Farmers, foresters and biomass producers can apply for up to £200,000 each under a new round of grants opened by Environment Minister Phil Woolas.

The Bio-energy Infrastructure Scheme will support the biomass industry in England by helping those supplying biomass fuel for use in heat and electricity generation.

Mr Woolas said: "We have to rethink our energy mix. We know biomass has the potential to considerably reduce our dependence on fossil fuels and cut our carbon emissions. UK producers are setting the standard and have shown production can be sustainable and our investment will support their commitment to this emerging industry.

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"The fund will inject cash at the point of production. By investing in the biomass industry we are helping farmers, foresters and other producers to diversify and become part of the environmental industry sector which is currently worth more than £25bn and growing."

All projects must be based in England and must supply the biomass to end-users in Great Britain. Grants are available for up to a maximum of £200,000 per producer group or business.

(CD/JM)