DRIVE35 Funding to Boost Zero-Emission Vehicle Innovation

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.

by Dayne Hodgson

New £10M Opportunity for UK Innovators

On 7th July 2025, Innovate UK launched an exciting new funding opportunity aimed at helping early-stage UK businesses bring their groundbreaking technologies closer to market. The Growth Catalyst Early Stage: New Innovators competition will provide up to £10 million in funding to UK-registered micro and small businesses that have not previously received Innovate UK project funding. This initiative is designed to help high-potential startups progress toward becoming high-growth, scalable businesses. Applications are open now and must be submitted by 11:00am on Wednesday, 6th August 2025.

The competition is part of Innovate UK's wider Growth Catalyst programme, which pairs grant support with targeted business development support delivered through Innovate UK’s Business Growth (formerly EDGE) and Business Connect teams. By combining funding and tailored mentorship, Innovate UK aims to help early-stage firms accelerate their innovation journeys, validate their commercial ideas, and lay the foundations for scale-up.

Each successful applicant can receive between £25,000 and £50,000, covering 100% of eligible project costs. This funding will be delivered through a phased payment model: 70% is issued at project start, 20% after evidence of spend, and the final 10% upon successful project completion and approval. Projects must start on 1st November 2025 and run for a duration of 3 to 6 months, with a strict end date of 30th April 2026.

To qualify, applicants must be UK-registered micro or small businesses (typically under 50 employees) that have not previously received Innovate UK funding for a project, though previous awards through initiatives such as Young Innovators, Catapults, or Business Growth are permitted. This competition is ideal for startups at a formative stage of development, seeking to demonstrate proof of concept or early commercial traction.

The scope of the competition focuses on innovations that align with at least one of the UK government’s five critical technologies:
• Artificial Intelligence (AI) and Machine Learning (ML) – including new AI tools or innovations in trusted and responsible AI.
• Semiconductors – such as UK-based advancements in semiconductor design, materials, or manufacturing processes.
• Future Telecommunications and Advanced Connectivity – including technologies like photonics, open and interoperable networks, and cyber-secure or quantum-safe communications.
• Quantum Technologies – spanning scalable quantum computing platforms, quantum-classical hybrid algorithms, and applied quantum systems.
• Engineering Biology – involving synthetic biology, bioengineering tools, and novel sustainable biomanufacturing approaches.

Eligible projects must be business-led, UK-focused, and capable of demonstrating clear innovation, commercial potential, and societal or economic benefit. Projects must deliver more than academic research; Innovate UK is looking for solutions that show promise for commercial application and real-world impact.

Applications will be assessed across four core areas, each weighted equally:
1. The Idea – how innovative the concept is, the problem it solves, its market potential, affordability, and appeal to investors or customers.
2. Impact and Added Value – including how the project will benefit the applicant’s business, the UK economy, society or the environment, and why public funding is necessary.
3. Business Resources and Capabilities – an evaluation of the team’s ability to deliver, routes to market, and how the business addresses equality, diversity and inclusion.
4. Work Packages and Costs – clarity and justification of costs, project milestones, risk assessment, and freedom to operate from an IP perspective.

Applications are submitted online and must also complete non-scored sections relating to financial assistance declarations, compliance with animal welfare policies, export controls, and national security considerations. Subcontracting is allowed within the UK and internationally, but overseas suppliers must be justified with evidence that UK alternatives were explored.

Key dates for the competition are as follows:
• 7th July 2025 – Competition opens
• 8th July 2025 – Pre-recorded briefing available
• 6th August 2025 (11:00am) – Deadline for submissions
• 2nd September 2025 – Applicants notified of outcomes
• 1st November 2025 – Project start date

One important condition is that applicants can only submit one application to this competition. If a business submits more than one proposal, only the first will be considered. Additionally, the funding is classed as Minimal Financial Assistance (MFA), meaning a business must not have received more than £315,000 in public funding over the past three financial years.

This competition forms part of a broader government effort to catalyse innovation in sectors seen as essential to future economic growth and national resilience. By focusing on the five critical technologies (AI, semiconductors, connectivity, quantum, and engineering biology) the UK aims to secure global leadership in emerging markets.

Applicants are strongly encouraged to align their projects closely with one or more of these strategic areas and to clearly demonstrate how the funding will help them make significant progress toward commercialisation. Innovate UK is particularly interested in projects that can show:
• A clear route to market or customer validation
• The potential to unlock future private investment
• Societal or environmental benefit
• A strong case for public support to de-risk early innovation

Businesses interested in applying should act quickly, as the deadline is fast approaching. With only one application permitted per business and a strong focus on quality, clarity and strategic alignment, early preparation and careful planning are essential to success. For a free consultation to discuss your project idea, contact RedKnight today.

by Dayne Hodgson

Future Leaders Fellowships Round 10

Driving Research and Innovation Leadership

UKRI Future Leaders Fellowships (FLF) programme is back with Round 10. One of the UK’s most prestigious funding schemes designed to empower the next generation of research and innovation talent. With up to £110 million in grant funding available, this round is set to support outstanding individuals with the vision, drive, and capability to become world-leading leaders in their field.

Applications for Round 10 open on 23^rd June 2025 and close at 11:00am on 5^th November 2025.

What Is the Future Leaders Fellowship?

The FLF programme provides sustained, flexible support to early-career researchers and innovators working across all sectors. Its overarching aim is to retain, attract, and nurture future talent, providing a springboard for the next wave of high-impact research and commercially significant innovation.

Each fellowship offers up to £3 million in funding over a four-year term, with the option to apply for a further three years of support. Unlike many grants, FLF is open to individuals working in academia, industry, public sector, and charitable organisations alike, encouraging cross-sector mobility and knowledge exchange.

Aims of the Programme

The FLF scheme seeks to:

• Develop the next wave of high-potential leaders across research and innovation.
• Foster ambitious, original, and interdisciplinary work that would otherwise be hard to fund through standard routes.
• Bridge sectors by supporting work that spans academia, business, and public or third sectors.
• Encourage long-term career development, giving researchers the time and resources to build a robust portfolio.
• Support mobility, enabling fellows to move between sectors or institutions to maximise impact and career progression.

This combination of financial support and long-term vision positions the FLF as a unique and highly impactful programme within the UK’s innovation funding landscape.

Scope and Thematic Focus

Round 10 continues UKRI’s commitment to supporting transformative work across all disciplines and sectors. However, the guidance outlines several key themes and priorities, encouraging applicants to consider challenges with long-term economic and societal relevance.

The programme encourages proposals that:

• Advance the UK's net zero goals, particularly through innovations in clean energy, sustainable manufacturing, or environmental resilience.
• Strengthen national security and resilience, including cybersecurity, advanced materials, or critical infrastructure.
• Enhance health and wellbeing, especially in areas aligned to NHS priorities, data-driven healthcare, or personalised medicine.
• Support technological sovereignty, such as artificial intelligence, semiconductors, quantum technologies, and photonics.
• Tackle inclusive growth, aiming to reduce regional inequality or promote diversity in research leadership.

While the programme remains open to all innovative topics, these themes reflect UKRI’s strategic priorities and global challenges where future leadership will be vital.

Who Can Apply?

Applicants must be hosted by a UK-based organisation. This includes:

• Higher education institutions
• Businesses
• Catapults and research and technology organisations (RTOs)
• Charitable organisations
• Public sector bodies (such as the NHS, government agencies, or local authorities)

You don’t need a PhD, and there’s no restriction on the number of years since your last degree. Instead, UKRI is looking for people who:

• Have a compelling track record relative to their career stage.
• Are transitioning to or establishing independence.
• Are proposing ambitious, original work that goes beyond the norm in their discipline or sector.

Importantly, applicants must not already be established research or innovation leaders (for example, leading a significant grant or commercial R&D portfolio).

Funding Offer

Applicants can request between £100,000 and £3 million in grant funding to cover:

• Salary (for both the fellow and team members)
• Research and development costs
• Equipment and infrastructure
• Training, mobility, and collaboration activities

All work must be carried out in the UK, with project outputs expected to deliver benefit from or within the UK. Fellows are encouraged to explore secondments, international collaborations, and inter-sector mobility where it enhances impact.

Projects must last a minimum of four years. A further three years of funding may be available via a separate process if significant progress has been demonstrated.

Application Process

There are two application routes:

• Academic applicants must apply via the UKRI Funding Service.
• Non-academic applicants (e.g., business or third sector) must apply via the Innovate UK Innovation Funding Service (IFS).

The application consists of a comprehensive proposal, outlining:

• The originality, feasibility, and strategic value of your proposed programme.
• How the fellowship will catalyse your progression to research/innovation leadership.
• Your host organisation’s commitment to supporting your career development.
• The anticipated impact of your work, whether academic, commercial, or societal.

Applicants will also need to submit a host organisation statement and details of career development support.

Assessment Criteria

Proposals will be assessed by a diverse panel of expert reviewers and interviewers against criteria including:

• Vision and ambition
• Leadership potential
• Methodological rigour
• Contribution to UKRI’s strategic priorities
• Host organisation support and career trajectory

As funding is limited, only the most competitive and strategically aligned proposals will be funded.

Supporting Diversity, Equity, and Inclusion

UKRI is committed to advancing equality, diversity and inclusion (EDI) through its funding mechanisms. Applications are encouraged from underrepresented groups, and adjustments will be made where needed to ensure an accessible application process.

Applicants with disabilities or long-term conditions are encouraged to contact Innovate UK at least 15 working days before the closing date to arrange reasonable accommodations.

Why This Fellowship Matters

At a time when the UK is doubling down on science and technology-led growth, the FLF programme stands out as a bold investment in people. It offers individuals the rare opportunity to:

• Build a long-term, independent career track.
• Develop multidisciplinary, cross-sector programmes of work.
• Shape national and global priorities across industry, academia, and public policy.

Whether you are a pioneering engineer developing clean battery tech, a biomedical researcher tackling health inequities, or an entrepreneur driving AI adoption in public services, the FLF can be the vehicle that propels your ideas from concept to impact.

To discuss your project idea in more detail, contact RedKnight today for a free consultation.

by Dayne Hodgson