Irish Energy Minister Eamon Ryan has announced a new renewable energy grant scheme. From today, businesses, schools and hospitals can receive grants for the installation of biomass-fuelled and anaerobic digestion Combined Heat and Power Units (CHP).

The scheme is set to encourage industry and commercial users to generate their own heat.

CHP units generated both heat and electricity in a single process on-site. By combining the heat and electricity processes, CHP saves up 25% of energy from conventional separate production. It is, therefore, a much more efficient way of meeting heat and energy needs.

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Out of the €11m allocated for the CHP grants, we expect take up of the biomass element to be in the order of €8m. In heating terms alone, projects under this grant scheme will displace the equivalent of 36 million litres of heating oil and reduce carbon emissions by 100,000 tonnes every year.

The Minister also announced a new feed-in-tariff or guaranteed price for the production of electricity from these units. Suppliers can apply to the Department to receive a guaranteed price of 120 per MegaWatt hour.

Speaking while visiting a CHP unit at the Guinness brewery at St. James' Gate, Minister Ryan said: "We can create energy from wood chippings, from animal waste and crops and we can do this in a very effective way. These biomass CHP units will save businesses up to a quarter of their energy costs.

"Energy bills are a major part of overall expenditure in business. With this new grant and price support scheme, business will benefit from drastic reduction in their heating costs. I would encourage schools, hospitals and businesses to generate their own electricity on site using this technology."

(JM)