A UK paper manufacturer has been awarded £3.15 million to support the development of energy plant in Cumbria.

Based in Burneside, near Kendal, James Cropper plc was selected to receive the cash as part of the Government’s Regional Growth Fund (RGF).

The £7 million ‘Steam Raising Plant’ will use a mixture of solid recovered fuel (SRF) produced from Cumbrian municipal waste and the company’s own paper-making residues. It is expected to help cut the firm’s energy costs, reduce carbon emissions and environmental taxes.

Mark Cropper (pictured), Chairman of the firm said: “Energy costs are rising and the global competitiveness of our business and other British energy intensive manufacturers is being further impaired by new UK carbon taxation policies. Delay and relief of such tax policies are vital to maintain competitive costs, however the transition to new forms of energy is more critical than ever so the RGF support could not be more welcome.”

The Regional Growth Fund is worth £2.4billion and allows businesses across England to apply for grants to fund projects that create economic growth and sustainable employment.