Moving to low-carbon heat sources is crucial in the battle against climate change with nearly half of the UK’s emissions coming from heating.

Today more government money becomes available for industry, businesses and community organisations to help towards the cost of buying and installing biomass-fuelled heating and combined heat and power projects, including anaerobic digesters, in England.

Around £12 million in funding is available in the latest round of the Bio-energy Capital Grants scheme. Grants of up to £500,000 are on offer to pay for up to 40% of the difference in cost between a biomass boiler and its fossil fuel alternative.

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Launching Round 5 of the Bio-Energy Capital Grants Scheme, Sustainable Development and Energy Innovation Minister, Lord Hunt of Kings Heath, said: "Nearly half of the UK's carbon emissions comes from heating, so it’s essential to change how we heat businesses, hospitals, schools and community buildings. The Government's Bio-energy Capital Grant Scheme makes installing boilers run on biomass much more affordable.

"By using biomass fuel to generate their own energy instead of coal, oil or gas, organisations can reduce their carbon impact and take an active role in the fight against climate change.

"We've also recently introduced new legislation which will mean people who do generate their own heat or electricity will be financially rewarded for doing so."

So far, the Marsden Farms project in Gloucestershire received a grant payment of £87,890 to replace eight fossil fuel boilers with two biomass versions of heat rural office units and accommodation.

The project has already seen a 23% reduction in heating bills and estimates saving 205 tonnes of CO2.

(JM)