A new European Union scheme will stimulate up to £80m of bioenergy projects in the UK and seven other European countries.
The UK has pledged £10m in the scheme worth around £38m in public money, with projects in Finland, Sweden, Germany, Spain, Denmark, Switzerland and Portugal eligible for grants.
The EU believes the cash will help stimulate millions of pounds of further private investment in bioenergy, which can be used to produce heat, electricity or transport fuel.
The scheme, called ERA-NET Plus BESTF, will only fund proposals that demonstrate a route to commercialization. Money will be given to projects where the majority of the funding comes from the private sector.
The UK’s Energy Minister, John Hayes, said that the development of the bioenergy supply chain will support growth and jobs in the UK economy and abroad.
“Bioenergy has an important role to play in our energy mix, helping cut carbon as well as support jobs and spur on economic growth on a national and international scale,” said Mr Hayes.
Organisations will be invited to submit project proposals within the next few months, with grants expected to be made in early 2014.