Round three of DEFRA's bio-energy capital grants scheme will end in March

The department for environment, food and rural affairs has opened the third round of the bio-energy capital grant scheme.

The new grant will support the installation of biomass-fuelled heat and combined heat and power projects in the industrial, commercial and community sectors, including local authorities and schools.

Closing date for all grant applications is 9 March.

There will be a minimum funding of £25,000 and a £1m maximum grant limit, although in exceptional cases a higher award would be considered. The scheme will run for five years.

AEA Energy and Environment will administer the bids on Defra’s behalf.

The government set up the £10-15m bio-energy capital grant scheme last spring as a response to the Biomass Task Force report. Round one and two of the scheme were funded by the DTI and the Big Lottery Fund.

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