Future of Biomass

Debate between Graham Stringer and Graham P Jones

Monday 20th February 2012 Commons Chamber

[Graham Stringer]

The hon. Lady makes an important point.

The committee warns that the danger of that error is “immense”, stating that

“current harvests…have already caused enormous loss of habitat by affecting perhaps 75% of the world’s ice- and desert-free land, depleting water supplies, and releasing large quantities of carbon into the air.”

On that basis, it urges that European Union regulations and policy targets should be revised to allow bioenergy use only from additional biomass that reduces net greenhouse gas emissions without displacing other necessities such as the production of food and fibre. It advises that accounting standards should fully reflect all changes in the amount of carbon stored by ecosystem, and that energy production from biomass should be based on by-products, wastes and residues rather than on stem wood that would otherwise continue happily to grow as forest biomass.

The implications of that analysis were explored by Atlantic Consulting in “Biomass’ Forgotten Carbon Cost”, published on 8 November 2011. I have sent a copy of that paper to the Minister’s Department, as well. Atlantic Consulting looked at the pattern of typical biomass plants in the UK and found that 58% of their fuel tonnage derived from wood. Some of that is waste, such as end-of-life furniture and arboreal cuttings, and some is residue, such as that from sawmills. Unfortunately, however, the largest fuel component of biomass power is stem wood—that is, tree trunks harvested with the intent of using them for boiler fuel.

Atlantic Consulting proceeded to estimate the carbon footprint of a typical UK biomass plant. Interestingly, its footprint is 690 grams of carbon dioxide equivalent per kWh, which is well above the current UK average footprint of 520 grams per kWh and the lowest-carbon conventional gas-fired combined cycle at 401 grams per kWh. It also far exceeds the eligibility hurdle of 285.12 grams per kWh set for renewable obligation certificates from 2013. In that light, more than half of biomass-powered capacity would not qualify for credits under the renewables obligation. That could be a shock to the owners if they found that they did not benefit, and it would certainly be a shock to taxpayers if they found that they were subsidising higher-carbon power generation than the existing average.

Will the Minister provide the owners and the taxpayers with a measure of reassurance, because it appears that the current sustainability criteria for biomass are not stringent enough? If the European Environment Agency scientific committee or Atlantic Consulting are wrong in their thinking, will he please explain the situation, so that we can get this right for all concerned? The interests of the economy and of the environment demand clarity.

In October last year, the Scottish Government published a consultation that proposed removing all subsidy from large-scale woody biomass electricity plants. Large-scale electricity-only biomass was, in their view, inefficient and required more wood than the UK could produce. Although current plans are to import wood, there is no guarantee that biomass plant operators will look exclusively abroad for their wood, and the overseas supply might not be stable or secure. The current subsidy means biomass providers will be able to afford more than the current market rate for wood, which might push prices up and price out traditional wood industries such as sawmills, wood panel mills, furniture manufacturers and construction, which in turn, the Scottish Government said, puts hundreds of skilled rural jobs at risk. What is the Minister’s view of the Scottish policy stance? Are the Scottish Government wrong, or are they ahead of the game?

[Graham Jones (Hyndburn) (Lab)]

In the past five years we have seen wood prices rise by 55% because of biomass subsidies. An employer in my constituency, the furniture manufacturer Senator, which employs about 1,000 people has to compete against rising wood prices simply because of the biomass subsidy. Should not the Government consider the impact of biomass subsidies on employment in furniture manufacturers and other wood-using companies, as well as the impact on the environment?

[Graham Stringer]

My hon. Friend makes exactly the same point as I did in a different way.

I think that biomass deserves a place in the renewable energy mix of the future, but we need to get the rules of the game straight in advance, so that society is not left picking up the pieces of an impetuous policy.