There is a huge misconception that the wood pellets for heat sector is the same as or aligned to the larger industrial markets which feed into the big utility industries (eg power stations). It is not. Wood pellets for heat is a UK-driven market with positive localised benefits that allow homeowners and businesses, often in rural or more remote locations, to use low carbon energy (heating) instead of fossil fuel (eg oil, LPG, coal). With more Government investment and support, the wood pellet heat industry could create a self-sufficient, UK-led market that encourages growth (eg new wood pellet production facilities) and jobs creation as part of net zero efforts.

Furthermore, in order to deliver the Government’s new woodland and tree planting initiatives, there needs to be a framework for sustainable forestry which includes a market for woodland waste by-products (biomass) and not just the actual timber (high quality). This is where the potential and opportunity for UK wood pellet production is huge.

The UK has an increasing demand for wood for housing, construction and furniture use, but the residues, sawdust or ‘fines’ that remain need to be recycled. If left, its natural decomposition would produce methane and C02 which is far worse. Additional users of this feedstock ensure that forests are better managed and therefore produce higher yields per hectare[1]. [1] State of Europe’s forests Report

Future investment: 

An average pellet production plant will require circa £10m investment per 50,000 tonnes production capacity. Local companies and investors are willing to move forward and support rural communities, bringing manufacturing back on a regional and national level, and closer to home. This will also reduce carbon for transport and reduce the use of fossil fuels like LNG being transported from the Middle East or oil from Russia being applied to the gas networks. Locally grown wood means locally manufactured wood pellets.

We’re calling on Government to provide solid ministerial leadership and clarity on the long term future of biomass heat as the cornerstone of a decarbonised UK.