UK Maritime Innovations Supported by R&D Tax Relief

The UK’s maritime sector is undergoing a transformative shift, driven by tightening emissions rules and net zero targets. Recent support from the Ofgem Strategic Innovation Fund (SIF), which invested £12 million in energy innovation, underscores this momentum. Among the 15 funded projects are clean propulsion systems, zero-emission tech, and decarbonised ports, critical steps in aligning the maritime and energy sectors with national sustainability goals (UKRI, 2025).

This kind of programme highlights how the maritime industry is pushing the boundaries of what’s technically possible, whether through propulsion innovation, onboard emissions control, digital optimisation, or alternative fuel integration. These projects span feasibility studies, prototype development, and full-scale demonstrators, reflecting the sector’s appetite for bold experimentation and practical testing. 
What’s more, much of this activity aligns with the requirements for R&D tax relief, offering a valuable financial incentive alongside grant funding. For companies involved, it’s not just about innovation, it’s about doing it sustainably, strategically, and with the right funding mix in place.

The drive for net zero shipping is now firmly policy backed, time bound and evolving fast.

By mid 2024, global orders for alternative fuel ships rose by 50%, with 22 ammonia fuelled vessels on order. In 2025, the first ammonia marine engines are expected to be delivered (Lloyd's Register, 2025). Lloyd’s Register and Hyundai have already signed approvals in principle for ammonia dual fuel container ship designs (Lloyd's Register, 2024). At the same time, UK trials for wind assisted propulsion, notably the ‘FastRig’ wingsail, have confirmed strong fuel saving performance and commercial readiness (Walton, 2025).

Such initiatives involve experimental technologies, systems integration and physical testing, all activities likely to meet HMRC’s definition of qualifying R&D for tax purposes.

Since April 2024, the UK’s merged R&D tax relief scheme has provided substantial support to businesses developing new or improved technologies, systems or processes.

The updated framework offers:

• A 20% R&D Expenditure Credit (RDEC), approximately a 16.2% net benefit post-tax.
• A 27% credit for R&D intensive SMEs spending over 30% of total costs on qualifying R&D.
• 100% first-year capital allowances for qualifying plant, machinery and building improvements.
• UK focused relief, with limited overseas exemptions.

These incentives apply to work on low emission fuels, vessel modifications, clean port infrastructure and digital shipping technologies.

Financial pressure across the sector is increasing. From 2026, the UK Emissions Trading Scheme (UK ETS) will include domestic shipping, forcing companies to either reduce emissions or buy allowances. Meanwhile, public sustainability grants remain competitive and limited, with no guarantee of success. R&D tax relief, by contrast, is a statutory incentive that rewards technical problem solving. For a maritime innovator seeking reliable financial return, R&D tax relief offers a higher likelihood of success, especially if you’re already investing in decarbonisation, vessel design, or marine tech development. Grants can be powerful, but they’re best viewed as strategic accelerators, not guaranteed funding.

HMRC is now tightening compliance requirements, including stronger documentation standards and Advance Assurance options for complex claims. But these measures enhance certainty for genuine innovators.

One UK shipping firm experimenting with ammonia propulsion successfully submitted an R&D claim by carefully documenting development phases, testing, and technical challenges, covering staff time, consultant input, software, and hardware costs.

The tax relief enabled them to launch a second project: an AI-powered emissions optimiser that plans voyages based on real-time weather and fuel usage.

The UK maritime sector is actively building sustainability through new fuels, smarter ship design, clean port tech and digital logistics tools. R&D tax relief is a vital enabler, rewarding the technical work already underway and helping companies to innovate further. Whether your organisation is large or small, if you are solving complex technical problems with uncertain outcomes, now is the time to explore how R&D tax relief can support your innovation roadmap, whether you're trialling new fuels, digital solutions, or green infrastructure.