Submissions open for Freight Innovation Fund Accelerator Program 2025 (UK)

Challenges

• Challenge 1: Planet-focused freight
  • Innovations and interventions targeting decarbonisation in the inter-modal freight sector
    • Net Zero and decarbonisation for a more sustainable society is still the number one priority for the industry. How can they design a model to transfer freight without using fossil fuels and without emissions?
    • If partners and operators collaborate together to link technologies, innovations as well as sensors and carbon reporting, they could achieve this goal faster. This would then involve new fossil fuel free technologies, data sharing platforms, the creation of new hubs spaces for EVs and green energy and more.
    • In addition to that, they need to make sure the industry is future-proofed in terms of new upcoming trends as well as climate resilience. Setting a new no-carbon model for the industry is fundamental to set a new precedent and inspire operators and logistics locations around the UK to follow the example and prioritise planet-centred design.
• Challenge 2: Circular design
  • Solutions and services adopting circular design principles to allow the freight sector to reuse, retrofit, recycle and upcycle vehicles, machines, technologies and waste.
    • Circular design principles are key to reduce waste and emissions in the sector. Extending the lifespan of existing vehicles while repurposing materials can drive sustainability without compromising efficiency.
    • How can they bring circularity to vehicles, materials, supply chains and logistics in the sector, while keeping costs down? The integration of battery-electric, hydrogen, and hybrid conversion kits, alongside lightweight, recycled materials will lead to a more sustainable supply chain for the freight sector.
    • This would mean scaling up retrofitting hubs, creating incentives for fleet up – grades, and developing new supply chains for recycled components. By linking inno – vation, regulation, and circular economy principles, they could reduce waste while accelerating decarbonisation. The success of this approach here would inspire wider adoption of retrofitting and resource efficiency across the industry.
• Challenge 3: Freight optimisation & efficiency
  • Next generation of technologies to make inter-modal logistics and freight less wasteful, more efficient and collaborative
    • AI and data-driven optimisation are crucial for making freight more efficient, especially with 30% of journeys currently running empty. Smarter logistics can cut waste, reduce emissions, and improve profitability across the sector.
    • How can they use AI and data to optimise freight journeys and eliminate current inefficiencies? The integration of real-time tracking, predictive analytics, and automated load-matching will lead to minimum empty runs and maximise capacity use.
    • This would mean deploying digital freight platforms, enhancing data-sharing between stakeholders, and using AI to predict demand and optimise routing.
    • By linking technology, logistics, and policy support, they could create a smarter, leaner freight network. Such an approach could redefine industry standards, proving that AI-driven logistics can boost efficiency while cutting costs and emissions.
• Challenge 4: People in freight
  • Services and products that shape healthy, diverse, inclusive and safe workplaces and communities
    • The wellbeing, health, safety and upskilling of the workforce are essential to promote less polluted, safer, diverse and inclusive working environments. A few of the challenges that people working in freight are facing relate to training and new learning as well as health and safety.
    • The ageing workforce is facing new challenges when it comes to learn how to use and dispatch new net zero vehicles and technologies. How can they train them using technologies such as VR sets to boost their learning while keeping emissions down? How can they upskill or reskill people to keep them up to date with new trends and technologies without aggravating traffic?
    • At the same time, the working environment is facing new threats such as cyber attacks, safety hazards, pollution and more. How do they minimise this risks in order to shape a better and healthier workplace for both the people and the planet?

Benefits

• Following the first stage where up to 15 SMEs will be selected for the programme and receive £20,000 to develop a detailed trial proposal, up to 10 will then be selected by the DfT and Connected Places Catapult to receive further up to £130,000 to deliver their trial via a pre-commercial Pilot & Trial contract.
• To foster a collaborative and mutually beneficial partnership, SMEs are expected to contribute 30% of the total project cost as matching funds.
• As part of the programme, SMEs will also benefit from trial and business support tailored to their needs. This will include but is not limited to trial design training, monitoring and evaluation, investment readiness, pitch coaching, marketing support, and business modelling.
• All applicants will also be able to join the Freight Innovation Cluster, a community for stakeholders operating in the freight industry.

Eligibility Criteria

• At the point of application:
  • You must be a Small and Medium-sized Enterprise (SME).
  • You must have a registered UK company address.
  • You must have operations in the UK.
  • You must have an innovative solution at Technology Readiness Level (TRL) 5+.
  • You must be willing to test in a real-world environment.
  • You must be able to address one of the accelerator challenge statements with your solution.
  • You must be VAT registered.

For more information, visit Innovate UK Business Connect.