Co-firing will form part of consultation looking at possible adjustments to the government’s renewable energy policies, including a proposed “banding” system to provide greater support for emerging technologies in renewable energy generation.

The consultation was announced in the government’s newly-published energy review, which says electricity companies must now generate 20% of their energy from renewable resources by 2020 – up from the current 15%.

The wood-based panel industry has raised concerns that a growth in co-firing could lead to power stations outbidding it for wood raw material.