MIT yesterday launched a new clean energy entrepreneurship competition, promising a $200,000 prize for the entrepreneur who comes up with the best commercially-viable green energy idea.

The competition will run across the US and will be sponsored by MIT, the US Department of Energy and NSTAR Electric & Gas Corporation. It will invite entrepreneurs to pitch business plans that " involve products or technologies that promote, enhance or advance diversity of supply sources or transmission; efficiency in resource use and/or reduction in greenhouse gas emissions".

NSTAR chairman, president and CEO Tom May said that the competitors would have the opportunity to address burgeoning consumer demand for clean and efficient energy. "We want to help these entrepreneurs get their great ideas and possible solutions to the nation's energy needs off the drawing boards and into the homes and businesses of our customers," he added.

The semi finalists and finalists of the competition will have to present full business plans to a judging panel of clean energy and venture capital experts. The Grand Prize of $200,000 and three secondary prizes of $20,000 each will awarded on May 14 next year.

The competition comes as a new report revealed that US venture capital investment in clean technology firms is booming with $2.6bn invested in the first three quarters of this year alone.