Wood (Hansard, 14 July 2003)

§ Mr. Bellingham
To ask the Secretary of State for Trade and Industry (1) what research has been undertaken on the possible distortion of the wood supply market in the UK as a result of the Renewables Obligation; and if she will make a statement; [125113]
(2) what measures she is taking to discourage the burning of wood products used in industry as a raw material as a subsidised biomass fuel for energy production. [125116]

§ Mr. Timms
The Forestry Commission, working with others, are currently undertaking a Woodfuel Resource Study, which will quantify the resource from traditional forests, sawmill co-product, arboricultural arisings and short rotation coppice. Defra and the Waste and Resources Action Programme (WRAP) have funded studies on the quantity and location of recovered wood.
As a result of market pressures, the forestry industry has been investigating alternative end uses for its products. The forest industry regards energy generation using wood as an important new market to explore.
I am aware that generators are also investigating the possibilities presented through the use of non-wood materials as a source of biomass for use in co-firing. At present, large co-firers are testing the feasibility of using wood as well as imported olive cake and palm oil husks.

§ Mr. Bellingham
To ask the Secretary of State for Trade and Industry what measures are being taken to promote the use of wood wastes with no commercial value as a biomass fuel. [125114]

§ Mr. Timms
The Government are providing support for the use of wood waste as a biomass fuel in a number of ways, as outlined in reply on 24 June 2003,Official Report, column 683W and 26 June 2003, Official Report, column 927W. This will help to deliver the Government's policy objectives on national energy production. The support schemes do not apply to other uses of wood waste.

§ Mr. Bellingham
To ask the Secretary of State for Trade and Industry what research she undertook prior to the introduction of the Renewables Obligation into its impact on the wood panel industry. [125170]

§ Mr. Timms
We carried out three full consultations on the Renewables Obligation before its introduction on 1 April 2002. The first consultation paper, "New and Renewable Energy: Prospects for the UK for the 21st Century", was issued in March 1999 and was accompanied by Supporting Analysis produced by ETSU. The report presented an up to date status report on new and renewable energy and flagged up issues concerning forestry wastes and also the socio-economic implications of renewables.

§ Mr. Bellingham
To ask the Secretary of State for Trade and Industry what recent discussions she has had with representatives of the wood panel industry regarding the impact on their supplies of basic raw material of electricity generators using wood residues as a green fuel. [125171]

§ Mr. Timms
My officials are facilitating work between representatives of the UK wood industry and co-firing power stations to explore the opportunities offered by24W co-firing under the Obligation for UK Forestry, and, in particular, the potential for using by-products from existing wood industries. Working groups continue to meet.
It is hoped that this initiative, if successful, will have the dual benefit of reducing imports and making more biomass available for a larger market in the UK, thereby helping to stabilise prices.
We understand from the forestry industry that it can meet demand from power generators from existing surplus forestry material.