Biomass Grants

The use of biomass is one way of combating climate change. To promote interest in biomass, and encourage projects that employ it to generate energy, the government offers a number of related grant schemes.

Biomass: What is it?

Biomass is organic matter. It comes from living organisms - or organisms that have recently died. Biomass for fuel usually derives from plants, but it may also originate from vegetable and animal materials.

Carbon Dioxide and Sustainable Energy

All organic matter absorbs carbon dioxide (CO2). When the organic matter breaks down, CO2 and methane enter the atmosphere. Burning organic matter also has the same effect. Organic matter is the source of common fuels such as gas, oil and coal. But this matter is millions of years old. It therefore absorbed CO2 from the earth's atmosphere long before humans appeared.

When gas, oil and coal burn, they release CO2 into the air. In other words, they add to the amount of CO2 in the atmosphere by recycling the carbon that the original organic matter absorbed millions of years before. This process creates an imbalance in the earth's CO2 and contributes to global warming.

Biomass fuel, when burned and converted into energy, also creates CO2. But the difference between biomass fuel and fossil fuels such as gas, oil and coal is time. Biomass removes CO2 from the air when it grows, and returns it soon afterwards when it burns. The result is no increase in CO2 levels in the atmosphere. If properly managed, biomass is a sustainable energy source.

Biomass Sources

The five sources of most biomass are:

• Energy crops such as wheat
• Virgin wood
• Residual agricultural products
• Industrial waste and products
• Food waste

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Four Grant Categories

The environmental benefits of biomass have led to various grant-making schemes. These appear in one of three categories:

1. research and development
2. installation
3. biomass fuel production

A number of organisations also give free advice and consultancy. These bodies include the Energy Saving Trust and the Scottish Energy Efficiency Office.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Research and Development

Businesses and research institutions can apply for grants from the Carbon Trust Applied Research Programme. The Programme supports applications that aim to develop carbon reduction technology and make it commercially viable. The Carbon Trust's research grants can meet up to 60% of a project's costs. Availability varies, however, according to UK region. It's therefore important for applicants to make grant enquiries with the Carbon Trust Customer Centre in advance. The maximum amount of a grant is £500,000.

The European Union also has grants for research into carbon technology. The initiative is part of the EU's Seventh Framework Programme known as FP7. The total FP7 budget is more than 50 billion euros. Energy related projects attract a lot of this funding, including those related to renewable energy. Businesses, the public sector and not-for-profit organisations can apply for FP7 help.

Installation

A wide range of grants exist for the installation of biomass technology. Some grants apply to specific sectors; others are available to most commercial and not-for-profit organisations. In some instances, private individuals can even apply for money. It's wise to speak directly to a grant-making body to see who is prepared to help.

The Community Sustainable Energy Programme gives money to organisations based in the community. The grants fund studies into the pursuit of biomass projects. The Programme also provides money for the installation of equipment that uses biomass energy. Not-for-profit groups and community organisations can approach the energy supplier EON for grants to install biomass schemes. The grants are worth up to £20,000 each.

Forestry Micro-Enterprise Grants start at £2,500 and go up to £25,000. Businesses can apply for the money to help buy the equipment for energy systems that burn wood.

The Rural Development Programme is an EU-funded scheme to improve rural areas. Money from the scheme can pay for the installation of biomass boilers.

Biomass Fuel Production

The Energy Crops Scheme gives landowners grants to plant energy crops. The grants meet half of all eligible costs. Forestry Commission grants encourage the use of wood as a biomass fuel. The grants aim to improve the management of existing forest areas, and boost the development of new woodlands.

The Rural Payments Agency manages an EU support mechanism. Landowners who grow energy crops on non-set-aside land can apply for grants. These come under the Energy Aid Payments Scheme.

The Waste and Resources Action Programme (WRAP) offers capital grants to small and medium-sized businesses. Applicants can submit grant requests for projects that turn materials such as food waste into energy.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Grant Eligibility Finder lets you tell us what you need funding for and we will match you with the types of UK grant most likely to accept your application. Try it now →