A SCOTTISH firm which produces an environmentally-friendly "whisky fuel" has been awarded a share of a £25 million UK Government green fuel fund.
Edinburgh-based Celtic Renewables will receive £11 million to use waste products from the world-famous whisky industry which would otherwise be disposed of and turn them into biofuels for cars and lorries.
Professor Martin Tangney, founder of Celtic Renewables said: "This funding from the Department for Transport is transformational for Celtic Renewables and will underpin the development of a brand new innovative industry in the UK.
"The construction of our demonstration facility will herald the reintroduction of ABE fermentation to the UK for the first time since the 1960s, but this time for advanced biofuel production using entirely sustainable raw materials."
Celtic Renewables, launched in January 2012, is a spin-out company from the Biofuel Research Centre (BfRC) at Edinburgh Napier University.
The company previously received £250,000 from the Scottish Investment Bank, the investment arm of Scottish enterprise, and another £250,000 from a private investor.
In February, it unveiled the first samples of bio-butanol made the by-products of whisky fermentation using a process developed by its scientists.
The company hopes to build its first demonstration facility at the Grangemouth petrochemical plant by 2018.
Julie Hesketh-Laird, Deputy chief executive of the Scotch Whisky Association, said: "The Scotch Whisky industry is always looking at innovative ways to support Scottish industry and help the environment. Projects that make use of whisky by-products for alternative means are a great example of us working together to find a high-tech solution.
"The production of bio-butanol from draff and pot ale is another example of the industry putting its by-products to a good use to promote sustainability and jobs. There are many such exciting and worthwhile initiatives across the Scotch Whisky industry."
A further £11m has been allocated to Advanced Plasma Power, in Swindon, to help develop biofuels from ordinary household waste.
Nova Pangaea Technologies Ltd, based in Tees Valley, will receive £3m to help make biofuels from forestry waste.
Transport minister Andrew Jones said: "This is a great example of the UK government’s commitment to innovative transport technology and supporting jobs and growth.
"Biofuels have an important role to play in keeping Britain moving forward in a sustainable and environmentally-friendly way. This £25m is not only a vital investment in technology that will help secure a greener future but will also help support the creation of thousands of jobs.
"Advanced biofuels have the potential to save at least 60 per cent 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."
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