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Find information on financing anaerobic digestion projects.
Capital Grant Aid
Capital grant schemes are available (but are not vital) to support AD plant construction. Regional funding for AD projects is available through the Regional Development Agencies (RDAs). The conditions for receiving funding vary by region. To contact your Development Agency, follow the links below.
England, Scotland, Wales, Northern Ireland
Enhanced Capital Allowance
The Enhanced Capital Allowance Energy scheme provides businesses with enhanced tax relief for investments in equipment that meets published energy-saving criteria. With CHP, case by case Certification is needed to ensure support is provided for ‘good quality’ CHP. Certification is achieved using the CHP Quality Assurance programme (CHPQA). Renewables East provide a simple guide to CHPQA and ECA for biomass projects.
Bio-energy Capital Grants
The Bio-energy Capital Grants Scheme promotes the efficient use of biomass for energy, by stimulating the early deployment of biomass fuelled heat and biomass combined heat and power projects. It will do this by awarding capital grants towards the cost of equipment in complete installations.
It is aimed at businesses, organisations and charities in the commercial, industrial and community sectors that are considering investing in biomass-fuelled heat and/or combined heat and power projects, including anaerobic digestion. There is no minimum grant aid in any one application and the maximum is £500,000 per installation.
The scheme is funded by the Department for Energy and Climate Change.
Gate Fees
Organic residues from third parties can attract a gate fee. However, when creating a business plan it is important to remember the value of gate fees can fall significantly. See the Wastes page for more information and the Regulations page for more on the regulations behind waste handling.
Other Grant Aid and Support
WRAP provides funding on occasion, including capital grants. WRAP are currently administering a Food Waste Collection Fund until 2011 to support English local authorities on the separate collection of food waste. WRAP's Organics Funding Guide provides information on support for bio-energy and food waste processing projects.
Private equity finance may also be an option. To read more about what banks and financiers may be looking for, see page 70 of this report into the economics of AD by the Andersons Centre.
For information on incentives like the Renewables Obligation (RO) and Feed-in Tariffs, see the Incentives page.
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