UK GOVERNMENT PLEDGES £30m TO DECARBONISE SHIPPING

Jul 25, 2025 | Maritime business news

The sixth round of the UK Government’s Clean Maritime Demonstration Competition (CMDC) will benefit various companies though £30m funding to support the development of clean maritime fuels and technologies such as ammonia, hydrogen, methanol, solar and electric.

Investment in green fuels not only supports the decarbonisation of shipping, helping cement the UK as a clean energy superpower, it also revitalises coastal communities.

Maritime Minister Mike Kane said: “It’s so exciting to see investment in green fuels and technologies spurring on skills, innovation and manufacturing across the UK, delivering on our Plan for Change missions to kickstart economic growth and become a clean energy superpower. We’ve charted a course to net zero shipping by 2050 and this £30m will be crucial in supporting the green fuels and technologies of the future, so we can clean up sea travel and trade.”

Diane Gilpin, CEO Smart Green Shipping (SGS), one of the companies to benefit from previous funding, said: “CMDC3 support enabled SGS, a Scottish based business, to demonstrate the safety and robustness of FastRig, our Clyde built wingsails, and to build out our digital decision-making platform, FastReach, which underpins our unique wind-as-a-service proposition. Over the last 3 years SGS has invested £7.6 million in R&D, 60% of that in Scotland. We’ve drawn upon engineering design skills in adjacent sectors like renewables and oil and gas, and digital expertise created in Scotland’s vibrant tech community. We are also working alongside the National Manufacturing Institute of Scotland to design circular manufacturing solutions to reduce embedded emissions and minimise use of precious materials while creating good green jobs as part of a sustainable just transition.”

Mike Biddle, Executive Director, Net Zero, Innovate UK, said: “Congratulations to the awarded projects from Round 6 of the Clean Maritime Demonstrator Competition – a great opportunity for UK innovators to take part in a world-renowned maritime transport R&D grant funding programme. Innovate UK looks forward to working with partners to support these projects focused on the ever-more prevalent issue of decarbonisation with emphasis on a range of physical, digital, system and skills-based innovation.”

The Clean Maritime Research Hub, a consortium of 13 UK universities, will received £3.85m to continue its research, and support the installation of a liquid hydrogen facility at Durham University. The centre will develop the maritime sector’s understanding of the potential impact of liquid hydrogen – which is emission free – in the clean maritime transition.

Companies in the South of England will benefit too. The funding was welcomed by Maritime Solent, representing 27 companies in the region which will receive assistance. The projects will explore renewable energy technologies and future fuels such as electric vessels, methanol, ammonia and hydrogen; optimisation of machine learning and AI to maximise efficiency, as well as the UK’s first future fuels training framework.

Stuart Baker, Maritime Solent MD, said: “Our region has an exceptional track record in maritime innovation and green technologies, and organisations based here have once again been incredibly successful in demonstrating why they are leading the way. In the long-term, the green technologies that emerge from the Solent’s world-leading maritime cluster will ensure that the region and the UK retain a strategic position on the global maritime stage.”

Winning organisations from the Solent region include: Associated British Ports, Cape Horn Engineering, Carisbrooke Shipping, Chartwell Marine, Ecomar Propulsion, Houlder, Lloyds Register EMEA, Seacat Services, Southampton Solent University, University of Southampton and Wärtsilä UK.

Image: Offshore renewables are one of the sectors benefiting from £30m of UK Government investment (source: Maritime Solent)

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