Government Releases £30m to Decarbonise Sea Travel

Coastal communities and businesses across the country are set to benefit from £30m of new decarbonisation funding.

The funding comes from the latest round of the government's Clean Maritime Demonstration Competition (CMDC6), launched today. CMDC is designed to support clean maritime technologies including electric, hydrogen, ammonia, methanol, wind power and more.  

Previous rounds of the competition have seen funding delivered to over 300 organisations, bringing in more than £100m of private investment across the UK.   

Successful projects have included the installation of Britain's first electric chargepoint network across ports in the South West; the largest ever retrofit of a hydrogen research vessel in Wales, and the installation of a state-of-the-art carbon capture system on a vessel. 

Maritime Minister, Mike Kane said:    

“This new £30m investment is part of our Plan for Change - growing the economy and making Britain a Clean Energy Superpower. 

“I’m proud to see this funding boost growth and create jobs throughout the UK, as well as ushering in an era of zero-emission shipping.” 

Yesterday the Maritime Minister visited Hull to see how the city has benefited from £3.7m of CMDC funding through one of the programmes flagship projects, GT Wings’ AirWing. The innovative wind propulsion system has been built and delivered locally at Alexandra Dock and will reduce emissions on vessels by up to 30%.   

The first AirWing is being assembled at the MMS Docks in Hull and will be installed on a Carisbrooke Shipping vessel, with sea trials scheduled for March 2025.     

This groundbreaking project is creating opportunities for skilled workers and bringing economic activity to the region, positioning Hull as a hub for maritime innovation.   

Innovate UK will open the sixth round of the CMDC on 22 January. The application window will close on 16 April.   

Mike Biddle, Executive Director, Net Zero at Innovate UK, said:

“Innovate UK is delighted to partner once again with the Department for Transport to deliver the latest instalment of the Clean Maritime Demonstration Competition. 

“CMDC Round 6 is a great opportunity for UK innovators to take part in a world-renowned maritime transport R&D grant funding programme. The competition focusses on the ever-more prevalent issue of decarbonisation within the industry and we’re looking forward to seeing participation from across the maritime transport sector and beyond, focussing on physical, digital, system and skills-based innovation.”

George Thompson, CEO of GT Wings, said:

"We’re extremely excited about the imminent launch of AirWing™, our next-generation, compact wind propulsion technology designed to help even the most challenging ocean-going vessels decarbonise by harnessing wind power.

“This progressive step has been made possible thanks to the support of the Clean Maritime Demonstration Competition, which recognised the transformative potential of this innovation and GT Wings’ ability to scale it for market impact.

“With the UK leading the way in modern wind propulsion, it’s an exciting time to be driving fresh innovation in this space."

Captain Simon Merritt, Senior Fleet Manager at Carisbrooke Shipping Ltd, said:

“We look forward to the first AirWing being installed on our cargo ship this month, significantly reducing fuel consumption and emissions.

“This project has been accelerated with funding from Department for Transport and Innovate UK under CMDC Round 4. It demonstrates the power of collaboration between leading British companies, turning innovative ideas into real solutions to decarbonise the maritime industry while creating job opportunities in the UK.”

The sixth round of funding brings the total invested through the CMDC to £159 million, accelerating the vast economic benefits that green maritime funding has on local jobs, industries and economies.    

CMDC funding comes from the £236m UK Shipping Office for Reducing Emissions (UKSHORE) programme which is focused on decarbonising the UK maritime sector through research and development. Innovate UK is the delivery partner for CMDC and will manage the distribution of funds to successful applicants.