UK government pledges £448 million for green shipping

Transport Secretary Heidi Alexander said the investment will “supercharge growth and jobs in coastal towns and cities, making the UK one of the best places in the world to invest.”

The money will bolster the government’s UK SHORE programme for investing in low-carbon innovation for the maritime industry.

The project was launched in March 2022 with the government announcing a budget of £206 million. A total of £240m has been allocated through the programme to date, benefitting 200 projects across the UK, including scientific research, factory trials, real-world demonstrations and commercial trials.

The government claims the investment has also unlocked a further £110m in direct private investment.

Logistics UK’s Senior Policy Manager Alexandra Herdman said: “With shipping being a difficult sector to decarbonise and with no clear green fuel for the future, significant government investment such as this is welcome news.

“This government funding is an opportunity for maritime businesses to work with partners to develop new solutions for decarbonisation which, without this funding support, would struggle to achieve commercial viability.”

Previously supported projects have included the installation of electric charging points at ports for vessels. These are now in place at Cammell Laird dry dock at Birkenhead in Liverpool and various locations across the south coast and London.

UK SHORE has also supported innovations in low-carbon hydrogen production, ammonia and methanol-based fuels and wingsail attachments for boats. Domestic transport accounts for about 28% of the UK’s terrestrial emissions, and shipping accounts for one fifth of that.

Further to the Department for Transport’s funding, the UK government announced that £700m of private investments were confirmed on the first day of London International Shipping Week, Monday (5 September).

Peel Ports will invest £300m in modernising its Liverpool, Hunterston and Great Yarmouth ports. A further £150m has been pledged by the operators of the Port of Tyne, largely to accommodate new offshore wind and manufacturing facilities. NatPower Marine will invest £250m in shore-side power in the UK, which it claims will support more than 2,000 skilled jobs in engineering, construction, and green technology services.