UK biomass projects with combined heat and power (CHP) failed to win any contracts for difference (CFD) subsidies in the scheme’s first allocation round on 26 February — a bearish signal in an industry heavily reliant on government funding. The biomass industry is taking a “significant hit” in the UK because of the message coming from the government, the Renewable Energy Association (REA) said. “Why the government turns its back and strangles funding for biomass when it delivers affordability to consumers, is cost competitive and base-load technology, is baffling to many in the industry,” the association said.
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