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Shipping: Private Sector

Question for Department for Transport

UIN HL1831, tabled on 18 July 2022

To ask Her Majesty's Government what (1) support, and (2) incentives, they are providing for private-sector investment in (a) low-carbon maritime fuels, (b) engine technologies, and (c) energy storage facilities.

Answered on

28 July 2022

The UK has set a net zero by 2050 target across the economy. The 2019 Clean Maritime Plan and the 2021 Transport Decarbonisation outline the Department for Transport’s pathway to net zero in the UK maritime sector. The department is taking a two-pronged approach to maritime decarbonisation: a comprehensive policy and regulatory programme; and R&D funding and investment. In January 2022, we extended the Renewable Transport Fuel Obligation (RTFO), making renewable fuels of non-biological origin for marine use, such as hydrogen and ammonia, eligible for incentives under the RTFO.

Between March 2021 and March 2022, we ran the Clean Maritime Demonstration Competition (CMDC), which allocated over £23m of research and development funding to 55 projects across the UK. The competition included projects focusing on low-carbon fuels, engine technologies and storage facilities.

In March 2022, we announced a further £206m research and development funding for a newly established UK Shipping Office for Reducing Emissions (UK SHORE), which will deliver a suite of interventions aimed at addressing different barriers to maritime decarbonisation over a range of technology-readiness levels. This will help unlock an industry-led transition to clean maritime.