Scottish SMEs given biofuel opportunity

A new biofuel programme has been launched in Scotland after securing more than one million pounds worth of investment.

Five Scottish universities and research centres have teamed up for the project.

The European Regional Development Fund, the Scottish government and Scottish Enterprise have ploughed some £1.6 million into the project.

Professor Martin Tangney, director of Edinburgh Napier University's Biofuel Research Centre, said: "We are mandated by the EU to have a certain percentage of biofuel by 2020 and the current debate on biofuel legislation is putting increased pressure on the industry to produce biofuel from wastes and residues.

"This Government backed partnership is aimed at helping Scottish SMEs to achieve exactly that goal and we will provide a business and R&D support base to grow the biofuel sector in Scotland."

The scheme means that all SMEs will be able to apply to the biofuel programme's Business Innovation Fund.

A total of £70,000 will be made available for companies to look into how they can exploit existing and future research commercially. It will also go towards them conducting feasibility studies.

Grants are to be awarded on a competitive basis.

Rural director of Scottish Enterprise Julian Pace commented: "The idea of creating revenue from waste material offers a great opportunity for SMEs to exploit, particularly those in rural areas of Scotland.

"We need to help our businesses understand how this could impact their bottom line to help grow while contributing to the Scottish government's ambitious low carbon targets."

The Scottish Biofuel Programme will receive £582,000 of co-funding from the European Regional Development fund over a period of three years. Meanwhile, £250,000 will be coming from Scottish Enterprise and £250,000 from the Scottish government. Extra match-funding will also be carried out by the five partner institutions.