Cable unveils £16.5m low carbon vehicle fund

Up to £16.5m of government funding is to be made available for projects aiming to slash vehicles emissions, business secretary Vince Cable announced yesterday.

A competition for the funds run by the Technology Strategy Board, the Office of Low Emission Vehicles (OLEV), and the Engineering and Physical Sciences Research Council (EPSRC) is to open in February next year.

The three organisations are seeking proposals for highly innovative, industry-led projects from companies in or outside the automotive sector, in one of four areas: internal combustion engines, energy storage and energy management, electric machines and power electronics, and lightweight vehicle and powertrain structures.

The aim is to create new low carbon solutions that can not only achieve significant cuts in CO2 from road transport, but also position the UK at the global forefront of the emerging green auto industry, creating jobs and growth.

Currently, no major manufacturers produce electric or hybrid cars in the UK, although Nissan's bellwether LEAF electric car will begin rolling off production lines at its Sunderland plant from next year.

"Close collaboration between industry and government, through the UK Automotive Council, will help ensure the projects this initiative funds will address important technology challenges and help to strengthen UK capability in low carbon," Cable said.

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