Now open for bids, the scheme will be funded by the Office for Low Emission Vehicles (OLEV) through Innovate UK, and will be open to SMEs as well as large fleets. Part of the funds will also go towards new alternative fuel infrastructure such as electric vehicle charge points.

Transport Minister Andrew Jones said: “We are always looking at new ways to make the vehicles on our roads cleaner, and this funding will support the freight industry to embrace the latest technology.

“The UK’s low emission vehicle industry is a huge success story and a source of strength in our economy. Today’s announcement is further proof that the government is leading the way as global demand for these vehicles grows.”

Speaking at the Low Carbon Vehicle Partnership annual conference, Andrew Jones also announced a low carbon HGV technology accreditation scheme, which will provide fleet operators with an independent validation of how much fuel they could save by adopting the latest retrofit technologies onto their existing vehicles. Although currently aimed at HGVs primarily, LowCVP managing director Andy Eastlake has said it would work for vans in some operations.