Zero Emission Vessels and Infrastructure 2

Zero Emission Vessels and Infrastructure 2: Energy Efficiency

Funds UK business-led collaborations developing innovative vessel energy efficiency technologies under the ZEVI 2 clean maritime programme.

Innovate UK, working with the Department for Transport (DfT), administers the Zero Emission Vessels and Infrastructure 2 Energy Efficiency strand as a collaborative grant under the UK SHORE (Shipping Office for Reducing Emissions) programme. The competition funds the development and build of innovative vessel energy efficiency technology and accompanying innovative infrastructure upgrades. Total project eligible costs must be between £6 million and £60 million. The maximum grant request per project is £30 million, with no more than £20 million allocated to a single participant. Funding rates vary by organisation size and project type: for industrial research, small organisations can claim up to 70% of eligible costs, medium organisations up to 60%, and large organisations up to 50%; for experimental development (projects nearer to market), rates are up to 45%, 35%, and 25% respectively. Capital equipment for large-scale demonstration projects may be funded at up to 80% grant until 31 December 2029.

Eligibility requires the lead organisation to be a UK registered business of any size. The lead must be, or collaborate with, a UK registered ship owner, manufacturer, or operator. Academic institutions cannot lead or work alone. All partners must be UK registered — as businesses, academic institutions, charities, not-for-profits, public sector bodies, or research and technology organisations (RTOs). Projects must start by 1 April 2027, claim all grant funding by 31 December 2029, and complete a non-funded three-year demonstration running from 1 January 2030 to 31 December 2032.

Applications are submitted through the Innovate UK competition portal. The competition opened 26 March 2026 and closes 16 September 2026 at 11:00am UK time. Applications are reviewed by five independent assessors. Shortlisted applicants are invited to interview (invitations sent 28 October 2026); interview panels run 23 November to 4 December 2026; applicants notified 4 January 2027; projects start from 1 April 2027.

Key practical points: this is a collaboration-only competition — solo applications are not accepted. The lead must be a business, not a university or charity. The £6 million figure is a minimum total eligible cost threshold, not a minimum grant amount — actual grant depends on the funding rate applied to eligible costs. The £150 million total ZEVI 2 pool is shared across three strands (Alternative Fuels, Electric Power, and Energy Efficiency); no per-strand allocation is published.