The grant was dependent on the project gaining planning permission but the local council rejected the plans on the grounds that it is too big.
Developers Peninsula Power may appeal.
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UK biomass plant loses government grant
Plans for a 23 MW biomass-fired power plant at Winkleigh airfield in the UK’s north Devon have been thrown into doubt after the government withdrew an £11.5 million ($21.8 million) grant to part fund the development.
