Biome Technologies has announced on Thursday that it has been awarded an additional £0.6 million of grant funding. Indeed, the leading bioplastics and radio frequency technology business has been awarded additional funding to support a project focused on the production of a novel bioplastic building block. Shares in the group increased by almost 6.5% on the announcement.

Biome Technologies is a commercially driven technologies group with two divisions; Biome Bioplastics Limited and Stanelco RF Technologies Limited. Biome Bioplastics Limited is a market-leading developer of bio-based and biodegradable plastics.

CEO of Biome Technologies, Paul Mines, commented on the announcement:

“The UK government has set a target of eliminating all avoidable plastic waste by 2042. Bioplastics will play a crucial role in achieving this target by reducing waste. However, current bioplastic technology is limited by price and performance in some applications. Our development programme is intended to change that position by preparing a new generation of polymers with improved functionality.”

Biome Technologies has led a £6 million development program over the last five years.

The aim of the project is to develop a range of novel highly functional bio-based and biodegradable polymers, bringing them to market by using industrial biotechnology techniques. Seven universities, and roughly 25 scientists, engineers and other partners are currently involved in the project.

The UK Government’s Industrial Strategy outlines 4 Grand Challenges. One of these includes Clean Growth, which aims to put the UK at the frontline of future industries. A main focus of this is the use of renewable materials.

Additionally, a recent report by bioeconomy consultants NNFCC outlined that plant-based plastics have the potential to create 34,000 jobs whilst contributing £1.92 billion to the UK economy in the next decade alone.

The use of renewable energy has been on the rise in recent years, with nations across the globe increasingly taking part to reduce their environmental footprint. Clearly, plant-based and biodegradable polymers will both contribute positively to the UK’s economy over the next decade and reduce our environmental footprint as they are plant-based rather than oil-based.

Thursday’s market news also includes the FTSE 100 slumping to a two-year low. Elsewhere, Thames Water profits were damaged by extreme weather and fines and Ted Baker announced its revenue has been hit by “external trading conditions”.

At 08:04 GMT today, shares in Biome Technologies plc (LON:BIOM) were trading at +6.48%.