DEFRA launches £3m AD loan fund for English farms

News of £3m extra DEFRA support for on-farm anaerobic digestion (AD) is tempered by expected DECC subsidy cuts next year

 English farmers requiring capital for small anaerobic digestion (AD) plants will be able to access up to £400,000 of government finance from next year.

The £3m on-farm AD loan fund was unveiled by Environment Secretary Owen Paterson on 10 October. The DEFRA initiative will enable farms to bid for up to 50% of the capital cost of AD plants of 250 kilowatts generating capacity or less.

Loan seekers will be required to submit a business plan prior to applying. As a further helping hand, grants of up to £10,000 will be available to help farmers put together a business case for AD – and make sure this is the right economic and environmental solution for their farm slurries or manures.

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