Government ministers announced a total of 150 colleges would benefit from the funding, which will be invested over the next three years.
A new report published today by design and engineering firm Arup gives recommendations on how the further education community can ensure all new college facilities are zero-carbon by 2016, in line with Government targets.
The report suggests an incentive scheme be developed for the building industry to encourage the design of low-carbon buildings and an education programme for everyone involved in sustainable building in further education.
During the next six months a group of experts will work with the further education sector to develop practical schemes based on the recommendations.
Further education minister Bill Rammell said: "We have made huge progress over the last 10 years. In 1997 there was not one penny in the mainstream FE capital budget.
"Today is a celebration of the exciting transformation taking place within the FE Estate and our dedicated investment of £2.3 billion pounds over the next three years will continue to deliver state-of-the-art facilities to benefit learners and principals, employers and the wider community."