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01/11/2011

Call For Biomass Rethink

Energy Minister Fergus Ewing will meet the UK Government's Minister for Energy and Climate Change Charles Hendry tomorrow, and host a meeting with bioenergy stakeholders.

He will urge Mr Hendry to follow the Scottish Government's lead and abandon subsidy for large-scale woody biomass in plants which produce electricity only.

Earlier this month the Scottish Government published a consultation which proposed removing all subsidy from large-scale woody biomass electricity plants.

The Scottish Government supports the deployment of woody biomass in heat-only or combined heat and power plants, particularly off gas-grid, on a small scale which maximises the use of heat and local supply chains.

But large-scale electricity-only biomass is inefficient and requires more wood than the UK can produce. Although current plans are to import wood, there is no guarantee biomass plant operators will look exclusively abroad for their wood, and the overseas supply may not be stable or secure.

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The current subsidy means biomass providers will be able to afford more than the current market rate for wood, and may push prices up, pricing out traditional wood industries such as sawmills, wood panel mills, furniture manufacturers and construction. This in turn puts hundreds of skilled rural jobs at risk.

Energy Minister Fergus Ewing said: "I have grave concerns about the UK Government's ambition for biomass electricity. Large-scale woody biomass used for electricity generation is much less efficient than smaller scale neighbourhood plants.

"Huge electricity-only biomass plants require vast quantities of wood - far more than the UK can provide. Even if every stick of wood grown commercially in the UK went to biomass, it would supply less than a third of the fuel we will require by 2020 if the UK Government's plan for biomass goes ahead.

"Large scale electricity-only biomass will make us reliant on overseas timber markets for our energy. Both oil and gas prices have shown us the importance of a secure, local supply, and if we rely too heavily on imported timber there is a risk of energy security problems in the future.

"Extensive use of large scale biomass for electricity only is likely to push up timber prices and risk hundreds of jobs in traditional wood industries.

"That is why I am urging the UK Government to join the Scottish Government in removing subsidies from large-scale biomass electricity generation."

The UK Government's ambitions for large scale biomass electricity will require approximately 37-67 million green tonnes of biomass by 2020. The Forestry Commission's current Softwood Production Forecast for Great Britain estimates an annual average of almost 12 million green tonnes over the five year period 2017 to 2021.

(GK)

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