The money will be used to underpin significant private sector investment in one or more demonstration-scale advanced biofuel plants in order to drive the development of the UK’s biofuel industry.
Advanced biofuels are made from materials, for example municipal waste and forestry residues, using complex processing techniques. They can produce a wide range of transport fuels including replacements for those used in road transport and aviation.
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Transport Minister Norman Baker said: "I am delighted that we are able to support these innovative technologies and believe that they will bring significant benefits to the UK. There are real opportunities for the UK to take a technological lead, driving growth, creating highly skilled jobs and seeing energy, security and environmental benefits.
"It is clear that in the long term advanced biofuels will be important in areas that we cannot otherwise decarbonise, such as aviation. This announcement will help put the UK in a good position to meet this demand."
(CD/MH)
