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Transport Minister Baroness Kramer announces extension of electric van grant plus £4 million to help refuel gas-powered trucks.

British businesses will be able to continue saving money and cutting their carbon footprint as the government today (25 March 2015) announced that the ultra-low emission plug-in van grant will be extended.

Transport Minister Baroness Kramer confirmed that the grant, which launched in 2012 and provides purchasers with a 20% discount off the upfront cost worth up to £8,000, would be extended to meet continued demand.

In addition to lower running costs, the scheme also allows businesses that purchase the vans to take advantage of a range of tax incentives, including zero vehicle excise duty and no congestion charges in London.

Transport Minister Baroness Kramer said:

Ultra-low emission vans are cheaper to run and with a variety of models now eligible for the grant, there has never been a better time for business to take advantage and start saving money. The government is supporting UK companies that are leading the way on cleaner and greener transport.

Since 2012 the initiative has supported over 1,250 vans, with vehicle running costs potentially as low as 2 pence per mile.

Gnewt Cargo is one company which has benefitted from the plug-in van grant and it now has the largest 100% commercial electric fleet in the UK.

Co-founder and CEO Sam Clarke, said:

As a business we have grown significantly over the last few years in London and are expanding nationally in 2015. Our fleet of over 100 plug-in vans are economical to run and also help improve air quality in the capital.

The plug-in van grant is a great way to encourage other fleets to take this same step. We are therefore delighted to hear that support for electric commercial fleets is set to continue.

Today’s funding extension for vans was announced alongside an additional £4 million to support the early deployment of publically accessible gas refuelling points for heavy goods vehicles (HGVs) across the UK.

The investment would give businesses who use gas-powered trucks the flexibility to refuel en route, rather than having to specifically plan journeys between refuelling stations.

Baroness Kramer added:

This investment will make it even easier for British businesses to increase their uptake of cleaner gas powered HGVs. It will not just improve local air quality, but benefit those who develop and manufacture this technology and reinforces our commitment to the UK automotive industry.

The government’s Office for Low Emission Vehicles will work with Innovate UK and the freight sector to identify areas where demand for infrastructure is highest. Gas retailers and other interested parties will be encouraged to bid for a share of the funding. The winners will be announced next year.

More information about the range of plug-in vans and other electric vehicles currently on the market is available at GoUltraLow.com.