New stem cell research which could lead to therapies to mend livers and bones was revealed yesterday.

Scottish scientists are looking at ways in which liver disease could be treated using embryonic stem cells - reducing the need for transplants.

The research is one of two projects at Edinburgh University which has received £3.6m from Scottish Enterprise, the Medical Research Council (MRC), in collaboration with the UK Stem Cell Foundation.

The second will look at new ways to repair damaged bone and cartilage, using embryonic stem cells.

Professor John Iredale, of the MRC Centre for Regenerative Medicine at Edinburgh University, said: "In the first instance, the successful development of liver cells from embryonic stem cells will revolutionise and improve the way we are able to test drugs and novel therapies both for the liver and other organs and ultimately may lead to a stem-cell based approach to regenerate the liver.

"This would have a significant impact on reducing the need for donated organs and provide less invasive and traumatic treatment for patients."

Liver disease is the fifth most common cause of death in the UK. Scientists will research how liver cells (hepatocytes) derived from embryonic stem cells can be used in therapies for acute and chronic liver disease.

The research will gain greater understanding as to how embryonic stem cells differentiate to become liver cells, and how these can be made to repair damaged livers.

The second project, which receives £1.7m of the funding, will look at improving the differentiation of embryonic stem cells into cells that have the potential to make bone (oestoblasts) and cartilage (chondrocytes).

Researchers will also address potential safety issues and how effective these cells would be as treatments.

Dr Brendon Noble, also of the MRC Centre, said: "Cartilage damage from diseases such as osteoarthritis is a major problem in the UK.

"If we can prevent cartilage from breaking down, or repair it, then we could potentially reduce the need for hip replacements.

"Equally, there are patients who have been involved in traumatic accidents where their bones have been shattered.

"If we can find a way of healing the bone using stem cells then we can dramatically improve the quality of life for these patients."

The research using embryonic stem cells will run alongside an existing project in which scientists are developing a revolutionary way to mend damaged bones and cartilage using a patient's own stem cells.

Sir Richard Sykes, chairman of the Board of Trustees, UK Stem Cell Foundation, said: "Our remit is to support high quality translational projects whose direct aim is rapid and safe progression towards clinical application."