Hundreds of companies are to be given grants to convert to renewable energy to heat their businesses under a new €22 million euro scheme announced today.
The Department of Communications, Marine and Natural Resources estimated the initiative would lead to a reduction of 160,000 tonnes of carbon dioxide gas being released every year.
Potentially, some 600 companies will benefit from the scheme, depending on the size of the conversion project.
The new grant aid scheme of up to has been set up to turn businesses towards commercial renewable heat technology.
Minister for Communications, Marine and Natural Resources Noel Dempsey said: "This scheme will allow companies and small businesses to obtain grants for the installation of wood chip and wood pellet boilers in large buildings and commercial premises."
The Commercial Bioheat Scheme will provide grant aid of up to 30 per cent of the overall cost of the project.
It is part of a multi-annual finance package of €65 million for renewable energy, which includes grants for renewable heat, electricity and transport initiatives.
Mr Dempsey said: "When the programme is fully rolled out, approximately 600,000 Megawatt hours of wood fuel will be used annually which will displace in the region of 60 million litres of heating oil per year. This will result in a reduction of CO2 emissions of about 160,000 tonnes per year."
Information on the scheme is available from Sustainable Energy Ireland with the roll-out of the initiative over a five-year period from this week.
Mr Dempsey said the cost of equipment and installation costs have prevented many businesses from switching to renewable energy systems, which are low cost to run after the initial set-up.
"This scheme recognises the contribution that businesses want to make in reducing energy demand, and will provide concrete support for them to make the switch to low cost, low emission heating systems," he said.
"This scheme is also particularly relevant in the context of rising fossil fuel costs."
PA