A FATAL blow could have been delivered to a renewable energy scheme which stirred huge controversy in North Devon, following the Government?s withdrawal of an £11.5m grant. Peninsula Power wanted to build a biomass power plant on the former airfield at Winkleigh, and had attracted the multi-million pound grant from the Department of Trade and Industry, because it met strict Government criteria for renewable energy projects. The Government this week withdrew the offer to assist the scheme, following its refusal of planning permission by Torridge District Council in April. In a statement, Peninsula Power said: ?A meeting will be held at the end of this week which will determine Peninsula Power?s strategy for its forthcoming planning appeal.? Campaigners who opposed the scheme when it was first announced have welcomed the decision. Winkleigh resident David Lausen said he was pleased the grant had now been withdrawn, and ideas were being developed for an alternative use for the site. ?We are certainly not against renewable energy. We would like to see that site become a demonstrator for micro generation. We had a micro generation demonstration day in Winkleigh in July, which was very successful and we would like to show how various technologies can work and do work, on a small scale.? He added: ?We do have alternative plans and have been discussing them with Government agencies.? Mr Lausen said though it had been ?very frustrating and stressful at times?, fighting the scheme had brought the communities of Winkleigh and the surrounding villages together. The South West RDA spent nearly £600,000 on the project, including acquiring the site, but says its reason for buying the land was not ?solely dependent? on planning approval for a biomass scheme. A SWRDA spokesman said: ?In the light of the DTI decision we will discuss alternative proposals with the local community and the planning authority through the MCTi (Market and Coastal Towns Initiative) process. ?It is too early in the day to make any firm decision but we will ensure whatever the land is used for will contribute towards the economy of Winkleigh and the surrounding area.? The spokesman said renewable energy was listed as one of the uses for the site in the local plan. The biomass plant proposed to take energy crops and create renewable energy using advanced gasification and turbine technology.