The big six energy firm has just acquired a 19 per cent stake in Ecoenergy at a cost of £1 million.
Ecoenergy is one of the UK's leading biomass boiler and renewable heating solutions specialists.
Its biomass boilers use non-conventional fuel, such as wood chips or pellets to produce renewable heat and electricity.
Gearoid Lane, managing director of British Gas New Energy, said: "This investment is another step forward in our development of a broad range of renewable, energy efficient and low carbon technologies that we can offer our customers."
According to the government's Renewable Energy Strategy Consultation, the amount heat created from renewable sources in the UK is currently one per cent, but this could reach as much as 14 per cent, with biomass responsible for a 40-80 per cent share.
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