Alternatively Fuelled Heavy Duty Vehicle Purchase Grant Scheme

Important Customer Notice

The AFHDV Purchase Grant Scheme has been a great success and promoted the decarbonisation of the freight sector. After the wonderful response from customers, we would like to announce that funds for the 2021 calendar year have been exhausted. 

There is still an opportunity to express your interest in the scheme by submitting an application that will be placed on a waiting list. In the event that more funding becomes available, new qualifying applications on the waiting list will be contacted directly.

 

Ireland has committed to transitioning to a low carbon economy by 2050 and the transport sector has a significant role to play. To date, in Ireland, the transport sector is heavily dependent on imported oil. Reducing this reliance and switching to alternative fuels and technologies will be essential to decarbonise the sector. Major changes to our conventional fuel choices will be needed to achieve this goal.

To promote the decarbonisation of the freight sector and to encourage companies towards this path, the Department of Transport has appointed TII to administer the Alternatively-Fuelled Heavy Duty Vehicle Purchase Grant Scheme (Scheme).

The Scheme is intended to assist the purchase of heavy duty vehicles (HDVs) that are alternatively-fuelled and exceed applicable European Union (EU) environmental standards that would not otherwise have been purchased without the Scheme’s support. 

If you have already ordered, purchased or registered an alternatively fuelled vehicle, it is NOT eligible for support under the Scheme.

Applications to the scheme will be received from 15th March 2021.

 

What is the Alternatively Fuelled Heavy Duty Vehicle Purchase Grant Scheme?

The Scheme awards grants to assist companies and enterprises who wish to buy new alternatively-fuelled heavy duty vehicles supported by the Scheme (AFHDVs) as opposed to the diesel equivalent. Grant amounts are calculated as a percentage of the difference in price between an AFHDV and its diesel equivalent. 

Grant levels awarded to applicants depend on:

  1. the power-train or fuel-type of the vehicle that the applicant intends to buy;

  2. the size of the enterprise or company applying for the grant; and

  3. whether applicants have already received grants under the Scheme. 

 

What fuel types does the Scheme support?

The Scheme supports a specified number of AFHDVs with the following power trains and as described in more detail in the Scheme Rules. The supported fuel-types are:

  • Compressed Natural Gas;

  • Liquified Natural Gas;

  • Battery Electric Vehicles;

  • Plug-in Hybrid Electric Vehicles; and

  • Fuel Cell Electric Vehicles.

The vehicle categories and weight ranges listed below and in the worked examples document are eligible for potential grant support under the Scheme. Future iterations of the Scheme may include more vehicle types and categories as more alternatively-fuelled heavy duty vehicles enter the market.

 

How do I find out the size of my business or undertaking?

Undertaking size is determined by definitions developed by the EU and based on staff head count and turnover. 

According to EU state aid rules, ‘small’ enterprises are eligible for higher levels of aid than ‘medium’ or ‘large’ enterprises. More information on determining the size of your enterprise can be found in the Scheme Rules, link here, and the latest edition of the EU’s User guide to the SME definition.

The following table summarises how the sizes of undertakings are defined under the Scheme and how this relates to the total maximum aid intensity available to eligible applicants. It also shows the maximum possible funding intensity per vehicle depending on what size an applicant’s undertaking is. It is important to note that the total maximum aid intensity per undertaking (including affiliates) is €500,000. 
 


Table 1. Size of undertaking and percentage of price differential

Size of UndertakingSmallMediumLarge
Staff head-count; turnover/balance sheet total Fewer than 50 staff; ≤ € 10 m/≤ € 10 m Fewer than 250 staff; ≤ € 50 m/≤ € 43 m More than250 staff; > € 50 m/> € 43 m
Maximum aid intensity per vehicle per size of undertaking 60% of price differential 50% of price differential 40% of price differential

What is the price differential?

The price differential is the difference between the purchase price (exclusive of VAT and any other discounts) of the AFHDV and the purchase price (ex VAT and discounts) of its diesel equivalent.

 

Calculating price differentials and grant levels

 

  • Compressed Natural Gas (CNG) HDVs

For eligible CNG HDVs, the price differentials and maximum grant levels are as set out in the below Table 2.

 

Table 2. CNG HDVs

Vehicle typeWeight (GVW) in metric tonnes

Total CNG price differential per vehicle type

Maximum Grant levels per eligible CNG vehicle

(% depending on size of enterprise)

     

40% of differential

('Large enterprise')

50% of differential

('Medium enterprise')

60% of differential

('Small enterprise')

Vans 3.5t to 4.5t €5,700 €2,280 €2,850 €3,420
Trucks 16t to 46t €25,000 €10,000 €12,500 €15,000

Refuse trucks (rear end loaders or ‘bin lorries’)

Completed vehicle (including c. 26t chassis & bodywork)

€27,000 €10,800 €13,500 €16,200

Where applicants are seeking to purchase a CNG HDV over 3.5 tonnes GVW that does not fall within the categories set out in Table 2 (e.g. CNG-powered buses, coaches), applications will be reviewed on a case by case basis. 

If deemed eligible for support, for the purposes of determining grant support levels, the price differential for the relevant CNG HDV will be calculated in a similar way to the calculation of price differentials for eligible battery, plug-in hybrid and fuel cell electric HDVs with reference to the baseline diesel prices and categories outlined in Table 4 below. 

If the CNG HDV type for which you are seeking support is not included in either Table 2 or Table 4, it will not be possible to offer it support under this iteration of the Scheme. Future iterations of the Scheme may include more vehicle types and weights as more alternatively-fuelled heavy duty vehicles enter the market.

 

  • Liquified Natural Gas (LNG) HDVs

For eligible LNG HDVs, the price differentials and maximum grant levels are as set out in Table 3.

 

Table 3. LNG trucks

VehicleWeight (GVW) in metric tonnesTotal LNG price differential per vehicle type

Maximum Grant Levels per eligible LNG vehicle

(% depending on size of enterprise)

     

40% of differential

('Large' enterprise)

50% of differential

('Medium' enterprise)

60% of differential

('Small' enterprise)

Trucks 26t to 46t €50,000 €20,000 €25,000 €30,000

 

  • Battery Electric Vehicles (BEV), Plug-in Hybrid Electric Vehicles (PHEVs) and Fuel Cell Electric Vehicles (PHEVs)

For BEVs, PHEVs and FCEVS within the weight ranges set out below, the price differential is the difference between the baseline diesel price listed in Table 4 and the purchase price (ex VAT and discounts) on the vehicle purchase invoice to be supplied by the applicant as part of the application process.

This calculation can be summarised as:

Price differential = (AFHDV purchase price ) - (baseline cost of equivalent diesel HDV) 

where the AFHDV purchase price and the baseline cost of the equivalent diesel HDV do not include VAT or any added discounts.

 

Table 4. Baseline diesel purchase prices (ex VAT) and vehicle categories for calculation of BEV, PHEV, FCEV grants 

EU CategoryVehicle typeWeight range (GVW)Baseline diesel purchase price ex VAT
N2 Van/light truck Over 3.5t to c. 5t €30,000
N2 Van/light truck c. 5.5t to 8.5t €39,000
N2 and N3 Truck Over 8.5t to 16t €59,000
N3 Truck Over 16t to 19t €85,000
N3 Truck Over 19t to 46t €106,000
N3 Refuse collection truck (refuse rear end loader or ‘bin lorry’) (Finished vehicle consisting of a c. 26t+ chassis plus bodywork) €210,000
M2 Mini bus c. 11-17 seats (Approx. indicative weight range of 3.5 to c. 5t) €41,000
M3 Midi bus c. 21-32 seats (Approx. indicative weight range of c. 8t to 10t) €180,000
M3 Single deck bus c. 40+ seats (Approx. indicative weight range of c. 11t to 14t) €175,000
M3 Single deck coach c. 40+ seats (Approx. indicative weight range of c. 13.5t and over) €290,000
M3 Double deck coach c.75+ seats Low floor with ramp access €430,000
M3 Double deck bus (Euro VI diesel) c 65+ seats €255,000

More information on the AFHDV Grant Scheme

More details on the Scheme Rules can be found here.
Worked examples of Grant Amount calculations can be found here.
Scheme Data Protection Notice can be found here.

 

How to apply for the Grant

To begin the application process, the applicant shall complete the Application Form and submit it by email to: afhdvgrant@emovis.ie

The full high-level application process is set out in the following diagram. Indicative timeframes for the different steps in the process can be found in the Grant Offer Letter template which includes the Scheme's terms and conditions. 

 

Contact

For further details of the Scheme please contact Emovis, the Scheme Operator, at: