The Minister for Transport, Eamon Ryan TD has announced new grants to support business to switch from diesel heavy duty vehicles to electric or alternatively fuelled vehicles.

The €2m Alternatively-Fuelled Heavy Duty Vehicle (AFHDV) Purchase Grant Scheme is being introduced as part of the Government’s plan to decarbonise the transport sector and will support the owners of large vans, trucks, buses, coaches and refuse collection vehicles to switch to battery electric, plug in hybrid, gas or hydrogen fuelled vehicles.

Minister for Transport, Eamon Ryan TD said: “The transport sector has a significant role to play in helping Ireland transition to a low carbon economy by 2050. In 2019 alone, the HDV sector contributed almost 20% of Irish land transport emissions. There is an urgent need to help reduce reliance on diesel and support a major shift towards alternatives which will decarbonise the sector. This is a first step which we will follow up in the years to come.”

Minister of State Hildegarde Naughton TD added: “The scheme will reduce the cost difference between diesel and alternatively fuelled vehicles, supporting operators in making the move to cleaner vehicles. Aside from reducing HDV emissions, the transition will drive an awareness around newer and cleaner technologies, and create demand for alternative fuel systems and infrastructure.”

Companies may be eligible for support up to the value of €500K and/or 20 heavy duty vehicles. The alternative fuel types supported under the scheme are:

• Fuel Cell Electric Vehicles (FCEVs)

• Battery Electric Vehicles (BEVs)

• Plug in Hybrid Vehicles

• Compressed Natural Gas (CNG)

• Liquified Natural Gas (LNG)

The amount awarded to companies and enterprises will be a calculated percentage of the difference in price between an AFHDV and its diesel equivalent. The percentage will be calculated based on 1) the size of the enterprise applying 2) the type of vehicle that the applicant intends to buy and 3) whether the applicant has already received grants under the scheme.

Peter Walsh, CEO of Transport Infrastructure Ireland said: “This is an important initiative in helping to reduce land transport emissions and TII welcomes the opportunity to assist.”