The government is investing £31 million to cut industry’s reliance on fossil fuels and make energy bills cheaper.
Up to £6.6 million of this funding will go directly into research to find alternatives to diesel, investigating the feasible use of green hydrogen and other e-fuels in transport or machinery.
More than £5.5 million will be devoted to generating fuels from biomass and waste products, as well as designing heat pumps to be used in manufacturing sites, weaning the UK off natural gas – a key reason for sky-high energy prices.
Carbon capture technology will receive £12 million funding, with the remaining investment spread around other low carbon technologies.
British Steel in Scunthorpe, Punch Flybrid in Silverstone and Ingenza in Edinburgh are three of the projects set to receive funding.
Energy Minister Greg Hands said: “As we accelerate the UK’s energy independence by boosting clean, home-grown, affordable energy, it’s crucial that our industries reduce their reliance on fossil fuels.
“This investment will help them to not only cut emissions but also save money on energy bills, on top of supporting jobs by encouraging green innovation across the UK.”