The European Bank for Reconstruction and Development (EBRD) has outlined its plans to seek new methods for the production of bio-fuels using agricultural wastes and residues.

The lending agency is advocating a greater use of agricultural residues for bio-fuel generation resulting in the improvement of the agribusiness sector while allaying food security concerns.

EBRD said that the new bio-fuel technologies do not compete with food crops and agriculture land use although they can deliver energy resources in a more environmentally sustainable manner.

"Next-generation biofuels produced from waste and agricultural residues can help save energy and improve the sustainability of companies operating in the agribusiness sector," said EBRD in a statement.

EBRD agribusiness team director Gilles Mettetal further added, "Turning waste like straw or manure into biofuels or biogas can help agribusiness companies become less dependent on expensive external energy sources and as a result make them more sustainable and competitive."

The lending agency has also concluded collaborations with agri-business companies such as Agria Group, Bloomberg New Energy Finance and Beta Renewables as per its bio-fuel technology program.

In 2012 alone, EBRD reportedly invested €900m in agribusiness companies via debt and equity.