DEFRA And DECC Announce New Ten Million Pound Fund

29th November 2013

DEFRA and DECC have announced the launch of a new £10million fund, aimed at farmers and landowners. The On-Farm AD Fund is for farmers who can fulfil the following requirements:

  • Have access to slurries or manures

  • Suitable land for spreading digestate (liquid waste from AD system)

  • Interested in constructing an ‘on-farm’ Anaerobic Digester plant up to 250kW

  • A use for hot water produced by the system eg dairy, holiday lets

Anaerobic digester technology has been likened to a ‘cow’s stomach’ system, which breaks down the energy in food crops and other energy sources, to produce methane gas, which is then converted into electricity and heat.

The main barriers to developing anaerobic digestion (AD) on farms are:

  • Access to finance

  • Availability of reference sites for technologies and case studies

  • Demonstration of the benefits of AD

  • The potential high cost of technology

To help overcome these hurdles, the On-Farm AD fund has been developed to help farms access finance, provide case studies and demonstration information and provide support for farmers in England who want to use AD on their farm.

The fund is split into two parts:

  • The first part is a business plant grant up to £10,000 to investigate the environmental and economic potential of building an AD plant on the farm

  • The second part is a capital loan up to £400,000 (or a maximum of 50% of the project cost). This is available for AD plants producing up to 250kW of power.

The farmer will be eligible for the renewable energy Feed In Tariff (FIT) for the production of electricity and will also produce hot water for use on site.

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