HOW CAN I BECOME A WOOD ENERGY BUSINESS?

The renewable energy industry in Wales is providing the potential for new Wood Energy Businesses to be established by entrepreneurial individuals or co-operatives. www.woodenergybusiness.co.uk A Wood Energy Business will need: 1. A guaranteed, local supply of wood or processed wood fuel 2.

A contract with an end-user, such as a community heating project providing heat for homes, farms, schools and leisure facilities as well as large commercial and industrial units 3. A system to convert wood to energy such as a stove boiler or Combined Heat and Power Plant (refer to fact sheet 5) The development of the wood energy industry offers an important diversification opportunity for: • forestry companies • sawmill companies and other wood processors • farmers • woodland owners

One of the benefits of wood fuel is that it is viable on a local level: you don't need to be a large company to break into the industry. The Forestry Commission's Wood Energy Business Scheme provides support for establishing your new business. How can I get involved? Wood energy businesses can operate at all stages in the supply chain. For example: Providing and maintaining wood fuelled boilers Some companies have these services "in house", others buy in these skills from boiler manufacturers. In either case, end-users such as schools, offices, and domestic housing will require a contract covering the supply and maintenance of boiler equipment (refer to fact sheet 6).

Ensuring a consistent and reliable source of wood fuel to customers A wood energy scheme will require a constant and reliable supply of wood fuel, of a quality suitable for the boiler (refer to fact sheet 2). Wood fuel can be sourced from farm woodland, forestry and sawmill coproduct and can provide an additional income stream from under managed woodlands (refer to fact sheet 2). The wood must be sourced and processed within a reasonable distance of the end user to cut down on transport costs.

Managing the whole system and selling energy directly to the end-user in the form of electricity or heat These companies are often called Energy Supply Companies, or ESCo's, and will sometimes contract out elements of the business or cooperate with other companies who may specialise in fuel supply or boiler maintenance. How is the Forestry Commission Wales helping Wood Energy Businesses? By giving fuel supply guarantees to help Wood Energy Businesses get finance for their projects. By providing flexible contracts, if the Wood Energy Business finds an alternative supply from private woodlands, then the Forestry Commission will not hold them to the contract.

By a Wood Energy Business Scheme assisting with capital costs of equipment purchase, plant installation and fuel processing (chippers, drying sheds etc). Advantages of Wood Energy Businesses; For the customer An opportunity for business diversification. Ability to demonstrate sustainable credentials. Predictability of fixed payments. No depreciation costs or repair bills on the boiler. No boiler replacement costs. No climate change levy. Choice of paying for either fuel e.g. wood chip or energy i.e. heat and/or electricity. For the Wood Energy Business Conversion of low value wood fuel to high value energy. Long term customer contracts. Predictable and steady income stream. Predictable financial breakeven point. Local and easily managed business.

Please note this article and sibsequent pdfs are copywrite Wood Energy Business Scheme

• Wood
• Converting wood into energy
• Preparing wood
• Planning
• Using wood energy in the home
• Guidance