The UK Government is providing £11 million of funding to boost research and development of technologies that reduce carbon emissions from driving.
The cash will be used by the Technology Strategy Board (TSB) for its Integrated Delivery Programme (IDP) competition, taking the total available funding to £15 million.
It is part of the Government’s commitment to ensure the UK is a world leader in the development of low carbon technologies.
Transport Minister Baroness Kramer said: “This new £11 million for research and development shows our support to UK companies leading the way to cleaner and greener transport technologies.
“By 2040 we expect virtually all new cars and vans to be using carbon-cutting technology and we want to see as much of this as possible designed and built here, in the UK, delivering economic as well as environmental benefits.”