Biomass plant loses £11.5m grant

The power station was proposed for a former World War II airfield

The government has withdrawn an £11.5m grant to fund part of a renewable energy plant in north Devon.

Peninsula Power, a consortium of local businessmen, wanted to build the plant on nine acres (3.6 hectares) of a former airfield at Winkleigh.

Biomass is plant material that is burned, creating renewable energy.

The government has now withdrawn an offer to provide £11.5m towards the scheme because the project was refused planning permission in April.

Appeal decision

The plant was rejected by Torridge councillors on the grounds that it was too big.

The Department of Trade and Industry said in a statement: "The government is committed to the development of all types of renewable energy, including biomass and we agreed to back the ambitious project planned for Winkleigh with a substantial grant of £11.5m, subject to planning permission.

"As this hasn't been given we have now notified the company and the South West Regional Development Agency (SWRDA) that the offer of funding has been withdrawn."

Peninsula Power said it was now considering whether to press ahead with an appeal against the application.

'Blight the area'

Campaigners who opposed the plant on the edge of the village of Winkleigh have welcomed the government's decision.

The plant, which has a gross capacity of 27 megawatts, would be fuelled by a mixture of fast-growing crops, such as willow and miscanthus grass, as well as cellulosic fibre, created from household waste.

It would provide enough electricity for 23,000 homes.

However, residents against the plant claim the scheme would blight the area and is a waste of taxpayers' money.

The SWRDA has spent almost £589,000 on the project, with £412,000 being used to acquire the site.

SWRDA spokesman James Harper said the land could still be use to benefit the local economy.

He said: "We have a prime site that has been highlighted in the district plan for uses such as renewable energy, which is why this project started off in the first place.

"We have got to move forward now. We have a site we have invested in and we want to talk to the local community."