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Funding Mechanisms

The Advanced Propulsion Centre can provide funding to support the development of low carbon propulsion systems from the ten year, £1 billion commitment by government and industry.

The funding is made available to the winners of bi-annual competitions for projects which are collaborative, business-led and typically where the eligible project costs are in the range of £5m to £40m. Consortia can apply for grant funding at different proportions of total cost depending on the organisation profile and classification of R&D, which is explained below.

However, consortia are encouraged to maximise the value for money of the projects; creating the greatest economic benefit per public pound of grant requested.

Project work packages that are classified as industrial research, can have a business partner attracting a maximum of 50% public funding for their project costs (60% for SMEs), or for work packages in experimental development, the business partner can attract a maximum of 25% funding (35% for a medium-sized company and 45% for small enterprises).

Please note: for projects which are predominantly industrial research focused, no single business partner can receive more than €20m Euros of grant and for projects which are predominantly experimental development, no single business partner can receive more than €15m Euros of grant. If you feel that your project may be close to reaching these limits, please contact the APC prior to submitting your application, in order to review your eligibility.

The administration of the competition process and distribution of the funding is managed by Innovate UK which provides an independent assessment of each application.

Eligibility for funding

To be eligible for APC competitions, projects must primarily fall under either the industrial research or experimental development category.

  • The amount of funding per project will depend upon the type of participant and the type of research being undertaken.
  • Eligible project costs should be between £5m and £40m.
  • Projects must have either a vehicle manufacturer and/or a tier 1 supplier in the consortium to ensure there is a clear route to market.
  • For projects focused on industrial research, the APC will fund up to a maximum of 60% of eligible project costs for SMEs involved in a project and a maximum of 50% of eligible costs for large companies. Research organisations will be able to claim up to 100% of their eligible costs.
  • For projects focused on experimental development, the APC will fund up to a maximum of 35% of eligible project costs for medium enterprises and a maximum of 45% for small enterprises involved in a project, and 25% of eligible costs for large companies. Research organisations are able to claim a maximum 100% of their eligible costs.
  • Projects are expected to last between 18 and 42 months.
  • Collaborations must be business-led and address the specific requirements of the competition as outlined in the scope of the competition brief.
  • Research organisation participation will be capped at 30% of the overall project costs.
  • Only UK-based companies and research organisations are eligible to apply. However, non-UK based companies and research organisations are also eligible to apply provided prior to the project starting they have set up a UK base from where the funded work will be carried out, and there is evidence that they intend to expand their R&D activity in the UK beyond the life of the specific project.

However, the APC reserves the right to apply a ‘portfolio’ approach to ensure the distribution of technology and funds across the technology areas defined in the competition brief, subject to meeting the required quality criteria.

The APC contact for questions relating to funding mechanisms is Jon Beasley who can be emailed via jon.beasley@apcuk.co.uk