£150m Clean Maritime Grant Competition Opens – Critical Subsidy Control Steps for Applicants

Beatrice Wood and Oliver Slater discuss the second round of “Zero Emission Vessels and Infrastructure 2 (ZEVI 2): Energy Efficiency”, offering up to £150 million in grant funding for large‑scale demonstration projects.

Innovate UK and the Department for Transport (DfT) has just launched the second round of its flagship clean maritime programme: “Zero Emission Vessels and Infrastructure 2 (ZEVI 2): Energy Efficiency”, offering up to £150 million in grant funding for large‑scale demonstration projects aimed at accelerating the deployment of zero‑emission vessels, ports and supporting infrastructure in real‑world operational environments. Applicants will need to submit proposals that are compliant with the Subsidy Control Act 2022 and (if applicable) the Windsor Framework. Here’s what you need to know.

Grant Competition Opens from 26 March 2026

Innovate UK and the Department for Transport (DfT) to has launched the second round of their flagship clean maritime programme: Zero Emission Vessels and Infrastructure 2 (ZEVI 2): Energy Efficiency, offering up to £150 million in grant funding for large‑scale demonstration projects aimed at accelerating the deployment of zero‑emission vessels, ports and supporting infrastructure in real‑world operational environments.

The grant competition is open from 26 March 2026 to 11:00am on 16 September 2026, giving organisations a six‑month window to structure collaborations, secure partners, and prepare compliant applications. In the short term, interested organisations can register for a live briefing event from Innovate UK here.

What the competition offers

ZEVI 2 will fund ambitious, collaborative projects that:

• Deliver eligible project costs between £6m and £60m
• Start no later than 1 April 2027
• Spend all grant funding by 31 December 2029
• Run a three‑year unfunded demonstration from 1 January 2030 to 31 December 2032
• Request no more than £30m in grant, with up to £20m per single participant

Projects must involve at least one UK‑registered business and one additional funded partner. Academic institutions cannot lead.

Why Subsidy Control will be a key consideration for Applicants

Innovate UK has confirmed that all funding awarded in this competition will constitute a Subsidy, and will therefore be subject to the Subsidy Control Act 2022 and, where applicable, EU State aid rules under the Windsor Framework.

Applicants will be specifically required to answer questions on subsidy classification and compliance within the application form. Ensuring the correct classification is not optional – errors can:

• delay project assessment;
• render an application ineligible; or
• result in Innovate UK needing to with a funding award at a later stage.

How we can assist

Given the scale of funding available and the potential complexity of subsidy control requirements, obtaining early legal advice will be important for applicants wishing to submit a compliant proposal. The competition’s guidance notes confirm that if an organisation is unsure about its obligations under the Subsidy Control Act 2022 (or, where applicable, State aid rules), it should take independent legal advice.

Please get in touch if you are interested in applying for this opportunity and require assistance in relation to your subsidy control and/or State aid (Windsor Framework) obligations.

Beatrice Wood and Oliver Slater are Associates at Sharpe Pritchard LLP.

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