TALLINN - For the first time, farmers will receive support from the Estonian Agricultural Registers and Information Board (PRIA). Aid will be available to companies who produce biofuels from their own biomass and use at least half of the fuel in their own establishment.
"I would especially recommend producing your own bioenergy to those whose energy needs are very large 's for example, farmer's markets and barns," said Mati Motte, development aid department manager in PRIA.
That investment aid should support diversifying production methods and raising competitiveness among agricultural establishments in the countryside. The use of bioenergy for heating, fuel and electricity is playing a role in developing a more efficient energy market by enlarging the importance of energy made from sustainable sources.
Producers of bioenergy culture times will get bigger shipping security for their raw materials. Farmers can also produce biomass on a field which is temporarily not in use then.
The support will be given for 40 to 60 percent of suitable investment expenses up to 4.69 million kroons (nearly 300,000 euros) for one application in the program period. That money can be used for processing biomass, construction, communications and roads used to produce bio energy, buying and installing electrical devices, buying necessary equipment for producing bioenergy, and so on.
Applications can be made until September 17, and PRIA will make the decision by January 2009. If there are more acceptable projects than money for them, PRIA makes a chart which lists the projects by criteria that are set by the ministry. Investment must be made within two years, and the aid will be paid after expense documents have been rendered and the investment object audited.
Seventy percent of bioenergy production investment aid will be financed by European Agricultural Fund for Rural Development and 25 percent by Estonia. This year, there is support money for 69.6 million kroons.