, emissions impact, and cost effectiveness. The competition is particularly attractive for retrofit SMEs and solution providers looking to prove the viability and safety of their technologies at fleet scale. Like the other DRIVE35 competitions, it opened on 15 July 2025 with expected deadlines in the autumn and projects running up to two years in length.
Collectively, these three competitions represent a significant strategic investment in clean mobility. By targeting three critical areas—heavy freight, urban delivery, and retrofits—they offer a comprehensive approach to transforming road transport across different use cases and vehicle types. Each competition requires an integrated systems approach, meaning applicants must consider not just vehicle technology, but also how it interfaces with infrastructure, logistics platforms, energy systems, and users. This encourages innovation that is scalable, commercially viable, and aligned with wider net-zero goals.
The timing of these competitions is also important. With the UK Government pushing hard on its transport decarbonisation plan and legislating to phase out internal combustion engine vehicles, industry now has both the regulatory certainty and financial backing needed to take bold steps toward zero-emission operations. The DRIVE35 funding allows businesses to demonstrate their technologies under real operating conditions, gather performance and user data, and refine their business models, all while reducing risk and building market credibility.
Each competition is tailored to different kinds of applicants. Larger OEMs and logistics companies will likely find the heavy-duty vehicle competition most relevant, whereas SMEs, start-ups, and digital innovators may be best suited to the last-mile delivery challenge. Retrofit specialists, vocational vehicle operators, and sustainability-focused service providers will find the retrofit competition a unique opportunity to prove and scale their solutions. What they all share, however, is an opportunity to secure substantial co-funding and build partnerships that can lead to long-term commercial success and environmental impact.
To succeed in these competitions, applicants should begin preparing early. Building a strong consortium is essential, projects will be judged not only on technical merit but also on their commercial potential, alignment with user needs, and ability to deliver measurable outcomes. Applicants should also engage with stakeholders such as fleet users, energy providers, local authorities, and regional innovation hubs to maximise their chances of impact and adoption.
As the UK seeks to lead in the global race to zero-emission transport, these DRIVE35 competitions offer a timely boost for innovators, manufacturers, and service providers alike. They will help to unlock investment, support the creation of green jobs, and demonstrate the viability of clean commercial vehicle solutions across the UK. With the deadline fast approaching, now is the time for ambitious businesses to act.
