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A new green fuels initiative which could power up to 5,000 family cars per year was launched today.
The initiative, which is the first of its kind in the UK, is being piloted across the east coast of Scotland and will involve local farmers using biosolids as organic fertiliser in the growing of crops which can produce five million litres of biofuels each year.
The Minister also took the opportunity to announce that three projects encouraging the use of wood as a renewable energy source have become the first in Scotland to benefit from funding from the UK-wide Bio-energy Infrastructure Scheme, receiving over £380,000 in total.
Environment and Rural Development Minister Ross Finnie said:
"Biofuels are efficient, clean and green sources of energy. Their versatile nature means they can be used to produce heat and electricity on a large scale.
"The Scottish Executive is committed to reducing the impact of climate change. Initiatives such as the Bio-energy Infrastructure Scheme and the innovation of companies like Terra Eco Systems are helping us in achieving this goal."
The system, which will be managed by Terra Eco Systems in conjunction with Harlow Agricultural Merchants will see wheat or barley and oil seed rape will be grown at farms in the Lothians before being transported to Europe for conversion into bioethanol and biodiesel respectively.
One of the farmers involved in the Terra Eco Systems initiative is Douglas Morrison, who farms at Amisfield Mains Farm in Haddington who said:
"I am delighted to be involved in this initiative, which has a number of benefits for me as a farmer. From a financial perspective it is beneficial to have guaranteed income, however the fact that there is support for the greater use of environmental practices in crop production to increase the green credentials of UK produced biofuel is also very important."
The Bioenergy Infrastructure Scheme, funded by Defra and administered in Scotland by Forestry Commission Scotland, was set up to provide grants to farmers, foresters and businesses to help develop the supply chain required to harvest, store, process and supply energy crops and woodfuel to energy end-users.
The three successful projects that have been offered funding through the Bio-energy Infrastructure Scheme are:
The Scottish Biofuel Project, Fife: Offered £161,200 to purchase equipment to convert wood into pellets for use in co-firing power stations. Scottish Biofuel have received £161,200 to install a primary shredder and final grinder at a site in St Ninians, Fife, to convert wood into wood pellets for use in co-firing power stations and other biomass applications.
The South Scotland Forest Residue Utilisation Project, Dumfries: Offered £104,000 to help buy a machine to bale harvesting residues for supplying a wood fuel power generation plant. Forestry contractors, Pattinson and Moffat, have received £104,000 for the purchase of a baling machine to bale harvesting residues for supplying the E-ON power generation plant at Lockerbie, now under construction.
The Barcaldine Wood Fuel Supply Project, Argyll: Offered £119,000 to purchase equipment and construct a wood fuel processing area.
Tilhill have received £119,000 for the purchase of chipping and handling machinery and construction of a wood fuel processing and storage area to prepare wood chips to supply the proposed CHP (combined heat and power) plant at the Marine Research Centre at Barcaldine, Argyll.
The scheme is currently closed for new applications. Subject to approval by the European Commission, it intends to launch a second application round for the scheme during 2006-07. Further details will be announced shortly.
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