Cambridge-based Web developing company Liquivista has announced it is developing full-colour e-paper that will be also able to display videos. The three-year, £12 million initiative is being backed by U.S. firm Plastic Logic, and the state-funded Technology Strategy Board, Tech Radar reported Thursday.

The e-paper will use “electrowetting,” in which a thin layer of liquid changes colour when it reacts to an electric charge,and does so fast enough to display video content.

The power consumption will be “far lower” than LCD screens, according to PC Pro.

"Colour and video capability will broaden the application of electronic paper displays to all types of content and device," said Liquivista CEO Mark Gostick."We are aiming to realise the full potential of electronic paper displays as the best way to show any content on the move."

Tech Radar reported that the system may allow newspapers to feature web content through RSS or WiFi/3G with videos and flash embedded in articles.