The UK Department for Transport (DfT) has awarded £25m to fund to three companies for the production of biofuel from waste products.
The companies, which have been selected as part of the Advanced Biofuels competition, include Celtic Renewables; Advanced Plasma Consortium comprising Advanced Plasma Power, Progressive Energy, National Grid and CNG Services; and Nova Pangaea Technologies.
Of the total funding, Celtic Renewables and the consortium led by Advanced Plasma Power will each receive £11m, while the remainder £3 will be given to Nova Pangaea.
Renewable Energy Association CEO Dr Nina Skorupska, said: "We are delighted that this consortium of our members has secured £11 million of funding for their innovative project to turn waste into renewable gas for transport.
"The transport sector has been falling badly behind in reducing carbon emissions and we hope that this competition will give a boost to the UK’s efforts to deliver home-produced cleaner and greener fuel."
Celtic Renewables will use the funding amount to convert Scotch whisky by-products into biofuel, with plans to open a further 3 commercial plants across Scotland in the future.
Advanced Plasma Power will develop biofuels from ordinary household waste, while Nova Pangaea will make biofuels from forestry waste.
The biofuels produced will be used to as transport fuel.
The investment in biofuel technology is expected to create over 5,000 new jobs by 2030.
Transport minister Andrew Jones said: "Biofuels have an important role to play in keeping Britain moving forward in a sustainable and environmentally-friendly way.
"Advanced biofuels have the potential to save at least 60% of the greenhouse gas emissions from the equivalent fossil fuel. The 3 successful bids show how the government is investing in transport and making better, clean journeys."
Image: The biofuels produced will be used to as transport fuel. Photo: courtesy of GOV.UK.