Canada Wood Today | The Canada Wood Group

An opportunity in the UK for Canadian bio-fuel suppliers?

Patrick Cooper

By Patrick Cooper

Market Development Coordinator, Canada Wood UK

August 22, 2011

The UK government is poised to introduce a scheme intended to reduce emissions from fossil fuels by providing long-term financial support for renewable heat installations. The Renewable Heat Incentive involves making tariff payments to owners of private, public and domestic properties that generate heat from renewable sources such as biomass and solar.

Experts believe the initiative will provide a strong incentive for commercial operators and many domestic property owners to change from using fossil fuels to renewable fuels for their heating needs. Tariffs were to be paid from July 2011 to non-residential owners, and from October 2012 to householders, though a delay in implementation is expected now until September 2011. The scheme is intended to remain open to new registrations until at least 2020.

An immature supply-side sector is poised to take advantage of a potentially huge uptake in demand for renewable energy. Wood pellet manufacturing and distribution companies are being formed, accreditation organisations established and standards developed. It appears that the demand for biofuel could quickly exceed the capacity of the UK’s forests to yield sufficient volumes of biomass for wood pellets, briquettes, chips and logs, and the availability of wood waste.

Wood pellet specifications surround consistency of supply, calorific value, moisture content, ash content, and pellet size. Suppliers of wood pellets need to observe new European bio-fuel standards and provide the usual evidences proving sustainability of origin.

Further details and contacts are available from Canada Wood UK.