Regional Development agency One NorthEast has welcomed the launch of the Bio-Energy Capital Grants Scheme.

The announcement was made last week by the Department for Environment, Food and Rural Affairs (Defra), who expect to allocate £4m to businesses in the industrial, commercial and community sector looking to install biomass boilers or engage in other renewable projects combining heat and power.

The grant will be administered by AEA Energy and Environment, part of AEA Technology plc, and the maximum single award is £100,000 per installation.

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One NorthEast has identified renewable energy as an important growth industry for the region over the next 10 years.

The Agency works with businesses across the region to be smarter in their use of energy, drive down fuel bills and reduce the impact of industry on the environment.

With schemes like the Energy Resource Efficiency (ERE) programme, which is run by industry experts who work with firms to understand their energy use and find ways to improve current systems, the North East is leading the way in developing renewable energy resources.

Ray Thompson, Energy & Environment Pillar Manager at One NorthEast said: "We are delighted with today's announcement as this grant will provide financial support to North East firms looking to install renewable alternatives to heating and powering their premises.

"Rising energy bills and responsibility for your carbon footprint are burning issues for businesses.

"This grant will provide additional assistance to firms looking to tackle these important concerns and will further complement a number of other projects we already have in the region."

(JM)