Bio-energy Infrastructure Scheme

The Bio-energy Infrastructure Scheme was launched on 15 October 2004. Defra administers the Scheme for England, Wales & Northern Ireland. The Forestry Commission administers it for Scotland. The Scheme provides grants to: - farmers and foresters to set up producer groups to supply eligible biomass to energy end-users (short rotation coppice producer groups in England are not eligible as these are funded under Defras Energy Crops Scheme). Grants are available towards administrative start-up costs, training costs and the purchase of specialist capital items (e.g. dryers, chippers, pelleters, specialised handling equipment, storage and hard standing etc). - businesses entering into the supply of biomass to energy end-users. Grants are available towards training costs and the purchase of specialist capital items. Eligible biomass is short rotation coppice (willow or poplar), miscanthus, switch grass, reed canary grass, prairie cord grass, rye grass, straw and woodfuel (from forestry, arboricultural tree management and primary processing such as sawmilling). The biomass must be used for heat, combined heat and power (CHP) or power generation end use. The first application round has closed. A total of £3.5m is being allocated and it is expected that around 30 projects will be funded across the UK. The maximum funding per applicant is £200,000. Subject to State aid approval, it is intended to launch a second application round during 2006-07.

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