Gas Networks Ireland is making more grants available to hauliers and transport companies to support the replacement of diesel-powered fleets with Compressed Natural Gas (CNG) vehicles.
The €2.9 million fund will go towards the purchase of 400 gas-powered powered trucks, buses and vans.
The grant will 20% of the difference between CNG and diesel-powered vehicles.
It is capped at €5,000 per vehicle, with a maximum €60,000 available to any one applicant.
Grants can be used towards the costs of vehicles registered from 2020.
CNG is made by compressing natural gas in special conditions of pressure and temperature allowing it to be used to fuel vehicles.
It produces fewer undesirable polluting gases than petrol, diesel and liquefied petroleum gas (LPG).
"Carbon neutral renewable gas made from food and agricultural waste, which was first introduced onto the gas network in 2019, is structurally identical to renewable gas and can be used in exactly the same way through the existing infrastructure, technology and appliances," Gas Networks Ireland's CNG Program Delivery Manager, Declan O'Sullivan, said.
"This means that as the volume of renewable gas on the network increases, vehicles fuelled by CNG will increasingly reduce their carbon footprint without needing to change a thing. Gas, natural today and renewable tomorrow, is the best alternative for the environment and the economy," he added.
Although only accounting for an estimated 4% of vehicles on Irish roads, Heavy Good Vehicles (HGV) and buses generate around a third of Ireland's road transport emissions.
Electricity is not considered a viable alternative to diesel in fuelling long-haul vehicles because of the limited battery ranges available so far.
A previous grant scheme saw Gas Networks Ireland supporting the prchase of 40 vehicles across 23 companies.
There are currently just two CNG refuelling stations available - at Circle K forecourts in Dublin Port and Cashel - with two more set to open this year in Dublin and Limerick.
Another is under construction in Cavan and a further eight are in planning and development.
Three private CNG stations are also in operation.
