Hi Matthew,
I have followed two electric Cappo builds online. Both removed the clutch and gearbox and tucked the motor into the tunnel. The first was a very narrow motor, and it actually fitted entirely into the tunnel, whereas the second was a greater diameter, and only tucked in the rear end. The first sacrificed his rear window stowage for battery space, which I thought a poor idea - what's the point of a Cappo if you can't tuck the rear window away? The second sacrificed the boot and the passenger seat for battery stowage - I didn't like that either.
Sad to say, both threads came to an end at the stage when the car was ready to start moving, owing to problems with the inverter control systems. The authors did not declare abandonment of the projects, but one assumes that was the case
A great pity, as I would like to do the same, but I would like the confidence given by a successful trail-blazer first
As for paying someone to do a change to a ULEZ compliant engine - it might be cheaper to pay the charge! Otherwise, store it until it's 40th birthday, when I think it will be exempt (under present rules).
Going back to electric drive, you might be able to graft the entire Citroen Ami drive into the Cappo without sacrificing space, and thereby retain a developed control system. Unfortunately, performance and range would be very limited.