Wood pellets are a carbon neutral, renewable biomass energy fuel – a key driver in the UK government’s plans to obtain 12% of all heat energy from a renewable source by 2020. The CO2 released when burning wood is re-absorbed by the amount of new trees that we plant.
Wood pellet boiler equipment is cost effective to both install and operate and has significantly lower maintenance and capital expenduture costs compared to wood chip boilers. Wood pellet boilers will qualify for (amongst other grants) the UK government’s Renewable Heat Incentive (RHI) launched in November 2011. This scheme has been designed to assist with the costs of installing a renewable energy system at a rate equivalent to an 8% return on investment.
For further information on the Renewable Heat Incentive, please click here.
Cost of heating with wood pellets is more cost effective than with fossil fuels aided by a reduced VAT rate of 5%.
|Wood pellets||£190 per tonne||4,800 kWh/t||4.0p/kWh|
|Heating oil||58p per litre||10 kWh/ltr||5.8p/kWh|
|LPG (bulk)||49p per litre||6.6 kWh/ltr||7.4p/kWh|
Source: Biomass Energy Centre 2011
Prices quoted include delivery
Wood pellets have a high energy density and behave like liquid fuels. They can be poured or blown into a storage tank, don’t rot or degrade and boiler systems run automatically – just like an oil or gas boiler with no need to manually refill, stoke or shovel.
Due to their density, wood pellets allow for compact storage resulting in cheaper transport and storage costs.
Wood pellets are manufactured from a widely available feedstock typically resulting in less price volatility than fossil fuels.
Wood pellets are not a new technology. The use of wood pellets for domestic and commercial use has been well established in Europe for the last 25 years.