The UK Government has provided seven industry-led projects with a share of £2 million to develop low carbon fuels.
The winners will use the money to develop proposals for advanced fuels production plants, aiming to reduce emissions, improve air quality, stimulate investment and create jobs.
Proposals include the production of aircraft jet fuel from steel mill waste gases and a project exploring the use of waste wood to produce a synthetic natural gas for trucks.
Velocys Technologies, which is developing a range of kerosene and petrol substitutes, won £434,000 to deliver a waste-to-sustainable jet fuel project.
The scheme, which has now secured £4.9 million of total funding, is being developed with the financial and technical support of Shell and British Airways.
The team is developing the engineering and business case for the construction of a plant able to take hundreds of thousands of tonnes of waste per year and convert it into jet fuel able to deliver 70% greenhouse gas reductions and 90% reduction in particulate matter emissions.
Transport Minister Jesse Norman said: “We are committed to reducing carbon emissions from transport to tackle climate change and make the sector as sustainable as possible.
“Supporting projects like these is just part of our work to help ensure the UK transport sector is greener than ever.”