Efforts to rescue a Grade II-listed watermill near Malton, North Yorkshire, have been given a funding boost from the Heritage Lottery Fund (HLF).

A first round pass totalling £19,500 will enable the Renewable Heritage Trust to draw up detailed plans for the education and community centre at Howsham Mill and secure a full grant of nearly £600,000. The trust has been working since 2004 to restore the property and return the waterwheel to use as part of a hydro-electricity scheme - the sales of which will match the HLF funding.

Work has already been completed on stage one of the project to rejuvenate the mill, including the restoration of the granary building - home to the hydro generating equipment. The latest funding award will enable the trust to move forward with commissioning architects and engineers to progress the plans for phase two - the restoration of the main building.

A Country Houses Foundation grant has also been provided to achieve £39,500 funding in total, which will also help pay for a conservation architect to draw up a management plan. Fiona Spiers, head of the HLF for Yorkshire and the Humber, said: "We're extremely pleased to give initial support to the Howsham Mill project which demonstrates some really innovative thinking in bringing alive a wonderful heritage asset while developing a working legacy for its future."

Once work is completed on the final drawings and costings, a bid will be submitted by the trust for full HLF funding support.