Investigations by Powergen into the establishment of a wood-burning power station at Lockerbie in Dumfries and Galloway are still under way.

Meanwhile the Wood Panel Industries Federation (WPIF) is stepping up its representations to the government to spell out its opposition to the subsidies given to power stations.

WPIF director-general Alistair Kerr said: “We are not against the burning of wood per se, but our great fear is – and there is growing evidence to support this – that, because of subsidies, power generators would be able to pay more for wood than our industry can.

“The generators are not putting a value on the wood – they are just burning it. At the moment there are only plans for one or two wood-burning power station sites, but we don’t know what is going to happen in the future.

“The wood panels industry consumes four million tonnes of wood. The proposed Powergen plant at Lockerbie alone could consume around 500,000 tonnes – so you wouldn’t need too many Lockerbies.

“If there were no subsidies we could compete on a level playing field.”

&#8220We are not against the burning of wood per se, but our great fear is that, because of subsidies, power generators would be able to pay more for wood than our industry can”

WPIF director-general Alistair Kerr

Mr Kerr said the WPIF was actively gathering support through MPs with an interest in renewables and timber, plus constituency MPs. He is also hoping a meeting promised by former energy minister Brian Wilson will be honoured by his successor, Stephen Timms.

David Wood, company secretary at AW Jenkinson Forest Products, which has allowed Powergen an option to lease part of the Steven’s Croft site, said a decision on the viability of the wood fuelled power station at Lockerbie was likely at the end of the year.

He added: “The panel board industry feels threatened by power stations, but we don’t believe there is anything to fear.”

A spokesperson for Powergen said that the project is on schedule.