Timber sector companies seeking to invest in wood-burning boilers to heat their factories have been given added incentive through a new £550m green equipment partnership between the Carbon Trust and Siemens.
And an imminent government announcement, possibly as early as tomorrow, on the proposed Renewable Heat Incentive (RHI) will set out details on how the RHI will pay companies for generating their own heat with biomass technology instead of burning traditional fuels.
The Carbon Trust/Siemens partnership will replace an existing Carbon Trust scheme which has provided interest-free loans for companies investing in green equipment.
Businesses will be able to apply for finance from April 1, with Siemens Financial Services providing the financial backing and the Carbon Trust using its expertise to assess the carbon, energy and cost savings of any application. The precise terms of loans are not yet clear.
“The new dedicated low carbon finance scheme is a first and will enable UK businesses to invest in cost-effective energy-efficiency equipment or other low carbon technologies, such as energy-efficient lighting and biomass heating,” the Carbon Trust said.
The partners will also launch a new commercial venture later this year offering procurement support to businesses wishing to buy energy-efficient equipment at scale from a network of accredited suppliers.
The proposed RHI recommends payments per kilowatt hour of heat produced.
For more information see next week’s biomass and wood energy special focus.
