The Northwest Regional Development Agency (NWDA) has announced a new £4.4 million fund to support small businesses that want to invest in green technology.

Focusing mainly in biomass, the Improving Your Resource Efficiency fund will cover up to 50 per cent of the purchase costs for energy efficient products such as solar panels up to a value of £175,000 and will run until 2012.

NWDA chief executive Steven Broomhead said the funds will improve the northwest's green credentials and will "re-establish the green agenda during these economically challenging times".

Biomass could be a key factor in energy production in the coming years as firms seek to reduce their carbon footprint and their reliance on oil-based fuels.

This is a renewable energy source derived from living or dead plant material, which is grown to generate electricity and can be used as fuel for industrial production.

Although it still puts carbon dioxide into the atmosphere, the amount absorbed during its growth offsets it, so a reasonably stable level of atmospheric carbon results from its use.