Howarth Timber has joined the national campaign to reform government subsidies for biomass that opponents say have hiked raw material prices for panel wood.
Make Wood Good believes subsidies that encourage burning biomass for electricity are environmentally flawed and have upset the fragile wood supply and demand balance.
In a new move, the owners of Tilbury coal power station, which was due to close in 2015, are seeking an exemption to continue as a biomass plant. It would be the largest of its kind in the world and NGO Biofuelwatch said this would push UK demand for biomass to around 60 million tonnes of wood per year.
Howarth said raw material costs of panel products such as chipboard have already soared 30%, with a 10% increase in the last quarter alone. These inevitably have to be passed on to builders struggling in the construction recession.
“Ill-conceived government legislation which offers subsidies to the electricity supply industry is driving prices of timber to new highs,” said Neale Brewster from Howarth Timber.
