English only business, local authorities and charities working with short rotation trees and crops like willow, poplar, alder, ash, hazel, lime, silver birch, sweet chestnut and sycamore.

And miscanthus, switch grass, reed canary grass, prairie cord grass, rye grass, straw or wood fuel from forestry, tree management and other energy crops at the Department for Energy and Climate Change’s (DECC) discretion.

However, wood coming from ‘secondary’ sources such as left over from construction will not be allowed to apply for the funding.

Energy and climate change minister, Lord Hunt said: “As we approach Copenhagen we need to encourage business to invest in renewable energy.

“We have a target to get 15% of all energy from renewable sources by 2020, and biomass can make a significant contribution.

“We funded 75 projects in round two of this scheme and we will continue to work to ensure that the supply chain is in place to create a thriving bio-energy market in England, which is good for the environment and good for business.

“As with previous rounds, the objectives of the scheme are to increase renewable energy generation and reduce greenhouse gas emissions, while contributing to sustainable land management.”

The scheme will provide grants to help create a supply chain that can be harvested, processes, stored and then supplied to biomass to heat, combined heat and power, and electricity end-users.

Grants will only be available for projects which complete by March 31 2011, the deadline for getting applications is February 26 next year.

Luke Walsh

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