Businesses will be able to bid for funds from the Greenhouse Gas Savings Capital Investment fund to deliver waste reduction initiatives, recycling services or reuse projects.
Funded projects are expected to hit targets including tonnage of waste diverted from landfill and CO² emissions reductions.
CO²Sense Yorkshire operations director Andy Hartley said: With increasing landfill tax and a potential ban on sending food waste to landfill, now is the time for food and drink waste collection and processing businesses to look at expanding into this market opportunity.
The fund has already assisted projects such as Bradford Environmental Action trust, who now work with Associated Waste Management, to set up a segregated food waste collection for businesses around Halifax and Bradford. Allensway Recycling received funding for a depackaging and wash plant to divert an additional 10,000 tonnes of food waste from landfill per year.
CO²Sense Yorkshire food and drink project manager Andy Lowe said: Our key aim is to help businesses to realise the benefits of resource efficiency and to increase the competitiveness, capacity, quality and scale of companies in Yorkshire and Humbers food waste sector.
Businesses that were successful in the last round of investment funding received between £8,000 and £75,000 support.