UK will provide €12.5m towards the European Union backed Bio-Energy Sustaining the Future (BESTF) joint initiative, featuring seven other European Union countries, to develop innovative bio-energy projects in the region.

The Department of Energy and Climate Change will provide €7.4m to the initiative over the next 2-3 years while the Technology Strategy Board and Biotechnology and Biological Sciences Research Council will provide an additional €5.1m support.

Commenting on the initiative UK Energy minister John Hayes remarked that bio-energy forms a key part of the country’s future energy mix.

"This scheme will help businesses develop a range of different innovative projects by combining public and private sector investment to make the most of this exciting technology," added Hayes.

The initiative is worth a combined €47m and features Finland, Sweden, Germany, Spain, Denmark, Switzerland and Portugal as other member participants.

Objective of the initiative is to stimulate further investments of €100m in bio-energy innovation in the said countries.

Bio-energy is a versatile form of low carbon and renewable generation, which can be used to generate heat, electricity, transport fuel and can also provide a continuous and stable flow of energy.