The Carbon Trust expects £12 million of funding to be offered, saving farmers and growers £4 million per year in energy costs. The loans are designed to pay for themselves through direct energy savings provided over one to four years. After the loan is repaid, farmers will make direct savings on their energy costs, as well as cutting the carbon footprint of what they produce.

 

The loans scheme is part of the Carbon Trust's Big Business Refit - a nationwide campaign encouraging British businesses to replace old, energy intensive equipment which wastes £3.3 billion a year. This new funding has been provided to help the farming sector to meet the carbon reduction aims laid out the Government's Low Carbon Transition Plan.

 

The money has been made available from a £100 million Carbon Trust fund ring-fenced by the Treasury until the end of March 2011. Loans of between £3,000 and £20,000 will be available on a first come, first served basis.

 

 

·             Milk cooling accounts for one third of the energy consumption of dairy farms. New systems cost £3,000, and save up to £1,000 / 6 tonnes of CO2 a year.

 

·             Upgrading heating and ventilation controls, in livestock farms, typically costs £3,000, and saves over £4,000 / 23 tonnes of CO2 a year.

 

·             Grain drying humidity controls, used in arable farming, typically costs £3,000, and saves around £1,500 / 10 tonnes of CO2 a year.