Logistics UK responds as UK government invests £30 million in green shipping

The funds will go towards innovative projects aimed at decarbonising the sector, as part of the Clean Maritime Demonstration Competition (CMDC). Maritime Minister Mike Kane announced the new funding during a visit to Clydeport in Glasgow.

While there, he showcased the FastRig project by Smart Green Shipping – a high-tech wing sail developed in Scotland which can reduce fuel consumption and ship emissions by up to 40 per cent. The project already received £3.3 million in an earlier CMDC round and has since completed successful sea trials.

“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,” said Kane. “We’ve charted a course to net zero shipping by 2050.”

The sixth round of the CMDC forms part of the wider UK SHORE programme, which has already allocated over £136 million to more than 142 organisations. The initiative aims to drive sustainable transformation of the maritime sector, with a strong focus on R&D, innovation and skills development. CMDC funding specifically supports technologies based on hydrogen, ammonia, methanol, electric and solar propulsion.

A prime example is the National Manufacturing Institute Scotland (NMIS), which is working with partners such as Malin Marine Consultants to develop advanced manufacturing techniques for low-emission vessels.

Logistics UK’s Senior Policy Manager Stephanie Haszczyn said: “Logistics UK welcomes the government’s £30 million investment in green shipping as part of the CMDC.

“Sea freight is an essential part of the supply chain and maritime decarbonisation is a major challenge for the sector to address, but funding like this is a welcome step towards reducing emissions.

“Logistics UK’s members have long been calling for support and clarity to decarbonise the maritime sector and government needs to provide the direction to make this change happen.”

NMIS CEO Chris Courtney commented: “Advanced manufacturing is critical to enable companies to scale up novel solutions that deliver emissions reductions and allow the creation of new jobs in these industries of the future.”

Diane Gilpin, CEO of Smart Green Shipping, also stressed the importance of government backing: “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.”

Infrastructure is also set to benefit. Port operator Peel Ports will receive £3 million to upgrade road access to the King George V Dock in Glasgow, to meet growing demands related to wind turbine component handling.

Port Director Jim McSporran sees the investment as “government and industry working together to back innovation, and today’s visit reinforces how Glasgow’s maritime legacy is helping to drive the UK’s clean energy future.”

In addition to CMDC funding, the Clean Maritime Research Hub, a network of 13 UK universities, will receive a further £3.85 million. Part of the funding will go towards a liquid hydrogen facility at Durham University, supporting fundamental research into zero-emission propulsion fuels.