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More than £70,000 has been offered to farms and forestry businesses in North East England in the opening phase of a project to build biomass supply chains.
The cash has been awarded to small rural businesses in the first funding round of the £1.2m project, which is aimed at increasing the region’s capacity to supply wood for low-carbon heat and power markets.
Grants have been offered to five businesses for a range of activities - from buying harvesting and transport equipment, to building a weatherproof store for woodchip.
Contract forester Richard Makepeace from Hexham applied for support to buy equipment including a thinning harvester and firewood processor, so that he can expand and develop his business further into biomass and firewood markets.
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Richard – who co-manages forests on the Chipchase and Minsteracres estates - already supplies domestic customers with firewood across the local area, from Gilsland to Shotley Bridge, and is hoping to double his firewood production within three years.
“I’m delighted that my bid was successful,” he said. “Our new firewood processor makes the whole process so much quicker and easier – what would’ve taken three of us a full day using manual chopping techniques can now be done by one of us in just a few hours, so it will make a huge difference to the business.
“The firewood market is strong and we’re now in a better position to be able to meet demand.”
Part of the North East’s investment from the Rural Development Programme for England, the biomass project is being run by Rural Development Initiatives Ltd, via Northwoods.
Project Officer Jennifer Hewitson said: “We’re really pleased with the range of applications submitted in the first round and this high level of interest is evidence of the growth in the biomass sector in the North East.
“Improving supply chains will allow the industry to pick up momentum, making sure that current and future demand for biomass products can be met by local businesses.
“I very much look forward to working with more businesses in the future funding rounds.”
Decisions are currently being made on a second round of applications and Northwoods is calling for other rural businesses interested in the project to contact them ahead of further funding rounds throughout 2009. The deadline to be considered for the next round is on 17th February, 2009.
The use of biomass – solid plant or animal material – to generate heat and electricity is recognised by the Government as a technology which can deliver immediate carbon and cost savings for homes and businesses. The biomass sector is small but growing in North East England, with a recent report suggesting it has the potential to be contributing more than £75m a year to the regional economy by 2015.
However, farms and forestry businesses in the region wanting to expand into biomass are often small or micro enterprises, with limited resources to invest in the training and equipment needed.
This project is investing in facilities and systems for harvesting, processing, storage and distribution; work on biomass fuels such as those from forestry, forestry and timber co-products, and short rotation coppice; training for staff; and work to help more businesses meet industry quality standards.
It is part of the North East’s investment from the Rural Development Programme for England (RDPE), which is jointly funded by the European Union and Defra and managed in the region by One North East, Natural England and the Forestry Commission.
One North East’s rural board member, Ian Brown, said: “This growing sector is an area of opportunity for farms and forestry businesses, and we want to strengthen our fledgling biomass supply chains so that they can meet demand as it increases.
“This also shows how RDPE can help rural businesses access finance for growth at a particularly tough time for the economy.”
Businesses wanting more information on the RDPE biomass project can contact Jennifer Hewitson at RDI Northwoods on 01670 790444 or by emailing Jennifer@northwoods.org.uk.
For more information on Richard’s firewood supply, contact richardslogs@aol.com
The aim of the Rural Development Programme for England 2007-2013 is to deliver targeted support to land-based businesses and rural communities.
The RDPE investment being managed by One North East combines larger projects to help many businesses in different sectors of the rural economy - including bioenergy and land-based skills, and projects adding value to agricultural and forestry products - with smaller investments to help individual businesses to start-up, grow or diversify, and support to develop more sustainable rural communities. Rural community partnerships are shaping how at least 25% of the funding is invested themselves, using the LEADER approach.
For more information on RDPE in North East England, visit: www.rdpenortheast.co.uk
For more information on RDPE, visit:
http://ec.europa.eu/agriculture/rurdev/index_en.htm
http://www.defra.gov.uk/rural/rdpe/index.htm
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For more information, contact Claire Mason (press office) on 0191 2296429 or 07765220755, or email Claire.mason@onenortheast.co.uk
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