It follows a Government decision to set up a £30 million fund to encourage operators to use environmentally friendly 'green' machines.

UK Transport Secretary Andrew Adonis announced the package yesterday (Wednesday).

It is aimed at transforming England's bus fleet by offering firms discounts worth up to £100,000 a time for buying vehicles which produce low carbon emissions.

The news is expected to deliver a huge financial shot in the arm for the Camelon-based factory that employs nearly 1000 people. ADL is already recognised as a world leader in hybrid technology and in pole position to take advantage of the deal.

This week a dozen double-deckers built in Camelon and carrying passengers around London as part of a trial to prove their worth, clocked up 100,000 miles and saved 50 tonnes of greenhouse gasses and delivered a 40 per cent improvement on miles per gallon.

The company is promoting its Enviro series to the organisers of the London 2012 Olympics as THE bus to use to transport athletes, officials and fans. It was unveiled to a global audience last August at the end of the 2008 Games in Beijing.

ADL chief executive Colin Robertson said: "This is outstanding news for the industry and we can only hope that it will be followed up by the Scottish Parliament.

''Gap funding is unquestionably the way to stimulate the purchase of hybrid vehicles and to take us on the critical path towards volume production. In broad terms, £30 million of support funding should represent around 300 buses.

''We have been lobbying hard for this type of intervention and it is good to know that they realise the potential to deliver this major 'green' initiative and stimulate activity in the sector and protect jobs at a very difficult time."

The Transport Secretary said: "CO2 emissions from buses have increased significantly over the last 10 years. For the sake of our environment and the air quality in our towns and cities it's important to encourage the industry to move towards low carbon models. I'm delighted that this is an industry where UK manufacturers are leading the field. Therefore these companies and their employees are well placed to benefit from this initiative.

"Over the next two years we expect this fund to support the purchase of several hundred low carbon buses and, just as importantly, help to stimulate the development of a new green technology industry and help to safeguard jobs in bus manufacturing."