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116<br />
Evaluation of Opportunities for Converting Indigenous UK Wastes <strong>to</strong> Wastes and Energy<br />
AEA/ED45551/Issue 1<br />
Bio-energy Capital Grants Scheme<br />
The Bioenergy Capital Grants Scheme (BEGS) was launched in 2002. Four funding rounds have been<br />
held over <strong>the</strong> past five years <strong>to</strong> support various aspects of <strong>the</strong> Bioenergy sec<strong>to</strong>r. DTI and <strong>the</strong> Lottery<br />
funded <strong>the</strong> first two rounds and Defra <strong>the</strong> third and fourth. The fifth round funded <strong>by</strong> DECC was launched<br />
in Dec 2008 and <strong>the</strong> successful applicants have just been announced.<br />
The objectives are focused on building <strong>the</strong> basis of an industry, and providing a learning experience. This<br />
has directed <strong>the</strong> scheme <strong>to</strong>wards a broad portfolio of projects that captures a wide range of technologies<br />
and companies.<br />
The scheme has produced <strong>the</strong> following highlights:<br />
• Two major power plant projects in operation at Lockerbie and Middlesbrough see Box 4.<br />
• Several electricity/CHP installations in operation located in South Wales, Nor<strong>the</strong>rn Ireland, and<br />
Staffordshire including anaerobic digestion.<br />
• 1 x 5.4 MWe industrial CHP at a brewery. Replications are al<strong>read</strong>y being planned across <strong>the</strong><br />
sec<strong>to</strong>r.<br />
• 1 x 1.4 MWe gasification CHP <strong>to</strong> supply a University Campus.<br />
• A core industry of suppliers installing biomass boilers with over 400 installations so far.<br />
• Parallel generation of local wood fuel suppliers extracting local woodlands and resources. Each<br />
region now has several suppliers.<br />
• Nine projects with local authorities that demonstrate public sec<strong>to</strong>r leadership in developing carbon<br />
abatement strategies. For example, Nottingham is converting all <strong>the</strong>ir schools <strong>to</strong> wood heating.<br />
• Started UK pellet fuel industry <strong>by</strong> supporting <strong>the</strong> Balcas sawmill CHP plant in Nor<strong>the</strong>rn Ireland,<br />
producing 40k <strong>to</strong>nnes pellets per annum. Balcas are now replicating this, at double <strong>the</strong> size, in<br />
Scotland based on <strong>the</strong> experience.<br />
• Initiated a new industry in recovered wood fuel in <strong>the</strong> North East and North West <strong>by</strong> providing a<br />
market for over 200k <strong>to</strong>nnes per annum. E.ON and o<strong>the</strong>rs are now planning fur<strong>the</strong>r installations<br />
<strong>to</strong> use this resource.<br />
• Average cost of carbon abatement: £132 of Government funding per annual <strong>to</strong>nne abated in later<br />
rounds.