Energy efficiency funding worth half a million pounds is on offer after the Carbon Trust raised the threshold of their interest-free loan scheme.

Businesses across the UK can now apply for loans up to a maximum of £500,000, as opposed to the previous limit of £400,000.

The state-sponsored efficiency agency announced the change as a response to an increasing demand for high-value loans during the past few months.

Through the scheme, which is playing an integral part of the Carbon Trust's £100 million Big Business Refit campaign, companies can claim interest-free funding to lower their energy bills by purchasing new, more efficient plant and equipment.

More than 800 loans, averaging £38,000, have been offered during the past year, with the Trust confident they will lend the full £100 million over the next 18 months.

The raised threshold was revealed on the same day the Carbon Trust made their largest loan to date - £400,000 to North East steel component manufacturer Astrum.

The firm will use the funding to replace the air compression system at its foundry in Stanhope, County Durham. A move that will halve the cost of generating compressed air.

Mike Hutchinson, from Astrum, said the monthly electricity savings will pay for the capital repayments on the interest-free loan:

"It was a no brainer. It's cost neutral for four years and after that we will be saving."