A restaurant, brewery and a hotel are among businesses across Scotland that will boost the use of renewable heating.

Grants totalling £1.1m from the Scottish Biomass Heat Scheme have been awarded to 16 projects to reduce energy costs, secure jobs in forestry and deliver annual savings of over 7,000 tonnes of carbon - equivalent to taking 3,000 cars off the roads.

Energy Minister Jim Mather said: "A viable renewable heat sector is vital to become a truly low carbon economy. We have the forestry resource and the skills in Scotland and there are many opportunities for businesses to use more biomass heating, especially in areas off the gas grid.

"These Biomass Heat Scheme grants will help a range of different businesses reduce emissions and cut costs, while securing green jobs. The use of more woodfuel will build sustainability into our economy.

"We are working with Forestry Commission Scotland to look at all aspects of supply to maximise the available resource and meet the rising demand for woodfuel. We announced earlier this year that 100 million trees would be planted in Scotland by 2015, providing more sustainable materials for biomass heating."

Daniel Borisewitz, Policy Manager Bioenergy and Heat at Scottish Renewables, said: "Since 2008, the Scottish Biomass Heat Scheme has been instrumental in the development of the renewable heating solutions throughout the country. This latest round of funding further demonstrates the Government’s strong commitment to the sector and will provide the necessary upfront capital to develop viable projects in the interim period before the launch of the Renewable Heat Incentive."

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The successful schemes to benefit from funding are:

* Angus Biofuels - Hillcrest Head Office, Dundee - 100,000 pounds;

* Angus Biofuels - Lyon Crescent Student Housing, Bridge of Allan - 164,500 pounds;

* Black Isle Brewery - Black Isle Brewery, Munlochy - 54,470 pounds;

* County Fabrics - Wood Pellet Heating System, Crook of Devon, Kinross - 7,566 pounds;

* Coventry for Fencing - Auchterarder head office - 29,713 pounds;

* Coventry for Fencing - Carstairs showroom and warehouse - 34,306 pounds;

* Deeside Cuisine Ltd - The Cowshed Restaurant, Banchory - 22,613 pounds;

* Douglas and Angus Estates - Newmains District Heating Scheme, South Lanarkshire - 134,405 pounds;

* Eriska Enterprises Ltd - Eriska Hotel Biomass Project, Isle of Eriska - 37,612 pounds;

* John Gordon and Son Ltd - Biomass Boiler for Sawmill, Nairn - 182,473 pounds;

* John O'Groats Leisure Ltd - Caberfeidh House/Seaview Hotel Redevelopment, John O’Groats - 51,808 pounds;

* Highland Grain Ltd - Grain drying using low grade barley and barley dust fuel, Glaikmore, Inverness - 23,750 pounds;

* Highland Wood Energy Ltd (HWE) - HWE ESCO 1, Highland - 100,000 pounds;

* Highland Wood Energy Ltd (HWE) - HWE ESCO 2, Highland - 51,575 pounds;

* Oil Technics Ltd - Oil Technics 2010 Extension Build, Gourdon, Aberdeenshire - 18,537 pounds;

* R and R Construction - Barochan Estate District Heating Scheme, Houston, Renfrewshire - 100,000 pounds.

The Scheme is managed in partnership between Scottish Government and Forestry Commission Scotland and is targeted at businesses, specifically small and medium sized enterprises. The scheme also encourages the development of district heating demonstrators from private developers. The maximum grant available is 100,000 pounds, although additional support for district heating projects may be considered on a case-by-case basis.

(GK)