25th June, 2014 by Amy Hopkins

Whisky waste could soon be used to fuel cars after new funding has been pledged to help the initiative become a €125 million-a-year industry in the UK.

An investment of €1.5 million, including more than £800,000 from the UK Government, has been pledged to Celtic Renewables, allowing the Edinburgh-based company to undertake the next phase of its project aiming to turn whisky by-products into biofuel that can power vehicles.

The funding has allowed the biofuel company to replicate work done in its Scottish laboratory at an industrial scale, as well as develop its technology at Bio Base Europe Pilot Plant (BBEPP) in Ghent.

Celtic Renewables hopes to create the world’s first industrial samples of biobutanol derived from whisky production residues, allowing it to be used as a direct replacement for petrol and diesel, without the need to modify engines.

“Our ambition to grow a sustainable international industry from Scotland requires strong partnerships and we are delighted to be working with Bio Base Europe Pilot Plant, to help us complete the next crucial stage in our development,” said Professor Martin Tangney, founder and president of Celtic Renewables.

Scientists at Celtic Renewables has already proved the concept of producing biobutanol from draff – the sugar-rich kernels of barley which are soaked in water to facilitate the fermentation process necessary for whisky production – and pot ale, the yeasty liquid that is heating during distillation.

Government support

The firm plans to build its first commercial demonstration facility in Scotland and it is targeting a proposed €31.25million fund operated by the Department of Transport to help fund this.

This most recent round of investment comprised £410,000 in private equity investment and £800,000 from the Department of Energy and Climate Change (DECC) at Westminster.

Michael Fallon, the UK Energy Minister, said: “This novel technology takes the by-products of Scotland’s finest export to power vehicles.

“DECC’s Energy Entrepreneurs Fund was designed to support small and medium-sized businesses like Celtic Renewables to develop state-of-the-art technologies, products and processes that will help us become more energy efficient.

Established by the EU to enable the development of a sustainable biobased economy, BBEPP was founded to support the advancement of sustainable biobased processes that cut reliance on non-replaceable fossil fuels.