The projects set to receive funding will work on developing new technologies that could help companies switch to more energy-efficient means of production, use data more effectively to tackle the impacts of climate change, and help support the creation of new green jobs.

The package will see £139m going to support heavy industry in its transition from natural gas to clean hydrogen power, and scaling-up carbon capture and storage (CCS) technology, which can stop over 90 per cent of emissions being released from industrial plants into the air.

Another £149m will be used to drive the use of innovative materials in heavy industry; the 13 initial projects will include proposals to reuse waste ash in the glass and ceramics industry, and the development of recyclable steel.

An additional £26m will support advanced new building techniques in order to reduce build costs and carbon emissions in the construction industry.

A further £10m will be spent on state-of-the-art construction tech, which will go towards 19 projects focused on improving productivity and building quality, for example re-usable roofs and walls and “digital clones” of buildings that analyse data in real time

The government said it would also welcome bids from the automotive sector for a further £10m in R&D funding to help companies take cutting-edge ideas from prototype to market, including more efficient electric motors or more powerful batteries.

The new funds come amid widespread calls to reboot the economy in the wake of the pandemic in ways that help tackle the climate and nature crises.

Prime Minister Boris Johnson said: “The UK now has a huge opportunity to cement its place at the vanguard of green innovation, setting an example worldwide while growing the economy and creating new jobs.

“That’s why we’re backing cutting-edge research to cut costs and carbon across our great British industries, and even paving the way for the first ever zero-emission, long-haul passenger flight – so that our green ambitions remain sky high as we build back better for both our people and our planet.”

Business and energy secretary Alok Sharma said: “Climate change is among the greatest challenges of our age.

“To tackle it we need to unleash innovation in businesses across the country.

“This funding will reduce emissions, create ‘green collar’ jobs and fuel a strong, clean economic recovery, all essential to achieving net-zero emissions by 2050.”

Emma Pinchbeck, chief executive of trade association Energy UK, welcomed the announcement, adding: “Our recent report on the Green Recovery highlighted the role of hydrogen and carbon capture, utilisation, and storage (CCUS) and found that government investment would create jobs across the UK and give us a global ‘early mover’ advantage on these low-carbon technologies.

“Hydrogen and CCUS are a part of the bigger Green Recovery. If government invests in low-carbon energy technologies and businesses, we are confident that it will massively benefit the economy, environment and society.”