The bioplastics specialist is leading a consortium containing the University of Warwick, the University of Leeds and the Centre for Process Innovation.
It will run a three year project building on Biome’s previous research into deriving organic chemicals from lignin for the manufacture of bioplastics.
With a total project cost of £1.7m, Biome will contribute £0.2m of resources.
The firm has previously spoken with FoodProductionDaily about its work.
Vince Cable, Business Secretary, said the government will support the sector to boost UK competitiveness.
"Whether it's developing new antibiotics or producing plastics from plants, this funding will help our talented researchers across the UK continue to bring their innovative ideas to market.”
A total of 23 projects will share almost £20M from the BBSRC-supported Industrial Biotechnology Catalyst introduced in January last year.