Heating programmes

In Britain there are comparatively few (perhaps a hundred) automated, wood-fired central-heating systems, mostly in businesses that produce considerable volumes of waste wood that they can use themselves, or on large rural estates. A handful of wood-fired-power or CHP schemes were also in operation as of mid-2002. Indigenous suppliers of both fuel and burners are small and few in number. Scotland, Wales, East Anglia and the south-west of England are out in front, with the West Midlands close behind.

The Forestry Commission is working with private forest owners, potential cus- tomers and government departments to identify opportunities for wood fuel. The Commission has produced a draft wood-fuel policy, which looks at the obstacles to developing a wood-energy industry and outlines ways to overcome them. Eng- land, Wales and Scotland are developing their own wood-fuel strategies to meet their particular pressures and conditions, but the Commission has also outlined a broad three-phase framework strategy as a guide for moving forward.

In Phase 1, the Commission will seek to stimulate and promote markets for wood fuel by focusing on existing or low-risk technologies. It hopes that development of markets for heat and co-firing with coal for electricity generation will demonstrate that a market for wood fuel exists and improve the knowledge base and operating systems, which will in turn lead to a reduction in costs and an increase in profitability. Phase 2 will attempt to develop wood-fuelled production of CHP, evaluate new technologies and systems (especially co-firing with gas, pyrolysis and ethanol production), and improve perceptions of wood fuel.

Finally, Phase 3 will build on pilot projects by introducing the most successful technologies and systems identified at the pilot stage. At the same time, the sustain- ability of various levels of wood-fuel removal will be monitored and, where levels are unsustainable, practices adjusted to ensure sustainable forest management.

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9.3 Wood-energy strategies

Distinctive regional wood-fuel strategies are being developed across the UK. In England, the woodland resource is a valuable one of over 1 million hectares, representing 8.4 per cent of the total land area.

Marches Energy began the Marches Wood Energy Network (MWEN) in January 2002. The network has run workshops and built a network of at least 70 organizations and individuals wanting to use wood heat. It is now ready to support installations and keen to start an ESCo.

Herefordshire Sustain Project was started in February 2001 by the Small Woods Association. It involves a broad partnership with local estates, Holme Lacy College, Bulmers and others and has plans to use wood from the estates to heat local build- ings, including the college, so acting as an educational resource on sustainability courses.

Worcestershire County Council has installed a 700 kW wood-fired central-heating system at County Hall, and another at Garibaldi School in Mansfield, with plans to replicate on eight other sites. The council works via a contract with a private-sector ESCo and there is no public subsidy, although the total cost will be a little higher over the next ten years than an equivalent gas-fired system. The partnership has established a not-for-profit renewable-energy company, Renewable Nottinghamshire Utilities (ReNU).

ReNU has already secured DTI and New Opportunities Fund (Lottery) funding to subsidize the installation of 4 MW of wood-fired boilers to operate under energy- services contracts. The initial tranche of boilers is being funded through the Public Sector Agreement Initiative and ReNU will secure fuel of sufficient quality and quantity under a fuel-supply agreement. These sources include wood from sustainably managed local forests and woodlands, clean recycled waste wood, new dedicated energy forestry, and potentially short-rotation coppice.

The Forest of Mercia, one of 12 community forests nationally, started in 1990 with local-authority and other partners and has trialled wood heating (pellets and logs), although fuel supply is seen as a key constraint. A school and the project offices have been heated with wood and an action plan for extending wood-fuel use has been produced.

The potential supply of wood in the West Midlands much exceeds present demand. Foreseeable demand can be met from woodlands and clean waste from wood pro- cessing and manufacture. The creation of a national forest will provide a significant extra and growing resource, with around 500 ha of new woodland per year. Cost will be a critical factor, but currently there is a surplus of low-grade material that could be used. Figures quoted for wood fuel have been in the region of £40.00–45.00/oven- dry tonne delivered (equal to £20.00–22.50/green tonne with a 50 per cent moisture content). A similar strategy is being developed in the south-west.

With an investment from the government of £100 million, DEFRA’s Energy Crops Scheme encourages landowners in England to diversify their business by setting up producer groups and planting energy crops. New energy-efficient schemes to heat homes, schools and other public buildings received more than £6 million in direct

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grants, adding to another tranche of £22 million already handed out to projects under the government’s Community Energy Programme.

The investment has prompted plans for five large biomass power stations and seven small-scale biomass heating projects in England. These could produce enough heat and electricity to meet the needs of more than 90 000 homes – equivalent to a city the size of Southampton.