The Swindon-based project will use household waste as a feedstock to produce low carbon methane, or bio-substitute natural gas (bio-SNG) that would fed into the gas network.

The method will play a key role in the decarbonisation of heating by unlocking previously untapped sources of low carbon gas and help reach the UK’s carbon reduction targets.

Additionally, National Grid has reported that decarbonised gas will significantly contribute in the total energy mix in the future.

National Grid energy demand manager Marcus Stewart said the funding will be a massive boost to the project, which aims to develop a cleaner way to heat our homes and businesses.

"We see this as a very important development in the decarbonisation of heat and are pleased that Ofgem share this view," added Stewart.

Advanced Plasma Power CEO Rolf Stein said green gas, produced using the company’s Gasplama technology is a viable, cost-efficient and green alternative to natural gas.

"Indeed, its expansion could help the UK in realising its ambitions of keeping the lights on, reducing carbon emissions, keepingenergy costs low for consumers and diverting waste from landfill – a truly complete solution," added Stein.