Scottish Woodlands Ltd’s decision to move into the biofuels market will not impact its existing sawmill and panelboard business, managing director Colin Mann has said.

The company, which manages 200,000ha of woodlands and harvests 750,000m³ of timber a year, has acquired a 12.5% shareholding in Northern Energy Developments Ltd that will give its clients additional access to the renewable energy market and increase the company’s penetration in the sector.

Mr Mann said there was no issues concerning sawlogs, as the biomass involved utilising stumps, brash and small diameter wood. Trials with stump removal technology are currently being held in south-west Scotland.

“We’re not looking to go in that [biomass] direction at the expense of any other business,” said Mr Mann. “The sawmill and panelboard market are the core of our traditional business.”

He said sawmill concerns that the energy market would eat into their supplies were easing.

Mr Mann described the increased focus on biomass as a “sensible onward development for the forest industry”, enabling it to use more of the tree.