Departmental Schemes

Dáil Éireann Debate, Tuesday - 20 June 2023

Tuesday, 20 June 2023

Questions (220, 223)

Alan Dillon

Question:

220. Deputy Alan Dillon asked the Minister for Transport to provide an update on the alternatively-fuelled heavy-duty vehicle purchase grant scheme introduced in March 2021; the current status of the scheme; how many applications have been received; how many have been approved; the cost of the scheme to date; the effectiveness of the scheme in promoting the adoption of alternatively-fuelled large vans, trucks, buses and coaches; and if he will make a statement on the matter. [29503/23]

Alan Dillon

Question:

223. Deputy Alan Dillon asked the Minister for Transport given the positive response to the alternatively fuelled heavy-duty vehicle purchase grant scheme, the details of the additional funding allocations for the scheme in 2023; the way these funds will be utilised to further support the purchase of alternatively-fuelled heavy-duty vehicles; the outcomes that are expected from this increased investment; and if he will make a statement on the matter. [29507/23]

Written answers

Minister for Transport

I propose to take Questions Nos. 220 and 223 together.

Providing a sustainable, low-carbon transport system is a key priority of the Irish Government. The Programme for Government commits to 7% average annual emissions reduction to 2030; ultimately, the goal is for a zero-emission mobility system by 2050. Decarbonisation of heavy-duty vehicles will be key to achieving this objective in the transport sector.

To promote the decarbonisation of the heavy-duty sector, my Department launched the Alternatively-Fuelled Heavy-Duty Vehicle (AFHDV) Purchase Grant Scheme in March 2021. The Scheme, which is administered by TII, is intended to help bridge some of the difference in purchase price between conventional heavy-duty vehicles (HDVs) and those powered by alternatively-fuelled power-trains. To accord with EU State Aid rules, grant levels under the Scheme are calculated as a percentage of the difference in price between a conventionally-fuelled diesel HDV and its alternatively-fuelled equivalent. Maximum grant levels for eligible vehicles depend on the size of the enterprise applying for the grant.

The success of the AFHDV scheme was heavily impacted by the Covid-19 pandemic and global supply chain issues which resulted in significant delays in the grant applicants receiving their vehicles and drawing down their AFHDV grants. Transport Infrastructure Ireland is now processing 2021 and 2022 grant application drawdowns.

The AFHDV purchase grant scheme is open for applications in 2023 with a budget of €5million. The scheme has been gaining momentum recently with new applications and fund drawdowns.

To date the scheme has processed 49 applications.

Year	Grant Paid	Open/In Progress Application	Withdrawn applications
2021	8	6	6
2022	6	12	4
2023	1	6	0
Total	15	24	10

Since the AFHDV scheme was launched on 15th March 2021 grants have been approved for 44 applications and a corresponding 180 vehicles.

Scheme Figures – Costs, committed grant funding and grants paid or in payment process.

Year	Operational Cost	Funding Committed	Grant Paid
2021	117,305	€1,248,000	€680,045
2022	86,408	€2,359,192	€795,432
2023	-	€873,360	€122,002
Total	203,713	€4,480,552	€1,597,479