As part of the support offered to the forestry and biomass sectors, RDI undertook a study of the contribution of biomass to the economy of north east England.
The research, carried out by RDI as part of the region’s NEWHeat project and backed by One North East and the Forestry Commission, also suggests that ultimately, in terms of economic value, biomass could become the most important solid fuel for heating.
This comprehensive study covered all aspects of biomass production and consumption, and determined that there is a contribution of at least £49m annually to the regional economy from the sector, and that the amount will increase to at least £76m per year by 2015.
The report’s author and Project Director of Northwoods, David Clubb, said: “Whilst other renewables – particularly the wind industry – have undertaken studies to find out how much their sectors are worth to the UK economy, there has been very little research to demonstrate the great value to the UK from biomass.
“It is important that the value of the sector to the region is laid out in straightforward economic terms, in order that the right policy and strategy can be developed to support its continued growth.”
His research is thought to be the first of its kind in the UK, with no other region known to have explored the potential economic value of biomass in this way. It is already being used in the development of national policy.
One North East’s Director for Business and Industry, Ian Williams, said: “This research shows how biomass is a young, growing market, as we move to a low-carbon economy and with organisations and consumers looking for alternative methods of heat and power as energy prices continue to rise.
“This research gives us a robust picture of the size of this potential opportunity, and will guide future planning to build the market and supply chains in the region, adding value across other processes and enabling businesses to build their skills and meet industry standards.
“At a time when finding ways to supplement income and move into new markets is particularly important for small businesses, biomass will provide opportunities for some – especially in rural areas.”
Brendan Callaghan, Forestry Commission Regional Director for North East England said: “The Forestry Commission welcomes the findings of this report and strongly supports One North East’s recent investments to help grow the sector. The findings confirm what many in the forest industry have known for some time – that there is considerable potential to increase the use of wood fuel to help boost the economy and meet the region’s renewable energy targets. The North East already produces more wood from its forests and has a larger wood processing industry than any other part of England, and new local markets for wood fuel will provide a further boost to the economy in rural areas and help fund the sustainable management of woodlands.
“It is important the woodlands are managed to help maintain their environmental, social and economic values. As well as producing timber, managed woodlands provide both higher quality natural habitats and more enjoyable places to visit than woodlands that are not managed. New wood fuel markets have the potential to be a major source of funding for management in small and otherwise uneconomic woodlands. As the market and supply chain develops, we expect to see increasing quantities of wood fuel being traded and more woodlands being actively managed.”
This research built upon years of experience in the biomass and forestry sectors, and is an example of the sort of hard-hitting and influential policy and development activities undertaken by RDI.
To read the full report please click here.
If you would like to read more about RDI's reasearch work please click here.
