Norbord managing director Karl Morris says that subsidising wood energy causes timber price inflation and could raise UK carbon emissions.
Mr Morris made his claims talking to construction trade journalists recently.
He said that the government’s issue of Renewables Obligations Certificates (ROCs) to subsidise energy generation from green sources had already helped make the power industry the third biggest wood fibre consumer in the UK, pushing up raw material prices for panel processors.
“What will be the raw material price tipping point where it is no longer viable to produce wood panels in this country?” he asked.
Producing electricity from woodfuel was only 30% efficient, said Mr Morris, and also meant that the carbon in the timber was released immediately, undermining government targets for cutting CO2 emissions.
Mr Morris said that government wood energy policy should be based on a hierarchy of use, as laid down in the Wood Panel Industries Federation’s Make Wood Work campaign. This means using wood for products that lock in carbon long term first, then recycling and reusing it and only burning it as fuel when no other use is possible.
A full report will be published in a forthcoming issue of TTJ.
