Irish Forestry Minister Tony Killeen has announced the commencement of the third phase of the Bioenergy Scheme.

The scheme was launched on a pilot basis in 2007 to provide establishment grants to farmers to plant willow and miscanthus over the period 2007 to 2009.

Announcing the third phase, Mr Killeen said "I am pleased to confirm that €2m is being made available in 2009 to support the planting of a further 1,800 hectares of miscanthus and willow.

"The scheme is now open for applications and interested farmers can apply for establishment grants of up to €1,450 per hectare to cover 50% of the costs of establishing these crops," said the TD.

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The closing date for submission of applications for pre-planting approval is 30 January 2009.

Minister Killeen reminded farmers that applications would be processed on a first come, first served basis, subject to meeting the scheme requirements and the availability of sufficient funding.

The Bioenergy Scheme operates under Council Regulation (EC) No 1782/2003, as amended, which authorises the payment of national aid to establish miscanthus and willow crops for Bioenergy purposes.

Miscanthus and willow are biomass crops and are grown to provide feedstock for use in the renewable energy market. Establishment grants are payments to cover part of the costs of establishment.

Eligible costs include ground preparation, fencing, vegetation control, the purchase of planting stock and planting.

(PR)