The US state of Pennsylvania says it will invest $5.3m in 12 new clean energy projects that will use innovative ways to drive cost savings, create jobs and conserve energy.

Pennsylvania Governor Edward Rendell said that the state has been flooded with renewable energy business proposals.

More than $11.6m in private investment will be spent on the projects, as well as federal funding.

“These projects will produce short- and long-term benefits by putting people to work and creating immediate energy savings, and by producing clean, renewable energy that will help power homes for years to come,” Rendell said.

It is expected that 900 homes will be powered by the projects, saving $1.7m in energy costs a year.

Innovative projects that are eligible through the programme include renewable energy deployment such as biomass, waste coal reclamation for energy, deployment of innovative efficiency technologies and distributed generation projects.