MP questions biomass subsidies
resource.co | 16 April 2012

The government’s subsidy for power generated through biomass combustion has been called into question in an open letter from MP Stephen McPartland, Chair of the All Party Parliamentary Furniture Group (APPFG). Writing in support of the campaign by the Furniture Industry Resource Association (FIRA) and the British Furniture Confederation (BFC) to raise awareness of the alleged detrimental effect of the current biomass subsidy, McPartland expressed concern that renewable obligation certificates (ROCs) are currently being harnessed by big businesses on an industrial scale, rather than by small, sustainable combined heat and power projects.

He wrote: ‘Perhaps the most significant threat to the [furniture] industry at the moment is the government’s support to energy suppliers in the form of subsidies. These subsidies cost the taxpayer over £100M in 2009/10 and the figure is rising all the time. They encourage the construction of new power stations designed specifically to burn huge quantities of biomass. Unfortunately, biomass is a euphemism which actually means trees and wood. Done on a small scale and combining heat and power (CHP) biomass plants are an excellent idea: they help provide economic and environmentally efficient solutions at a local level.

‘Sadly, the subsidies are being harnessed by big business and on an industrial scale; this is neither sustainable nor environmentally sound.’

Last month, E.ON was granted permission to build a 150MW dedicated biomass plant in Bristol, to be fuelled mainly by imported virgin wood and dedicated energy crops, as well as locally-sourced waste wood.

BFC and FIRA’s petition calls on the government to change biomass subsidies for three key reasons: to save jobs in the furniture industry; to save the public money; and to protect the environment, as when wood is used for furniture it stores CO2, but when it is burned for energy, it releases CO2 and is often done in an inefficient manner. The petition calls for waste wood to be burned in place of virgin wood.

The government aims for ‘bioenergy’, including both biomass combustion and anaerobic digestion, to account for 30 per cent of the country’s renewable energy generation by 2020. The Renewables Obligation (RO) is currently the primary mechanism to support deployment of large-scale renewable electricity generation, and will eventually work alongside the Renewable Heat Incentive (RHI), which has been pushed back several times and is now due to launch in November of this year.

For more information on the current ‘biomass boom’, see Resource’s feature article.

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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?

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There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.