Clean Maritime Plan Grants for Zero-Emission CTVs

What is the Clean Maritime Plan?

The UK Clean Maritime Plan (CMP) is the Government's roadmap for achieving net-zero maritime emissions by 2050. It was originally published in 2019 and updated in 2022 with more specific targets and funding commitments. The Plan is co-owned by DEFRA and the Department for Transport (DfT) and sits alongside the broader Net Zero Strategy, the Transport Decarbonisation Plan, and the UK's obligations under international maritime law (IMO MARPOL and the IMO 2023 GHG Strategy).

For vessel operators and fleet owners, the most practically significant element of the Clean Maritime Plan is its grant funding programmes - specifically the Clean Maritime Demonstration Competition (CMDC), which has funded over 100 zero-emission maritime demonstrator projects across three rounds since 2021.

Eligible Vessel Types

Electric / Battery CTVs

Battery-electric crew transfer vessels are the highest-priority category for CMDC funding. Several 24m electric CTV demonstrator projects have been funded in CMDC Rounds 1–3. Zero-emission operation over a full working day on a single charge is the key technical requirement.

Hydrogen Fuel Cell OSVs

Hydrogen-powered offshore support vessels are an emerging category with strong grant support appetite. Demonstrator vessels proving the commercial viability of hydrogen propulsion in offshore wind operations are a CMDC priority.

Hybrid CTVs and SOVs

Hybrid electric-diesel vessels reducing emissions by 50%+ compared to conventional propulsion may qualify, depending on the specific competition criteria. Hybrid demonstrators are generally funded at lower levels than full zero-emission builds.

Zero-Emission Electric Ferries

Domestic passenger ferries (CalMac routes, Mersey, Clyde etc.) operating on zero-emission propulsion are a major focus of Clean Maritime Plan funding. Separate from the offshore wind CTV/OSV sector but relevant for operators active in both markets.

Typical Grant Amounts

Grant amounts depend on the competition round, project category, and the strength of the application. Indicative levels based on previous CMDC rounds:

Small demonstrator projects (£500k–£2m total project cost): grants of 40–50% of eligible costs, up to £500,000
Medium demonstrator projects (£2m–£5m total project cost): grants of 30–40% of eligible costs, typically £600,000–£1.5m
Large flagship projects (£5m+): grants assessed individually; applicants should budget for 20–30% grant support alongside commercial debt and equity

How to Stack Grant and Commercial Finance

Combining Clean Maritime Plan grant funding with commercial debt is standard practice for zero-emission vessel projects, but requires careful structural planning. The key considerations are:

Drawdown alignment: Grant drawdowns are typically milestone-based (design completion, keel laying, launch, delivery). Commercial loan drawdowns must align with - or bridge - grant milestone payments to avoid liquidity gaps during the build.
Security: Some grant agreements restrict the ability of the grant recipient to charge the funded asset as security for commercial debt. CMDC grant terms must be reviewed carefully before agreeing commercial security arrangements. In most cases, first charge over the vessel is permissible but must be notified to Innovate UK.
Grant conditions: CMDC grants often include conditions on vessel operation (minimum zero-emission operation percentage), data sharing with the DfT, and restrictions on asset disposal. These conditions must be factored into the commercial finance facility terms.
DBF's role: We liaise directly with Innovate UK grant managers and commercial lenders to ensure the co-finance structure is compliant with both grant and lending conditions from day one.

Next Steps: Grant and Co-Finance

If you are considering a zero-emission CTV or OSV build and want to explore Clean Maritime Plan grant funding alongside commercial finance, the starting point is a conversation with DBF. We will assess whether your project is likely to qualify for grant funding, advise on the best competition to apply to (and when), and structure a commercial finance facility that complements the grant timeline from the outset.

We do not charge for initial consultations, and our brokerage fee is only payable on successful completion of the commercial finance element.

Zero-Emission CTV or OSV? Start Here.

DBF specialises in co-finance arrangements that stack Clean Maritime Plan grants with commercial debt efficiently. Talk to us before you apply.

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Frequently asked questions

What is the Clean Maritime Plan and who administers it?

The Clean Maritime Plan is the UK Government's strategy for decarbonising the maritime sector, published by DEFRA and the Department for Transport (DfT). It includes grant funding programmes - operated through bodies including Innovate UK and the Clean Maritime Demonstration Competition (CMDC) - to support the development and deployment of zero-emission vessels, zero-emission port infrastructure, and clean maritime technology. The Plan is aligned with the UK's commitment to reach net-zero emissions by 2050.

What types of vessel qualify for Clean Maritime Plan grant funding?

The Clean Maritime Demonstration Competition has funded electric ferries, hydrogen fuel cell vessels, battery-electric CTVs, wind-assisted propulsion retrofits, and onshore power supply (OPS) infrastructure. Zero-emission CTVs are a priority category - several demonstrator CTV projects have received CMDC support. Zero-emission SOVs and other large OSVs may qualify for larger-scale demonstrator funding under dedicated offshore wind support programmes.

How much grant can be received for a zero-emission CTV build?

Grant amounts vary by competition round and project type. Under the Clean Maritime Demonstration Competition (CMDC), demonstrator projects have received grants covering 30–50% of total eligible project costs. For a £2m zero-emission CTV build, this could represent £600,000–£1,000,000 of non-repayable grant funding. However, grants are competitive - not all applications succeed - and the process requires a detailed technical and commercial case. DBF helps clients understand which programmes they may qualify for before committing to an application.

Can Clean Maritime Plan grant funding be combined with commercial finance?

Yes. Grant funding and commercial debt are not mutually exclusive - in fact, combining grant and debt is a standard approach for zero-emission vessel projects. The commercial lender needs to understand the grant drawdown timeline and ensure the facility drawdown schedule is aligned. Grant conditions must also be checked to ensure they do not restrict the grant recipient's ability to charge the vessel as security. DBF has structured co-finance arrangements for zero-emission maritime projects and can manage the interface between grant and lender requirements.

What happens if the Clean Maritime Plan grant application is unsuccessful?

If a grant application is unsuccessful, the vessel can still be financed commercially. Lenders do not require grant funding as a condition of OSV or CTV finance. The main impact of an unsuccessful grant application is a higher equity requirement or commercial debt level. DBF can advise on timing - applying for grant funding before committing to commercial finance, and structuring the commercial facility to be flexible if grant funding does or does not materialise.

Clean Maritime Plan Grants for Zero-Emission CTVs UK