Alistair Kerr, director-general of the Wood Panel Industries Federation (WPIF), met DTI officials to further highlight the industry’s case two days before the end of the first phase of consulation on reforming the controversial Renewables Obligation on December 15.
The panel sector is worried that power stations turning to renewable energy, aided by government subsidies under the Renewables Obligation, could outbid it for wood raw material.
“At the moment the obligation is an extremely blunt instrument,” said Mr Kerr. “There’s no differentiation in it. It’s a blanket approach. What is needed is to give subsidies where they are actually needed.
He said there was already a lot of competition in the established market for wood raw materials. He suggested subsidies were better suited for bioenergy plants using energy crops or forest brash, which were hard to source.
Steve Roebuck, Norbord‘s director of health and safety, and environmental affairs, said all the UK panel manufacturers were united in the lobbying effort.
“The level of subisdy is at a level that the panel industry cannot compete with,” he said. “We are in the forest industry so we understand what wood supply and demand looks like in reality. But the government’s policies are all based on incorrect data.”
He said a recent independent study commisioned by leading wood processors and woodland management companies wood demand was outstripping supply.
Changes made to the Renewables Obligation are expected to come into force in 2009.
