In Denmark, government subsidies for the testing and installation of biomass-fired boilers were available for the period from 1995 until 2002. Each boiler type had to pass an official approval test to achieve subsidy. The combustion abilities of the boiler were optimized prior to the test. The main aim of this subsidy was to encourage the development of energy-efficient and environmentally friendly boilers. The scheme was therefore organized in such a way that the greatest subsidies were awarded for boilers with high efficiency and low emissions. This goal has in effect been achieved for batch-fired straw boilers, where the typical efficiency has been increased from about 75% in 1995 to about 87% in 2002. Similarly, the carbon monoxide emissions have been reduced from 5000 ppm (reference value 10% O-2) in 1995 to less than 1000 ppm in 2002. These improvements are mainly due to better insulation inside the combustion chamber, more efficient techniques for supplying air to the combustion process, improved cooling of the flue gas, and optimization of the electronic control unit for the air supply. (C) 2003 Elsevier Ltd. All rights reserved.