Edinburgh-based biofuel company Celtic Renewables has signed an agreement with Europe’s foremost biotechnology pilot facility to undergo next-stage testing of its process to turn whisky by-products into biofuel that can power current vehicles.

The partnership, which will allow the company to develop its technology at Bio Base Europe Pilot Plant (BBEPP) in Ghent, has been made possible by second round funding worth €1.5million, including more than €1million from the UK Government, to help meet its ambition of growing a new €125 million-a-year industry in the UK.