![LOGOTYPE [GREEN_DARK GREEN].png](https://static.wixstatic.com/media/d6e0b6_7c15be730f2c42d4ad22da5f1e69fa35~mv2.png/v1/fill/w_877,h_198,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/LOGOTYPE%20%5BGREEN_DARK%20GREEN%5D.png)
UK Green Transport Innovators Are Powering the Future
- Azam Saghir
- Aug 14
- 6 min read
Updated: Aug 16
UK green transport startups face funding, scaling and industry adoption challenges. Learn how innovative companies overcome hurdles to drive decarbonisation.
UK green transport startups are developing breakthrough technologies with the potential to dramatically reduce emissions. But they face common hurdles around scaling novel solutions, securing funding for capital-intensive R&D, and convincing traditional industries to adopt unfamiliar technologies. Success hinges on proving real-world performance while building the credibility needed to attract both customers and investors.
The sector stands at a critical juncture. With transport accounting for a quarter of global CO2 emissions and mounting regulatory pressure across aviation, shipping, road haulage and heavy industry, innovative startups are racing to develop solutions that can move the needle on decarbonisation. Yet, for all their technological promise, these companies face remarkably similar challenges.
Sustainable Times will recognise their success in overcoming these barriers, alongside other sustainability-focused startups, in the 2025 RISE Awards in November.
The innovation imperative
Notwithstanding environmental considerations, traditional transport technologies have reached their performance ceiling. Diesel engines, the backbone of heavy-duty power for decades, operate at just 30-35% efficiency — a figure that has remained relatively unchanged despite continuous refinement. This limitation makes adopting alternative fuels, such as hydrogen or ammonia, prohibitively expensive, creating a Catch-22 that has stalled progress across multiple sectors.
"The diesel engine as a technology has fundamentally plateaued," explains George Hunter, Head of Sales at Carnot Engines, which has developed next-generation engines capable of operating at over 70% efficiency. "If you double efficiency, you halve fuel consumption. For heavy-duty markets where 90% of the total cost of ownership is fuel, reducing the fuel bill by half is massive."
This engineering breakthrough exemplifies the kind of step-change innovation needed to crack traditionally intractable problems. Similarly, commercial shipping — responsible for 3% of global greenhouse gas emissions — has historically relied on wind propulsion but has abandoned it as fossil fuels have become cheaper. Now, companies like GT Wings are reintroducing wind propulsion with modern engineering, developing compact systems that can reduce fuel consumption while complying with increasingly stringent EU regulations.
Meanwhile, sectors that are particularly hard to electrify — such as long-haul aviation, cement production, and steel manufacturing — require entirely new approaches. RIVAN is tackling this challenge by manufacturing synthetic fuels from captured atmospheric carbon and renewable electricity, targeting industries where "you fundamentally need a molecular input" that batteries cannot provide.
The scaling trilemma
These innovations share three interconnected scaling challenges that characterise the broader green transport startup landscape: proving technology in real-world conditions, securing sufficient capital for manufacturing scale-up, and convincing mature and conservative industries to adopt emerging solutions.
Real-world validation
Laboratory performance rarely translates directly to commercial environments. Construction sites, shipping routes, and industrial facilities present harsh conditions that can quickly expose weaknesses in nascent technologies. "It's one thing to hit efficiency targets in our test sites, but our customers work in very challenging environments," notes Hunter. "When you go to a construction site, it's not sterile or easy. Those machines are worked really hard in dusty, messy, probably wet conditions."
This reality drives the critical importance of field trials and demonstration projects. GT Wings invested heavily in installing its first full-size 20-metre wing on an operational vessel specifically to generate real-world performance data. "End- users and investors really want to see real-world data from the wing on the water in a real operating setting," explains Technical Sales Lead Jonny Gambell. "We've been quite fortunate and able to get quite a lot of funding to very quickly get a wing on the water."
Capital-intensity challenge
Green transport innovations typically require substantial upfront capital for manufacturing facilities, specialised equipment, and inventory. Unlike software startups that can scale with relatively modest investment, hardware companies must "bend metal" and build factories before generating meaningful revenue.
"Everything we're doing is very capital-intensive," acknowledges Harvey Hodd, CEO of RIVAN. "We're building factories, we're welding; we're doing everything." This capital requirement becomes particularly acute when companies opt for vertical integration strategies to control costs and quality — a common approach among successful green transportation startups.
However, smart companies are finding ways to align customer needs with funding requirements. "A lot of our R&D will be funded by our customers, which is great," Hodd explains. "You can't often say that about new technologies; they often have to go and raise billions to carry on."
Industry conservatism
Perhaps the biggest challenge lies in convincing established industries to adopt technologies from young companies. Shipping, construction, and heavy industry have operated profitably for decades using established solutions, embedding resistance to change.
"We're a young company going up against some absolute behemoths in the industry that have been around for hundreds of years," says RIVAN’s Hodd. "Everything points to us not being able to do what we're saying we can do." This scepticism extends beyond just technological capability to questions about startup longevity, supply chain reliability, and ongoing support.
The solution increasingly lies in demonstrating clear economic benefits rather than leading with environmental arguments. "For sustainability, we measure impact in CO2 equivalent tonnes of emissions saved," explains Hunter at Carnot. "But for economics, our value proposition to customers is straightforward. Our engines cost about twice a diesel engine in capex, but fuel consumption is half. For most applications, just on fuel savings, we'll pay off the whole engine cost in one year."
Government support as catalyst
UK government funding has proven crucial for early-stage technology development, particularly through Innovate UK grants that help de-risk private investment. GT Wings raised over £5 million in government grants, allowing the firm to progress from concept to operational demonstration within 12 months — a timeline that would have been impossible with private funding alone.
"The UK has one of the best early-stage systems for supporting new ideas and solid technology development," observes Hunter. "We use grant funding to amplify our equity investments. When we spend £1,000, we get £700 back from grants, allowing us to reinvest in the next R&D phase."
This support model helps bridge the notorious "valley of death" between laboratory proof-of-concept and commercial viability, where many promising technologies fail due to insufficient funding for scale-up activities.
Building credibility and visibility
Success requires more than just superior technology — it demands credibility, visibility, and validation from respected third parties. This is where industry recognition - including via awards submissions - becomes particularly valuable for emerging companies seeking to accelerate market adoption.
"Any stamp of approval or credibility saying that we actually can do that and that it does make sense is very useful," explains Hodd. "The more we can reduce the risk for large incumbents to use us, work with us and fund us, the better it is for the world."
For Carnot Engines, recognition would help address a specific business challenge: "We're fundamentally an engineering company. Where we're less strong is marketing ourselves, getting our name out there, and finding new customers in new places." Hunter sees platforms like the RISE Awards as providing "visibility to accelerate our decarbonisation pathway”.
The road ahead
UK green transport startups are developing technologies with genuine potential to transform some of the most carbon-intensive sectors of the economy. Their success depends not only on technological excellence but also on navigating the complex interplay between demonstrating real-world performance, securing adequate funding, and building the credibility needed to convince traditional industries to adopt change.
The companies making progress share common characteristics: they lead with economic benefits rather than environmental arguments, they invest heavily in real-world demonstration projects, and they leverage government support to amplify private investment. Most importantly, they understand that in mature industries, credibility and visibility can be as valuable as technological superiority.
As regulatory pressure intensifies and the economic case for green transport strengthens, the startups that successfully navigate these scaling challenges will find themselves at the forefront of a fundamental transformation in how the world moves goods and generates power.
________________________________________________________
For green transport companies looking to accelerate their growth, the RISE Awards offer opportunities to open doors to funding partnerships, raise team profiles, and connect with the investor community actively seeking sustainable solutions. The awards ceremony takes place on 6th November 2025 at the De Vere Grand Connaught Rooms in London.
About the Sustainable Times RISE Awards
The RISE Awards recognise and celebrate the UK's most promising businesses driving impactful change in Environmental, Social, and Governance (ESG) and sustainability-focused categories. The awards provide a platform for startups and scale-ups to showcase their innovations, connect with investors and industry pioneers, and gain recognition as leaders in sustainable innovation.
To learn more about entering categories such as Green Transport, Clean Tech, or Renewable Energy, visit the RISE Awards platform. Registration is £175 + VAT, with entries closing on 31st August 2025.
Comments