News Article

North East farms and forestry businesses looking to produce biomass for low carbon heat and power markets are in line for support from a new project to build supply chains in the regional industry.

Just over £1m from the Rural Development Programme for England (RDPE) in the region will help new and existing feedstock suppliers for markets such as woodchip heating and combined heat and power generation, to develop the facilities and systems they need and to access specialist training.

The use of biomass – solid plant or animal material – to generate heat and electricity is recognised by the Government as a technology which can deliver immediate carbon and cost savings for homes and businesses.

The industry is small but growing in North East England, with around 25 current suppliers who, together, are sending approximately 2,500 tonnes of biomass to market each year. New demand is likely to increase that figure by a further 10,000 tonnes over the next year - the equivalent of around £500,000 – and the potential is there for the sector to grow from an annual value of around £125,000, to an estimated £1.5m by 2013.

However, farms and forestry businesses in the region wanting to expand into the biomass market are often small or micro enterprises, with limited resources to invest in the training and equipment needed.

Run by Rural Development Initiatives Ltd (RDI), this project will see more capital investment in facilities and systems for harvesting, processing, storage and distribution; work on biomass fuels such as those from forestry, arboricultural arisings, forestry and timber co-products, and short rotation coppice; more staff trained to supply biomass; and more businesses meeting industry quality standards.

The project is just one element of the RDPE’s socio-economic investment in the region, which is being managed by regional development agency One North East.

One North East rural board member, Ian Brown, said: “Biomass will have an important role to play in meeting the UK’s targets for cutting carbon emissions, in our move to a low-carbon economy.

“Each regional development agency has been tasked with looking at the biomass industry in its region and at how we can build the use of this technology, and this is part of that response in North East England.

“This growing sector of the rural economy is an area of opportunity for farms and forestry businesses, and we want to strengthen our fledgling biomass supply chains so that they are able to meet demand as it continues to increase.”

RDI’s Northwoods Director, David Clubb, said: “This project will help cement the reputation of the North East as one of the strongest regions of the UK in terms of the support provided to the biomass sector.

“It will build substantially on existing regional projects, such as the One North East-funded NEWHeat project, which provides strong support for businesses considering a cost-effective, reliable and environmentally-friendly heating source.”

Businesses wanting more information on the RDPE biomass project should contact RDI on 01670 790444.

Businesses and organisations already using biomass in the region include the New and Renewable Energy Centre, which installed the region’s largest biomass boiler demonstrator to heat its Hebburn Electrical laboratories last year.

Thanks to additional funding from One North East, NaREC's boiler is demonstrating the benefits of biomass for commercial organisations with a large heating requirement.

The boiler takes up no more room than the original gas boiler and is fuelled by wood chips from local suppliers.

The Rural Development Programme for England 2007-2013 is jointly funded by Defra and the European Union, with the aim of delivering targeted support to land-based businesses and rural communities. It is managed in the region by One North East, Natural England and the Forestry Commission.

Defra announced this £3.9bn boost for the English countryside last year with record investment over seven years to help protect and enhance the environment, make farming and forestry more competitive and secure a sustainable future for rural communities.

The RDPE investment being managed by One North East combines larger projects to help many businesses in different sectors of the rural economy - including bioenergy and land-based skills, and projects adding value to agricultural and forestry products - with smaller investments to help individual businesses to start-up, grow or diversify. Rural community partnerships are shaping how at least 25% of the funding is invested themselves, using the LEADER approach.

For more information on RDPE in North East England, visit www.rdpenortheast.co.uk

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For more information on One North East, contact Claire Mason (press office) on 0191 2296429 or 07765220755, or by emailing Claire.mason@onenortheast.co.uk

For more information on Rural Development Initiatives, visit www.ruraldevelopment.org.uk