The move means that businesses will be able to gain access to a 20% discount off the upfront cost worth up to £8,000.
In addition to lower running costs, the scheme also allows businesses that purchase the vans to take advantage of a range of tax incentives, including zero vehicle excise duty and no congestion charges in London.
Transport Minister Baroness Kramer said: “Ultra-low emission vans are cheaper to run and with a variety of models now eligible for the grant, there has never been a better time for business to take advantage and start saving money. The government is supporting UK companies that are leading the way on cleaner and greener transport.”
The funding extension for vans was announced alongside an additional £4m to support the early deployment of publically accessible gas refuelling points for heavy goods vehicles (HGVs) across the UK.
The investment would give businesses who use gas-powered trucks the flexibility to refuel en route, rather than having to specifically plan journeys between refuelling stations.
The Office for Low Emission Vehicles will work with Innovate UK and the freight sector to identify areas where demand for infrastructure is highest. Gas retailers and other interested parties will be encouraged to bid for a share of the funding. The winners will be announced next year.
