As part of plans to promote clean alternative fuels, the government is offering US$28 million (£22 million) in funding for projects in the UK to develop low carbon waste-based fuels for planes and lorries, with matching funding from industry.
Trials of sustainable jet fuel, made from waste materials, have taken place in Europe and North America and now the launch of a UK competition intends that British experts will conduct pioneering research in this sector.
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The new fuels are chemically very similar to conventional fuels, so can be used in existing aircraft without the need for any engine modifications.
The government believes low carbon transport fuels made from waste materials could be worth US$775 million (£600 million) a year to the British economy by 2030, and could also support up to 9,800 new jobs. It says planes and lorries powered by waste fuels could use up to 90 per cent less carbon than traditional fossil fuels.