As with previous rounds, the objectives of the scheme is to increase renewable energy generation and reduce greenhouse gas emissions, while contributing to sustainable land management.

The grant will be used for producing crops, such as woodfuel, miscanthus, short rotation coppices, and rye grass to develop fuel suitable for biomass.

The scheme also provides grants to help the development of the supply chain required to harvest, process, store and supply biomass to heat, combined heat and power, and electricity end-users. The scheme is restricted to projects based in England and is open to businesses, local authorities and charities.

Lord Hunt, the minister of energy and climate change, said: “As we approach Copenhagen we need to encourage business to invest in renewable energy. We have a target to get 15% of all energy from renewable sources by 2020, and biomass can make a significant contribution.

“We funded 75 projects in round two of this scheme and we will continue to work to ensure that the supply chain is in place to create a thriving bio-energy market in England, which is good for the environment and good for business.”

The grants will be available for projects which complete by March 31, 2011 and the deadline for receipt of applications is February 26, 2010. The scheme is administered by Tuv Nel on behalf of DECC.