The Department of Transport is to share £25 million to help develop green biofuel from waste technology.
Fuels to power cars and lorries will come from waste whisky products, household waste and forestry waste.
Celtic Renewables in Edinburgh will get £11 million to fund a new plant that will turn whisky waste into biofuels, and it plans to open three more plants across Scotland.
Advanced Plasma Power in Swindon will receive £11 million to develop biofuels from household waste, and Nova Pangaea Technologies from Teesside will be given £3 million to generate biofuels from waste forestry products.
Transport Minister Andrew Jones said: “This is a great example of our commitment to innovative transport technology and supporting jobs and growth.
“Biofuels have an important role to play in keeping Britain moving forward in a sustainable and environmentally-friendly way. This £25 million is not only a vital investment in technology that will help secure a greener future but will also support the creation of thousands of jobs.
“Advanced biofuels have the potential to save at least 60% of the greenhouse gas emissions from the equivalent fossil fuels. The three successful bids show how the Government is investing in transport and making better, clean journeys.”