Arbuthnott Wood Pellets Ltd was launched at All Energy 2007, the UK’s largest renewable energy event, and plans to operate a plant producing 3,000 tonnes of wood pellet fuel, known as Stovies, a year at Arbuthnott Home Farm in Kincardineshire, Scotland.

“I am delighted that a local supplier using local resources from sustainable Scottish forests is to bring Stovies wood pellets onto the market to help replace fossil fuel,” said Andrew Nicol, a bioenergy consultant.

Mr Nicol added that he expected wood pellets to become an increasingly popular form of heating over the next few years, citing their similar heat value to coal as one of the main reasons.

Wood pellets are already widely used in Scandinavia for district heating schemes and in pellet-fired stoves and domestic heating sytems, applications which Mr Nicol expects to become more prominent in the UK.