Bio-energy Capital Grants Scheme - Round 4
Support for biomass heat
A new round of the Bio-energy Capital Grants Scheme launched on 9 April 2008.
Aim of the scheme
The scheme supports the installation of biomass-fuelled heat and combined heat and power projects in the industrial, commercial and community sectors.
Geographical coverage
The installations must be in England.
Eligible technology
Capital grants will be awarded to support the installation of biomass-fuelled heat boilers and biomass-fuelled combined heat and power (CHP) equipment, including anaerobic digesters for heat-only or CHP.
Who can apply?
The scheme is open to the industrial, commercial and community sectors. This includes, but is not restricted to, public and private limited companies (Ltd and plc), sole traders, farmers, local authorities, hospitals, universities, schools, housing associations, charities etc.
Householders and individuals are not eligible.
Applications can only be made by the ultimate owner of the biomass boiler or CHP plant.
Grant rate
There will be a variable rate of up to 40% of the difference in cost of installing the biomass boiler or CHP plant compared to installing the fossil fuel alternative.
This is subject to a maximum single award of £100,000 per installation. Applications covering several installations can apply for up to £100,000 for each installation. There is no minimum award threshold.
Application window
The application window will run for 6 weeks, from 9 April 2008 to 20 May 2008.
How do I obtain full details of the scheme?
The scheme is administered on Defra's behalf by AEA Technology.
All enquiries should be addressed to biocapitalgrants@aeat.co.uk
- Guidance notes (PDF 400 KB) (amended version 8 May 2008)
- Application form for single small heat projects (Word 700 KB)
- Application form for large or multiple heat, and all CHP projects (Word 750 KB)
Frequently Asked Questions
1. Could you send me paper copies of the application forms?
Unfortunately not. The forms are designed to be completed electronically to ensure legibility. In addition, narrative text needs to be entered for a number of the questions and the electronic form will expand automatically to allow the space needed to give full answers.
2. Can we obtain funding from the Low Carbon Buildings Programme as well as the Bioenergy Capital Grants Scheme?
No, this is not possible.
3. Can NHS Foundation Trusts apply?
Yes
4. Does the scheme cover the costs of fuel preparation equipment such as chippers or pelleting plant?
No. We can only support costs associated with the energy generation plant.
5. Are the costs of installing district heating pipes eligible?
Only if the project is to replace a number of existing fossil fired boilers with a single biomass boiler. In this case you can include the pipework and the heat exchangers that replace the fossil boilers, but not the heating systems within the buildings they serve.
Future rounds of the scheme
Subject to funds being available, Defra hopes to run a further application round in Autumn 2008, and several rounds in 2009 and 2010. Details of these rounds will be announced in due course.
Background to the scheme
Funding for the five year biomass heat support scheme was announced in 2006 in the Climate Change Programme Review and in the Government response to the Biomass Task Force report. In order to provide continuity, the scheme is being run as a continuation of the existing Bio-energy Capital Grants Scheme. Rounds 1 and 2 of the scheme were funded by the Department for Business, Enterprise and Regulatory Reform (BERR) and the Big Lottery Fund. Round 3 was funded by Defra.
The Bio-energy Capital Grants Scheme is part of the UK Environmental Transformation Fund (ETF); a joint BERR/Defra fund to bring forward the demonstration and deployment of low carbon energy and energy efficiency technologies. Further information about the ETF is available from:
Page last modified: 8 May 2008