The initiative aims to build a renewable transport fuel refinery in Grimsby, which will deliver 15-20 per cent of the UK’s requirements by 2016, the firm said in a statement.

The investment seeks to provide a return of 100 per cent to investors, with a post-tax internal rate of return of up to 40 per cent.

The minimum investment in Future Fuels is £50,000.

Future Fuels recently acquired the assets of a US bioethanol plant in March 2013. The additional capital raised will be used to fund the integration of the new assets into the project plan, progress site development work, finance the maintenance of the US plant’s assets and to undertake a thorough review of US value maximisation opportunities.

The firm said the market for bioethanol is set to triple in the next seven years as UK Government and EU regulation focus on renewable transport fuels at the heart of their carbon reduction strategy. 

"Our production facility will meet the needs of the legislative and environmental push for greener fuels in the UK and EU. This development is well placed to capitalise on the market opportunity for RTFs and we look forward to exploring the best possible revenue and profit generation options in the UK and the US,” said Piers Denne, director of sales at Future Capital Partners.