British Gas New Energy has acquired a stake in Econergy.

British Gas New Energy, a division within Centrica plc, has acquired a 19% stake in Econergy Ltd for £1 million.

Econergy is a leading biomass boiler and heating solutions specialist in the UK. It uses biomass – an organic non-fossil fuel material such as wood chip or pellets – to produce renewable heat and electricity. Its turnover for year ending June 2008 was £5 million.

The acquisition supports the government’s target of reaching 15% of total energy from renewable sources by 2020. According to a government report in June 2008, UK Renewable Energy Strategy Consultation, renewable heat currently accounts for less than 1% in the market today, however could reach a level of 14%, while biomass could represent 40-80% of renewable heat.

Gearóid Lane, Managing Director of British Gas New Energy, said: “This investment is another step forward in our development of a broad range of renewable, energy efficient and low carbon technologies that we can offer our customers, helping them to use less and use cleaner energy.”

Unlike other forms of renewable energy, such as wind and solar power, biomass is not weather dependent so can provide a reliable and continuous supply of power. It is also, debatably, the most cost-effective form of renewable energy, which is good news for customers looking to reduce their energy costs.

British Gas New Energy was launched in April 2007 and is the UK’s largest provider of energy-efficient products, such as loft and cavity wall insulation.