£1m to Boost Biomass Production

The money, secured by regional development agency One NorthEast through the Rural Development Programme for England, follows an announcement earlier this month that it is to put £1.35m behind beefing up the biofuels chain.

John Seymour, spokesman for North East Biofuels, a coalition of farmers, traders and processors, mainly involved in growing and processing plants for liquid oil production, said the news was “another step in the right direction”. But with just 25 growers in the region under contract to supply biomass to power stations, many issues still needed to be addressed, he said.

One NorthEast predicts that demand for locally grown biomass will increase from the 2,500t currently marketed each year to more than 12,000t over the next 12 months. It said the sector could grow to around £1.5m by 2013.

View the NE Business story by clicking here.

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