Small to medium-sized enterprises (SMEs) are to get a share of £1.5 million worth of grants from the Government to help develop the supply of UK biomass.
The grants, which local authorities (LAs) and charities can also bid for, are aimed at helping ensure the UK meets its renewable energy targets.
Under the grant scheme, potential producers, such as farmers, foresters and LAs will be given funding, as part of round three of the Government's Bio-Energy Infrastructure Scheme. The funding will go towards producing crops, such as miscanthus, short rotation coppices, rye grass and woodfuel from forestry that will produce fuel suitable for biomass. The scheme will help producers with costs related to harvesting, producing, storing and supplying.
The UK Government has set itself a target to generate 15 per cent of the UK's energy from renewables by 2020 and the Department of Energy and Climate Change (DECC) said the funding will further what it calls the "important role" it sees biomass playing in meeting UK and EU targets for renewable energy.
Energy and Climate Change Minister, Lord Hunt said: "As we approach Copenhagen we need to encourage business to invest in renewable energy. We have a target to get 15 per cent 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."
The latest biomass funding round, however, comes as new independent research shows that supply chain problems threaten to disrupt UK biomass plans.
The new Verdantix research, which focused on large-scale biomass energy plants, claims the biomass industry is going to face critical supply chain issues will block planned investments because the UK biomass supply will only meet five to 10 per cent of projected demand by 2014. This means power generators will import millions of tonnes of biomass supplies from abroad leading to security risks.
The Government says that, as with previous rounds of the Bio-Energy Infrastructure Scheme, the objectives of grants are to increase renewable energy generation and reduce greenhouse gas emissions, while contributing to sustainable land management.
Biomass energy reduces carbon emissions because the carbon dioxide emitted as the biomass is burnt has already been offset by the carbon dioxide the crop absorbed as it grew, while fossil fuels release carbon dioxide that has been locked away for millions of years.
The scheme is restricted to projects based in England and grants will only be available for projects which complete by March 31 2011 with the deadline for receipt of applications being the February 262010.
DECC said it was also preparing for Round Six of the separate Bio-Energy Capital Grants Scheme, for which a launch announcement will be made in December.
Under the grant scheme, potential producers, such as farmers, foresters and LAs will be given funding, as part of round three of the Government's Bio-Energy Infrastructure Scheme. The funding will go towards producing crops, such as miscanthus, short rotation coppices, rye grass and woodfuel from forestry that will produce fuel suitable for biomass. The scheme will help producers with costs related to harvesting, producing, storing and supplying.
The UK Government has set itself a target to generate 15 per cent of the UK's energy from renewables by 2020 and the Department of Energy and Climate Change (DECC) said the funding will further what it calls the "important role" it sees biomass playing in meeting UK and EU targets for renewable energy.
Energy and Climate Change Minister, Lord Hunt said: "As we approach Copenhagen we need to encourage business to invest in renewable energy. We have a target to get 15 per cent 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."
The latest biomass funding round, however, comes as new independent research shows that supply chain problems threaten to disrupt UK biomass plans.
The new Verdantix research, which focused on large-scale biomass energy plants, claims the biomass industry is going to face critical supply chain issues will block planned investments because the UK biomass supply will only meet five to 10 per cent of projected demand by 2014. This means power generators will import millions of tonnes of biomass supplies from abroad leading to security risks.
The Government says that, as with previous rounds of the Bio-Energy Infrastructure Scheme, the objectives of grants are to increase renewable energy generation and reduce greenhouse gas emissions, while contributing to sustainable land management.
Biomass energy reduces carbon emissions because the carbon dioxide emitted as the biomass is burnt has already been offset by the carbon dioxide the crop absorbed as it grew, while fossil fuels release carbon dioxide that has been locked away for millions of years.
The scheme is restricted to projects based in England and grants will only be available for projects which complete by March 31 2011 with the deadline for receipt of applications being the February 262010.
DECC said it was also preparing for Round Six of the separate Bio-Energy Capital Grants Scheme, for which a launch announcement will be made in December.
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