Red Diesel Replacement competition

Red Diesel Replacement competition

The Red Diesel Replacement competition aims to accelerate the commercialisation of low carbon red diesel alternatives. The £40 million Red Diesel Replacement competition aims to support the development and demonstration of low carbon fuel and system alternatives to red diesel for the construction, and mining and quarrying sectors. The competition will support the decarbonisation of these high-impact sectors that will be affected by the partial removal of the entitlement to use red diesel and rebated fuels from April 2022. The competition is being run by the Department for Business, Energy & Industrial Strategy, and is part of the £1 billion Net Zero Innovation Portfolio.

The purpose of the expression of interest is to raise early awareness of the competition and to gauge the level of interest. You can express your interest by following the steps below.

See: Red Diesel Replacement competition: scope of the call – GOV.UK (

You may also qualify for a significant government rebate for the time and money spent on creating your new product. Even loss-making initiatives may qualify.

Rebecca Heap, Senior Research & Development Manager within Beavis Morgan’s Research & Development (R&D) Tax Relief team, explains: “There is a huge variety of government support and incentives available to businesses to assist their innovations and projects.  It can be very challenging for businesses to keep on top of what is available and relevant.  Our team look to align opportunities and obtain additional funding for our clients, making them aware of the various schemes available and enabling government support to be more accessible”

For further information or to arrange a no obligation preliminary meeting on how your company could qualify under the R&D Tax Relief scheme, please contact Rebecca HeapSteve Govey or a member of our R&D Tax Relief team. You may also wish to view our R&D Tax Relief – Recent wins for our clients Summer 2021 update.