Three companies have been awarded a share of a £25m fund to help develop greener fuel technology transport minister Andrew Jones has announced.

The projects will use waste products which would otherwise be disposed of and turn them into biofuels, fuelling cars and lorries.

Jones said: “This is a great example of our 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 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.”

The winning schemes are:

• Celtic Renewables, based in Edinburgh, has been awarded £11m to fund a new plant to make biofuels from Scotch whisky by-products, with plans to open a further three commercial plants across Scotland in the future;

• Advanced Plasma Power, in Swindon, will receive £11m to help develop biofuels from ordinary household waste; and

• Nova Pangaea Technologies, based in Tees Valley, will receive £3m to help make biofuels from forestry waste.