The WPIF says that the biomass subsidy support mechanisms proposed by the bill, due for its third reading in the House of Lords on November 19, could “inflict further damage” on the panel sector, in addition to that caused by current legislation and renewables obligation payments to the large scale energy producers.
It argues that subsidy for the latter (as oppoosed to use of wood fuel for local heat and power generation) distorts markets, pushing up costs for existing fibre users, such as panel producers.
“This is damaging the future viability of the sector in the UK,” said WPIF director-general Alastair Kerr. He added that the WPIF was “not giving up hope” but thought it was now too late for the new bill to be substantially changed in panel producers’ favour.
“We tabled an amendment proposing a wood supply strategy as part of planning obligations for biomass-fuelled power plants in England and Wales, based on the Scottish model,” said Mr Kerr. “But it didn’t get through.”
However, he said, the industry would continue to make its case to government. “We’re now looking to influence future bioenergy policy and post-2017 when the current ROC scheme ends.
We want future subsidy to be focused on expansion of other non-wood fuels and, at the same time, for UK forest cover to be increased.”
As part of attempts to sway politicians, WPIF member Norbord has distributed a “parliament” of toy owls to MPs and Lords with a leaflet on the benefits of using wood for manufacture rather than large-scale energy generation.
The owl is the symbol of the panel sector’s “Let’s use wood wisely” campaign.
