The cash injection offers a 65% increase in Powershift's £2 million annual grant, and ends uncertainty over funding for the programme, after the Government missed its March deadline for renewing its support. So far, the Powershift programme, which offers grants of up to 75% of the cost of converting a vehicle to alternative fuels, has contributed to 1,210 vehicles.
Jonathan Murray, manager of the Powershift programme, said the extra funding would deliver a massive boost to run on alternative fuels and could see the number of vehicles funded double. He said: 'Our funding has already contributed to a reduction of 39,000 tonnes in CO2 emissions, the equivalent of taking 18,000 cars off the road for one year. The extra money allows us to develop our market and look at areas of concern, such as residual values and demand from used car buyers.'