The Carbon Trust has pooled together a group of UK businesses in a bid to develop an effective and sustainable commercial biofuel product.
Headed by the British energy firm Axion Energy, the consortium will look at the demands and requirements of the biofuel industry, taking into account a range of methods for its production.
The group have been asked to consider ways that municipal waste such as wood, grass cuttings and food could be used in a profitable and environmentally friendly way.
Commenting on the project, the UK’s transport minister Sadiq Khan said: "Many biofuels such as those from waste, have the potential to provide significant carbon reductions.
"The challenge is identifying and developing those biofuels which deliver the most environmental benefits."
With research expected to start straight away, the group hope to produce their first marketable biofuel source by as early 2014.
Scientists from the University of York recently lent their expertise to the project after claiming to have discovered a way to reduce the amount of carbon dioxide released in the biofuel conversion process by as much as 95 per cent, as reported in the Telegraph.
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