APPLICATIONS to help fund a further 503 alternatively-fuelled vehicles have been received by Powershift, the Government-funded Energy Saving Trust initiative to promote use of clean fuels. Last year £20 million in Government subsidies were awarded, via Powershift, to 38 UK fleets which had decided to trial alternatively-fuelled vehicles.

The deadline for applications for the second round of funding has just passed, and Powershift has this time received applications seeking funding for 503 alternatively fuelled vehicles. Last year Powershift received applications to support 404 vehicles, and granted 318.

Powershift says the level of applications for the latest round of funding - up by more than 30% on last time - shows that demand for cleaner vehicles is on the increase.

The majority of the latest applications for funding are from energy companies (158 vehicles), emergency services (146 vehicles), local authorities (103 vehicles) and distribution companies (51 vehicles). Powershift was launched a year ago with the promise of paying half of the cost of converting petrol or diesel vehicles to run on alternative fuels. The three-year programme has a £60 million budget.