A shot in the arm for biomass industry
Apr 30 2009 by Chris Knox, The Journal
The position of the North East as the UK’s biggest hub for the biomass industry was cemented last year with the opening of one of the world’s biggest wood burning power plants on Teesside. Christopher Knox looks at what is being done to help sustain a healthy supply chain in the region.
LAST November saw the launch of £60m Sembcorp Biomass power station in Wilton, which uses 300,000 tonnes of sustainable wood each year to generate 30mw of electricity - enough to power 30,000 homes.
As well as having the potential to create more than 40 jobs over the next four years at the plant, it has provided a huge shot in the arm for the region’s burgeoning biomass industry, with hundreds of jobs expected in the coming years as an industry supply chain begins to take shape.
New figures from regional development agency One North East show that the region is due to be the biggest producer of biomass energy in the UK and could contribute over £75m to the local economy each year by 2015.
However, in order to secure such growth it is imperative that the region is able to sustain a strong supply, providing work for larger manufacturers down to small scale wood-chippers.
One of the biggest initiatives to get the North East moving in this direction is a £1.2m fund from Rural Development Initiatives Ltd, which is being run by North East woodlands initiative RDI Northwoods to provide cash for those firms looking to benefit from the quick-growing market.
The latest figures from One North East, which manages the fund in the region, shows that £357,000 has already been offered to businesses since it was launched last year, with £600,000 earmarked for specific projects over the rest of 2009.
Project Officer Jennifer Hewitson said: "We're really pleased with the range of applications submitted and this high level of interest is evidence of the growth in the biomass sector in the North East.
"Improving supply chains will allow the industry to pick up momentum, making sure that current and future demand for biomass products can be met by local businesses. I very much look forward to working with more businesses in the future funding rounds."
The initiative, which is co-funded funded by the European Union and Defra, has already helped five businesses in the North East with a range of activities - from buying harvesting and transport equipment, to building a weatherproof store for woodchip.
Contract forester Richard Makepeace from Hexham applied for support to buy equipment including a thinning harvester and firewood processor, so that he can expand and develop his business further into biomass and firewood markets.
Richard, who co-manages forests on the Chipchase in Northumberland and Minsteracres estate in Consett, County Durham, already supplies domestic customers with firewood across the local area, from Gilsland to Shotley Bridge, and is hoping to double his firewood production within three years.
Richard, who operates as a sole trader, said: "I'm delighted that my bid was successful," he said. "Our new firewood processor makes the whole process so much quicker and easier - what would've taken three of us a full day using manual chopping techniques can now be done by one of us in just a few hours, so it will make a huge difference to the business.
“The firewood market is strong and we're now in a better position to be able to meet demand."
Decisions are currently being made on a second round of applications and Northwoods is calling for other rural businesses interested in the project
to contact them ahead of further funding rounds throughout 2009.
RDI Northwoods director David Clubb said: “The biomass industry is one of the North East’s biggest growing sectors and presents a number of opportunities for budding entrepreneurs and established businesses.
“The opening of the plant in Wilton served to ensure that the industry in the North East has a steady base for the future.
“The funding is vital to this chain and allows the smallest operation to become involved with a multi-million pound plant.”
One North East's rural board member Ian Brown said: "This growing sector is an area of opportunity for farms and forestry businesses, and we want to strengthen our fledgling biomass supply chains so that they can meet demand as it increases.”
Improving supply chains will allow the industry to pick up momentum
