The government yesterday moved to boost Britain's nanotechnology industry with an £18m support and incentive package.

The Department of Trade and Industry (DTI) deal will supply 25 groups with £15m in funding for initiatives ranging from anti-corrosion coatings and electronics to water purification and printing, providing up to a maximum of half of each project's total value.

A further £3m has been promised for Inex, a microsystems and nanotechnology facility for industry, based in Newcastle.

These grants represent the first round of funding to be allocated from the DTI's £90m Micro and Nanotechnology Manufacturing Initiative in support of both nanotechnology applied research programmes and for the creation of relevant new facilities across the country.

Further grants will be made available over the next five years to complete the initiative, the government promised.

The grants are part of the government's drive to help companies, research organisations and universities to exploit potential applications for the new technology so that the UK can be a leading country in this area.

DTI minister Nigel Griffiths said in a statement: "Nanotechnology is an important and exciting emerging technology, and one that has the capacity to improve daily life for us all.

"It is about designing new products and improving existing ones by making things much smaller, faster, stronger, or more energy efficient.

"We want to help organisations turn ideas into reality, helping create jobs and prosperity for companies in the UK."

Other government programmes in support of the UK's nanotechnology industry include £70m from Research Councils UK for a wide range of activities, including two cross-Council Interdisciplinary Research Collaborations in nanotechnology, and the Basic Technology Research Programme.

The DTI has also helped to set up the UK Micro and Nanotechnology Network (MNT Network), responsible for raising awareness in UK industry and helping organisations to move into this sector.

Speaking on behalf of the MNT Network, chairman Dr Hugh Clare said: "The commercial exploitation of nanotechnologies presents a great opportunity for UK business.

"A well funded and supported nanotechnology sector means more high quality research, more sustainable jobs and increased wealth creation."