An €11m grants package was launched today to encourage industry and commercial users to generate their own electricity and heat.
Natural resources minister Noel Dempsey confirmed the new Combined Heat and Power (CHP) programme would aid businesses in building small-scale fossil-fired and biomass systems.
The biomass systems developed under the programme will displace the equivalent of 36 million litres of heating oil a year, and in conjunction with the recently launched bioheat programme would help contribute to savings of €100 million litres in total.
“This is a significant achievement,” Mr Dempsey said. “It paves the way for a new renewable electricity and heating sector in Ireland, which will dramatically reduce our dependence on imported, polluting fossil fuels.”
It is estimated the new scheme will achieve savings of 120,000 tonnes of carbon dioxide.
Under the programme, Sustainable Energy Ireland (SEI) will accept applications for the units.
The small-scale systems would generally suit hotels, leisure centres, small hospitals, offices and commercial and public buildings with a substantial heat requirement.
The CHP units simultaneously generate heat and electricity in a single process on site.
By combining the electricity generating and heat processes, the CHP units save around a quarter of the energy that would have been required to produce electricity in a conventional power station and heat the buildings separately.
There will be no limit on the size of installations which can be given grant aid if they are run on biomass products.
The programme, which will run over five years, is part of a €65m scheme including a bioheat grants programme and a greener homes domestic grants scheme.