The money will be used to underpin significant private sector investment in one or more facilities in order to drive the development of the UK’s biofuel industry.
The funding will be provided over three years from 2015 following a competition to identify the best and most suitable industry proposals.
The Department for Transport will commission a feasibility study to report on the detailed design of the proposed competition including eligibility criteria and funding scheme options, as well as ensuring the project complies with EU State aid rules.
In announcing the funding, Baker said: “It is clear that in the long term advanced biofuels will be important in areas that we cannot otherwise decarbonise, such as aviation. This announcement will help put the UK in a good position to meet this demand.”
Further details on the competition, including the feasibility study, will be provided in the autumn alongside a range of potential measures to support the most sustainable fuels.
Maxine Perella