Farming

Bio-energy (solid fuels)

Biomass energy sources such as energy crops and forestry woodfuel are carbon neutral over their life cycle and have the potential to make a significant contribution to renewable energy and climate change targets. Bio-energy also has the potential to create and sustain jobs in rural areas.

The Energy White Paper said that biomass may become one of the largest contributors to the renewables generation mix aimed at meeting the UK's target of 20% of electricity produced from renewables by 2020.

In July 2006, the Government published the Energy Review. While not given special focus in the Review, biomass is seen as a key component of the general mix of renewables and will make an important contribution, particularly as a source of distributed energy.

The Review's actions on biomass and renewable heat build on the Climate Change Programme Review, the Microgeneration Strategy and the Government's Response to the Biomass Task Force Report, which were published earlier in 2006.

Support available

For the crops
A field of miscanthus

In England, the Energy Crops Scheme provides grants for establishing short rotation coppice and miscanthus under the new Rural Development Programme England (RDPE), which will run from 2007-2013. The operating details are subject to EU approval of the RDPE as a whole (expected later this year), and may also be reviewed during the lifetime of the scheme. It is currently planned to offer the following grants:

  • £1,000 per hectare for short rotation coppice (willow and poplar on a 3-5 year rotation and ash, alder, hazel, silver birch, sycamore, sweet chestnut and lime on a 8-15 year rotation) (This figure could be lowered following ongoing discussions with the European Commission)
  • £800 per hectare for miscanthus

Farmers can also receive the Single Payment for energy crops grown on set-aside. An annual energy aid payment of up to 45 euros per hectare is also available for growing energy crops under contract on non-set aside land. More detailed information can be found on the Rural Payments Agency website under Energy Aid Payment.


For the infrastructure
Harvesting willow short rotation coppice

The Bio-energy Infrastructure Scheme helps develop the supply chains required to harvest, store, process and supply energy crops and woodfuel to energy end-users.


For the end users
ARBRE - woodchip burning power station

The £66 million Bio-energy Capital Grant Scheme (now closed) allocated grants to project developers and organisations investing in heat and/or electricity generating projects fuelled by energy crops and other biomass feedstocks. The scheme has created new bio-energy markets.

A new round of the Bio-energy Capital Grants Scheme will be launched on 29 December 2006. The five year scheme will be worth £10-15m in England over the two financial years to March 2008. It will support the installation of biomass-fuelled heat and combined heat and power projects in the industrial, commercial and community sectors.

The Renewables Obligation places an obligation on all licensed electricity suppliers in England and Wales to source a growing percentage of their total sales from eligible renewable sources. This will create a substantial demand for renewables.

Generators can be awarded Renewable Obligation Certificates (ROCs) for co-firing energy crops with fossil fuel in existing power stations under the Renewables Obligation. As announced in the Energy Review, the Government will consult on interim changes to the rules to allow the co-firing of energy crops outside the existing limits on co-firing.

The UK-wide Community Energy Programme (now closed for applications) has provided £50m to promote community heating through grants to install new schemes and refurbish obsolete infrastructure and equipment, primarily using combined heat and power technology.

The BERR's UK-wide Low Carbon Buildings Programme started on 1 April 2006 and supersedes the previous Clear Skies Initiative and Solar PV programmes.

The new scheme provides grants for microgeneration technologies for householders, community organisations, schools, the public sector and businesses. Microgeneration is the stand-alone generation of low carbon heat and/or electricity. A number of renewable technologies are supported, including biomass-fuelled stoves for space heating, central heating and hot water systems, Renewable CHP and MicroCHP.

A new support scheme for biomass heat in the industrial, commercial and community sectors will be introduced in 2007. The scheme will be worth at least £10-15m in England over the first two years and will run for a total of five years.

Biomass as a Renewable Energy Source

The Royal Commission on Environmental Pollution's report on Biomass as a Renewable Energy Source (11 May 2004).

The Government's response (PDF 100KB) to the report (15 October 2004).

Opportunities and optimum sitings for energy crops

In response to the Biomass Task Force report the Government committed Defra to produce a set of maps to provide guidance on opportunities and optimum sitings for energy crops. These maps were produced in conjunction with representatives from Natural England, Forestry Commission, English Heritage, Environment Agency, Government Offices and the Rural Development Agencies.


Biomass Action Plan

In December 2005 the European Commission published a Biomass Action Plan. This sets out measures to increase the development of biomass energy from wood, wastes and agricultural crops by creating market-based incentives to its use and removing barriers to the development of the market.

Accompanying the Action Plan, the Commission also published an Impact Assessment and an EU Strategy for Biofuels.


Short Rotation Forestry

Defra and the Forestry commission have published a joint review of the potential impacts of short-rotation forestry as a source of renewable fuel for heat and power generation in Great Britain.

Short-rotation forestry (SRF) is the practice of cultivating fast-growing trees that reach their economically optimum size between eight and 20 years old. When felled, SRF trees are replaced by new planting or, more usually, allowed to regenerate from the stumps as coppice.

The two departments commissioned the review of possible environmental impacts of SRF as part of ongoing investigations and development of the wider mix of contributions that forestry can make to climate change mitigation and sustainable energy production.

The report can be downloaded from the Forestry Commission website where you will also find more information about SRF.

Renewable heat

In response to calls for the establishment of a renewable heat obligation during the passage of the Energy Act, the Government gave a commitment to undertake an analysis of the scope and case for promoting heat from renewable sources.

In December 2004, DTI and Defra commissioned Future Energy Solutions from AEA Technology to look more carefully at the renewable heat and CHP heat market and likely carbon savings. Their report was published in September 2005:

The Government has given a commitment to carry out a comprehensive analysis of potential support mechanisms for renewable heat, including assessment of a Renewable Heat Obligation, by April 2007. This analysis will provide the information needed to assess whether a workable long-term mechanism exists or could be constructed.

Transport biofuels (liquid fuels)

Oil Seed Rape

In substitution for mineral transport fuels, liquid biofuels can contribute to the reduction of greenhouse gas emissions. The growing of biofuel crops, such as oilseed rape, sugar beet and cereals offers an opportunity for farmers to diversify.

Media coverage of biofuels often presents  polarised views on the costs and benefits that biofuels can offer. On one hand, some have heralded biofuels as the green solution to replacing our dwindling oil reserves, both saving the planet by reducing greenhouse gas emissions and supporting fuel security and diversity of supply.  But other coverage has called these benefits into question, with some reports linking biofuels with pushing up food prices, causing deforestation, destruction of peat bogs and other negative impacts on biodiversity. Biofuels - risk and opportunities sets out many of the key issues in the context of current Government policy.

Further information about biofuels is available at the National Non-Food Crops Centre. The NNFCC is the UK's National Centre for renewable materials and technologies, and provides independent advice and information to industry, Government and the general public. Established in 2003, the NNFCC helps to build supply chains for plant-derived renewable materials so that good ideas become products you can buy

The 2003 Energy White Paper said that alongside renewably-produced hydrogen, fuels made from biomass represent an important potential route for achieving the goal of zero-carbon transport, creating new opportunities for agriculture in the UK as well as globally.

In 2003, the House of Commons' Environment, Food and Rural Affairs (EFRA) Select Committee undertook an inquiry into the use of crops for the production of transport biofuels. The Committee's report was published on 6 November 2003. The Government's response to the report was published on 27 January 2004.

The EU Biofuels Directive on the promotion of the use of biofuels or other renewable fuels for transport (2003/30/EC) requires the UK and other Member States to set their own indicative targets for the use of biofuels and other renewable fuels. The Commission’s reference targets are 2 percent  use by 2005 and 5.75 percent use by 2010. In December 2004, the UK set a target of 0.3 percent use of biofuels by 2005. The Directive does not require the target for 2010 to be set until 2007.

In December 2005, the European Commission published a Biomass Action Plan. This sets out measures to increase the development of bio-energy, including transport biofuels, by creating market-based incentives to its use and removing barriers to the development of the market.

On 23 January 2008, the European Commission published its proposals for a Renewable Energy Directive. The draft Directive includes a minimum target of 10% renewable fuels in transport by 2020, subject to the biofuels being sustainable.

Support available

Budget 2002 introduced a 20 pence per litre (ppl) cut in the duty rate for biodiesel compared to ultra-low sulphur diesel. This came into effect on 26 July 2002.

Budget 2003 announced a 20 ppl reduction in the duty rate for bioethanol compared to ultra-low sulphur petrol with effect from 1 January 2005.

Further support was announced in Budget 2004 with a commitment to consider d the potential for using fuel duty incentives to support the direct refining of vegetable oils at oil refineries; and to consider the application of enhanced capital allowances (ECAs) to biofuel processing plants.

In November 2005, the Government announced that a Renewable Transport Fuel Obligation will be introduced. This will require the major oil companies and importers to ensure that a growing proportion of their fuel sales are from a renewable source. It is anticipated that the Obligation will come into force in April 2008. The level of the obligation will be 2.5% by 2008, 3.75% by 2009 and 5% by 2010.

As part of the Obligation, the Government proposes to develop an assurance scheme. Obligated companies would be required to report on the level of carbon savings achieved and on the sustainability of their supplies.

Farmers can receive the Single Payment for biofuel crops grown on set-aside. An annual aid payment of 45 euros per hectare is available for growing biofuel crops on non set-aside land. More detailed information can be found on the Rural Payments Agencywebsite under Energy Aid Payment.

Biomass Study Task Force

In 2004, the Government commissioned a year-long independent Biomass Task Force, led by Sir Ben Gill, to identify the barriers to developing biomass heat and electricity and to recommend ways to overcome the problems. They published the Biomass Task Force Report in October 2005.

In April 2006, the Government published its response to the Task Force's report. This response accepts that energy from crops, trees and waste can make a strong contribution to reducing greenhouse gas emissions and sets out 12 key initiatives and over 60 associated actions to make this happen.


Biomass Energy Centre

One of the key points in the Government's response to the Biomass Task Force Report was the announcement of the Forestry Commission's new Biomass Energy Centre as a major new hub for bio-energy advice and best practice for farmers, industry and the public. The site gives an overview of the bio-energy sector and signposts users to the most appropriate sources of more detailed information. It is still under development and additional information will be added.


Research, links and other information

An online compendium of completed and ongoing research is available. In addition, specific research reports are available on this site.

Further information is available on our Help page about downloading or reading Adobe Acrobat PDF documents.

Page last modified: 14 April 2008

Department for Environment, Food and Rural Affairs