Decarbonising UK Logistics: 2025 Grants, Schemes & Fuel Alternatives

Here’s a comprehensive breakdown of the latest grants, infrastructure schemes, and innovation funding opportunities for logistics providers ready to lead the charge in 2025.

Plug-In Van & Truck Grant – Up to £16,000 per Vehicle

The UK government has extended the Plug-In Van and Truck Grant through 2027, offering up to £16,000 toward the purchase of qualifying electric vans and HGVs. This directly supports logistics firms transitioning away from diesel.

• Eligibility: Medium to heavy commercial EVs

• Funding: Up to £16,000 per vehicle

• Deadline: Ongoing through 2027

Depot Charging Scheme – Up to £1 Million for EV Infrastructure

Launched in July 2025, the new Depot Charging Scheme funds up to 75% of EV charger installation costs, including supporting infrastructure like civil works and electrical upgrades.

• Available Funding: Up to £1 million per applicant

• Eligible Costs: Hardware, site upgrades, energisation

• Application Deadline: 28 November 2025 (or until funds are exhausted)

• Tip: Early application is crucial—demand is high.

Alternative Fuels – Hydrogen, HVO, and LPG

The Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme, with £200 million in funding, backs real-world trials of hydrogen and electric HGVs. Additionally, companies can explore interim options like:

• HVO (Hydrotreated Vegetable Oil)

• Bio-LPG

• Dual-fuel hydrogen retrofits

These can reduce emissions without full vehicle replacement, and several successful pilots are already underway.

Depot Energy Efficiency: Solar & Heat Pumps

While there’s no dedicated national grant for depot solar or heat pump upgrades, opportunities exist through the £1.425 billion Public Sector Decarbonisation Scheme, especially for businesses working with public sector partners or logistics parks.

• Support Options: Solar PV, heat pumps, energy management systems

• Best Route: Leverage partnerships or check local schemes

Research, Innovation & Emissions Tracking

For companies looking to innovate or refine emissions tracking, several programmes can help:

• TRIG (Transport Research & Innovation Grants) – Up to £45,000 per project

• Innovate UK – Large-scale demonstrator funding

• Sustainability Reporting Tools – Some funded by government or trade bodies and local government funding for the SBS Net-Zero Program.

These support R&D in decarbonisation, automation, and smart logistics tech.