New UK Chancellor Rishi Sunak delivered his first budget on 11 March, outlining funding for several green initiatives.
One of the key announcements made in the budget was the extension of the Renewable Heat Incentive (RHI), a move welcomed by the campaign group Biomass Heat Works!.
The RHI scheme had been due to end in 2021, with many in the bioenergy sector wondering what, if anything, would take its place to ensure the UK moves away from fossil fuels.
Mark Lebus of Biomass Heat Works! and chair of the UK Pellet Council said: "This is positive news from the chancellor and a step in the right direction for both the biomass heat industry and the UK Government regarding delivering heat decarbonisation and net-zero policy.
"The announcement now provides a degree of clarity and certainty to protect and sustain 46,000 jobs and 700+ supply chain companies, as well as push on with new investment and renewable heat installation projects in the short term.
"£100 million funding to replace fossil fuel heating in homes and small, non-domestic buildings and an extension to the RHI post-2021, albeit for 12 months, is essential to address climate change issues whilst encouraging a continued switch to renewable energy.
"It will also play a key part in the supply chain process when creating new woodland areas so we're supportive of the budget announcement made today and very much welcome the opportunity to work closely with BEIS ministers to develop and deliver future policy."