English farmers, foresters and local authorities can apply for £1.5 million grants to help develop the supply of biomass through round three of the Bioenergy Infrastructure Scheme, which was launched today (November 23).
The Department of Energy and Climate Change (DECC) sees biomass as having an important role to play in meeting UK and EU renewable energy targets and is therefore extending the scheme, which was originally launched in 2003 and had a second round of grants in 2008.
It aims to increase renewable energy generation and reduce emissions, while contributing to sustainable land management and in 2008 funded 75 projects. But as the Renewable Heat Incentive (RHI) is likely to be implemented next year following consultation, the Scheme is being wound down.
Projects in England run by small and medium sized enterprises (SMEs), local authorities and charities, can apply for grants up to £200,000 to develop the supply chain required to harvest, process, store, and supply biomass to heat, combined heat and power, and electricity end-users.
However, it applies only to certain crops: short rotation coppice (willow, poplar, alder, ash, hazel, lime, silver birch, sweet chestnut and sycamore), miscanthus, switch grass, reed canary grass, prairie cord grass, rye grass, straw, woodfuel from forestry, arboricultural tree management and primary processing and other energy crops at DECC's discretion.
The scheme rules out wood from secondary processing and any wood that has been chemically treated or painted, oilseed rape to be used to produce heat and electricity, biomass for processing into transport fuels or animal waste products.
Grants will be available for projects which complete by the end of March 2011. The deadline for receipt of applications is February 26 2010, although applicant projects will be assessed on a rolling basis as they are received and the Department said it may consider extending this deadline, depending on the rate of response.
DECC also announced that it is preparing for Round 6 of the separate Bio-energy Capital Grants Scheme (BECGS), which awards capital grants towards the cost of equipment in complete biomass installations, and is set to make a launch announcement in December.
Energy and Climate Change Minister, Lord Hunt said this new round of the Scheme was especially important with the global climate change summit in Copenhagen looming.
He said: "We have a target to get 15% of all energy from renewable sources by 2020, and biomass can make a significant contribution.
"We funded 75 projects in round two of this scheme and we will continue to work to ensure that the supply chain is in place to create a thriving bio-energy market in England, which is good for the environment and good for business," he added.
For application forms, guidance and all information regarding the Scheme, contact the Bioenergy Infrastructure Scheme Helpline at TUV-NEL:
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