Scotch whisky leftovers could be used to fuel our cars following government grant

A Scottish company which turns leftovers from whisky production into biofuel has been awarded an £11 million government grant in a bid to develop greener fuel technology and boost local industry.

Edinburgh-based Celtic Renewables takes by-products from the Scottish whisky industry such as barley and pot ale. By applying a different fermentation process, the company says it can produce bio-butanol – which can be used as a direct replacement for petrol.

A further £11 million of funding is being given to Advanced Plasma Power, in Swindon, to help develop biofuels from ordinary household waste – while £3 million is being awarded to Nova Pangaea Technologies, in Tees Valley, to make biofuels from forestry waste.

The government says the grants will go towards making 3 million litres of biofuel by 2018, and 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. This £25 million is not only a vital investment in technology that will help secure a greener future but will also support the creation of thousands of jobs.

“Advanced biofuels have the potential to save at least 60% of the greenhouse gas emissions from the equivalent fossil fuel. The three successful bids show how the government is investing in transport and making better, clean journeys.”