Bio-fuel company Celtic Renewables — a spin-out from Edinburgh Napier University — has signed an agreement with a leading European bio-technology pilot facility to turn by-products from the production of whisky into bio-fuel capable of powering current vehicles.

This partnership will allow Celtic Re-newables to develop its technology at the Bio Base Europe Pilot Plant in Ghent; it was made possible through second-round funding worth £1.2 million, which includes more than £800,000 from the UK Government.

Celtic Renewables has already proved the concept of producing bio-butanol from draff (the malted-barley residue, containing fibre, proteins and oils) and pot ale (the residue from the distillation process, containing proteins, carbohydrates and yeast).