Over £31 million in new government funding will support industry to reduce its reliance on fossil fuel and slash carbon emissions, helping it to become greener and cutting energy bills.

The funding announced includes over £6.6 million to help industry move away from using red diesel, also known as gas oil – a type of fossil fuel commonly used for off-road vehicles and machinery, specifically in the quarrying, mining, and construction sectors.

It will see the development of red diesel alternatives, such as e-fuels and green hydrogen, as well as technologies which capture and store energy that would ordinarily be wasted from a vehicle or machine so it can be used instead.

Over £5.5 million is also being invested to develop technologies that support industry to cut back use of high carbon fuels and switch to cleaner power sources, such as hydrogen, electrification or fuel from biomass and waste products

Energy and Climate Change Minister Greg Hands said:

"As we accelerate the UK’s energy independence by boosting clean, home-grown, affordable energy, it’s crucial that our industries reduce their reliance on fossil fuels.

"This investment will help them to not only cut emissions, but also save money on energy bills, on top of supporting jobs by encouraging green innovation across the UK."