Over £1 Million Awarded to Drive HGV Decarbonisation in Scotland

More than £1 million from Scotland’s HGV Market Readiness Fund is being allocated to support collaborative projects aimed at cutting emissions from heavy goods vehicles.

The fund, launched in July, has two strands: SME Fleet Analysis Support, which remains open for applications until 9 December 2025, and the HGV Consortium Builder, which closed in August. Eight consortia have now been awarded funding through the latter to help accelerate the transition to cleaner HGV operations.

The SME Fleet Analysis Support programme is designed to give smaller operators access to expert advice and guidance to identify practical pathways to decarbonisation.

Cabinet Secretary for Transport Fiona Hyslop welcomed the response from industry:“The response from the sector to the HGV Market Readiness Fund has been strong, with innovative and high-quality consortium projects proposed. I am pleased to award more than £1 million to eight different consortia to support their collaborative decarbonisation efforts – and to do so during Scotland’s Innovation Week and just ahead of Climate Week.

“These groups will work to develop business cases for investment into HGV decarbonisation in Scotland and will expand their membership to support operators of all sizes. The SME Fleet Analysis Support strand remains open and I strongly encourage applicants to come forward to benefit from both financial support and industry expertise to explore their options.”

Among the successful bidders was Neot, whose UK Director, Philip Valarino, said:“We are delighted to be selected by Transport Scotland under the HGV Consortium Builder scheme. This marks an important step in our mission to accelerate the transition to zero-emission HGV fleets and supporting infrastructure. We look forward to working with our e-Motion consortium partners to unlock investment and deliver meaningful progress.”

Another successful project was the Telford Consortium, led by Aegis Energy. Co-Founder and CEO Michael Shaw said:“We are excited to launch the Telford Consortium with the clear aim of building an investment-ready business case that can supercharge HGV route electrification in Scotland and deliver both public-access and depot-based charging at the lowest taxpayer cost.

“Transport Scotland is making it possible to tackle the chicken-and-egg challenge of HGV electrification by integrating fleet demand with infrastructure development.

Through collaborative initiatives like this, we can overcome key barriers such as cost and lack of charging sites, helping Scottish fleets lead the way in low-carbon logistics.”

The HGV Market Readiness Fund is part of Scotland’s broader strategy to decarbonise transport and position its freight sector at the forefront of the transition to net zero.