Scotland secures £1m+ net-zero funding for HGV hydrogen retrofit

Welcome to Net Zero News, where we bring you the latest developments driving the UK’s transition to a net-zero future. Today we report on a landmark move in Scotland’s heavy goods vehicle sector, as over £1 million from the UK Government’s HGV Market Readiness Fund is being awarded to a consortium of operators, manufacturers, financiers and charge point providers to map out investment pathways for HGV decarbonisation.

In a significant step towards the UK’s net-zero goals, the Department for Transport announced on 14 October that more than £1 million will support collaborative efforts across Scotland to identify strategic investments in low- and zero-emission HGV charging infrastructure. Net Zero News can reveal that this funding aims to accelerate the shift from diesel logistics fleets to battery electric or hydrogen fuel cell alternatives by 2035.

The HGV Market Readiness Fund is designed to provide technical studies and business case development for large-scale fleet electrification or hydrogen refuelling networks. UK Transport Decarbonisation Plan progress highlights the need for over 2,000 high-capacity charge points nationwide by the end of the decade. Scotland’s allocation will focus on port regions, cross-border corridors and key freight hubs, ensuring compatibility with national grid upgrades.

This initiative matters because road haulage accounts for more than a quarter of UK transport emissions. Transitioning HGVs to zero-emission technologies could cut CO₂ output by over 5 million tonnes annually by 2040. Net Zero News understands this forms part of Scotland’s commitment to reduce transport emissions by 37.5% from 1990 levels by 2032, and aligns with the Scottish Government’s 2045 net-zero target.

Stakeholders receiving funding include two major fleet operators, a consortium of EV charge point manufacturers and the Scottish Investment Bank, which will analyse funding models to leverage private capital. The collaboration will also partner with local authorities in Glasgow, Aberdeen and the Highland Council area to evaluate grid capacity and site selection for rapid charging hubs.

This project is strategically linked to the UK’s wider HGV Charging Infrastructure Strategy, published earlier this year. By coordinating localised infrastructure planning with the Office for Zero Emission Vehicles’ national roadmap, the Scottish tranche forms part of a cohesive network designed to serve cross-border freight routes and support the Northern Isles hydrogen corridor.

Communities in key freight regions stand to benefit from reduced noise and air pollution as diesel lorries are replaced with cleaner alternatives. The agricultural and aquaculture sectors in the Highlands and Islands could access cost-effective, locally generated renewable energy for HGV charging. However, challenges remain in ensuring grid resilience and equitable investment across urban and rural areas.

To stay informed on the technical details driving this initiative, see our recent analysis of electric freight corridors (https://news.net-zeroclub.co.uk/2025/10/10/electric-freight-corridors) and our review of the UK Transport Decarbonisation Plan updates (https://news.net-zeroclub.co.uk/2025/09/20/uk-transport-decarbonisation-plan-progress). You can also register for the upcoming Net Zero Club workshop on HGV decarbonisation (https://www.net-zeroclub.co.uk/events/hgv-decarbonisation-workshop) to engage directly with industry leaders.

As the funded studies conclude in early 2026, stakeholders will present detailed investment proposals for infrastructure deployment and fleet transition timelines. These next steps will feed into the national charging network roll-out, setting the stage for large-scale deployment of zero-emission HGVs across Scotland and beyond.

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