A UNIVERSITY spin-out firm aiming to make coal a green fuel has received more than £160,000 to base itself in the Tees Valley.

C-Capture, a spin-out from the chemistry department at the University of Leeds, has developed technology which aims to capture CO2 from the flue gas streams of coal-fired power stations and other power generation sites.

It is hoped the firm, which is using the investment to base its engineering operations at the Wilton Centre, in Redcar, east Cleveland, can make coal a more environmentally- acceptable energy source.

The company has received seed capital totalling £160,500 from the £25m Finance for Business North-East Technology Fund, managed by the IP Group.

Christopher Rayner, a director of C-Capture, said: “Without exception, power generators that use coal-fired power generation are getting ready to implement carbon emission reduction technology as soon as feasible, because there is a real recognition that the Government will act promptly and firmly to protect our environment – and the UK should be looking to position itself as a technology leader in this field.”

Duncan Lowery, senior investment manager in the North-East office of the IP Group, said: “C-Capture is a fantastic business that is absolutely of its time and which could put the North-East on the map in terms of this emerging green technology.

“It is a good example of the type of clean technology we are seeking to back. It makes sense in today’s economy as well as having significant future potential.”

The North-East Technology Fund, one of six under the banner of the £125m Finance for Business North-East super fund, is designed to take research or science, such as that developed in universities, and turn it into real businesses.