A new farmer-led co-operative, Pembrokeshire Bio Energy Ltd (PBE), has been launched to produce, market and supply biofuels in the county.

Initially the co-operative will focus on the supply of wood chips for automated heating of buildings such as hotels, swimming pools and large detached properties.

Up to 50% Objective One grant funding is now available to install biomass boilers.

Farmer Paul Ratcliffe, chair of the steering group, has established a number of trial plots of miscanthus, willow coppice and reed canary grass, all of which are already being used as fuel crops in other parts of the UK.

Feasibility studies commissioned by PBE have concluded that miscanthus, in particular, has excellent potential in Pembrokeshire.

Paul said: "We have spent a year setting up Pembrokeshire Bio Energy Ltd and believe energy crops will have a major long term future.

The new National Assembly building in Cardiff will be heated by wood chips. Compared to fossil fuels, energy crops have environmental benefits of being carbon dioxide neutral and providing protected habitats for wildlife. They also provide a way of supporting farmers and woodland owners and keep money in the local economy.

"PBE is a farmer-owned co-operative and new members are welcome."

A broad cross-section of Pembrokeshire-based organisations have worked together to set up PBE, including the South and West Wales Machinery Ring, FUW, NFU, Young Farmers, PLANED and the West Wales ECO Centre, with additional support from Pembrokeshire County Council, the Pembrokeshire Coast National Park Sustainable Development Fund and the Wales Co-operative Centre.

Farmers, landowners or potential biomass users can find out more by talking to representatives of PBE at the South and West Wales Machinery Ring stand at this week's Pembrokeshire County Show, or phoning the renewable energy advice helpline at West Wales ECO Centre, on 01239 821909.