Business and community organisations such as schools and hospitals can now apply for £4M of new funding to buy and install bio-energy systems.
Under the Bio-Energy Capital Grants scheme, grants of up to £500,000 are on offer to individual projects that want to install biomass boilers, CHP systems or anaerobic digesters. The sum on offer should be 40 per cent of the cost difference between a biomass boiler and its fossil fuel alternative.
Energy and climate change minister Lord Hunt said: As the world works towards a global deal on Copenhagen, back in Britain we are continuing to find greener ways to do business. We expect bio-energy to supply a third of our renewable energy by 2020 and these grants will help support that. By March 2011 we plan to have 200 additional boilers installed, generating 87MW of biomass heat and over 72,000 tonnes of annual carbon savings.
The biomass boiler or CHP plant must be fuelled by eligible biomass such as wood waste, food waste and wood chips in order to be eligible.
Already, the scheme has helped buy aNd install 458 biomass boilers in the public and private sector. Under the scheme Nottinghamshire County Council has installed boilers in over 50 schools and it helped to fund the 2MW biomass installation at Stansted Airport.