Government must do more to help biofuel industry grow - Lamb

9.21.00am UTC (GMT +0000) Wed 18th Jan 2006

Norman Lamb MP, Liberal Democrat Shadow DTI Secretary, has today written to the Minister for Energy, Malcolm Wicks MP, urging him to speed up the development of the biomass sector.

Biomass fuels are an extremely environmentally sustainable fuel source. They typically produce a lifetime carbon balance in excess of a 20:1 ratio, require no agrochemicals beyond the establishment system and act as a significant carbon sink.

In his letter, Mr Lamb asks the Government to:

• Consider waiving the limits on Renewable Obligation Certificates (ROCs) for co-firing coal firing power stations where the source of biomass is within 50km of the power station where it is burnt to provide a sufficient-sized market to give the industry a kick-start;

• Make a clear and unambiguous statement that such a waiver would operate for the lifespan of the biomass crops grown to supply these power stations;

• Look into the possibility of setting up an accreditation scheme for imported biomass to ensure it comes from a sustainable source, similar to the scheme in operation for lumber;

• Provide additional support through the Regional Development Agencies for renewable energy projects and a modest expansion of the availability of planting grants from DEFRA.

Commenting, Mr Lamb said:

"The production of biomass in the UK as a renewable energy source is still not reaching its potential, and current Government policy may, in some respects, be inadvertently constraining the development of a UK biomass industry.

"Biomass crops remain in the ground for 15-20 years and have a low annual production cost. But the expensive cost of transporting crops over long distances means farmers are unwilling to make the leap of faith required to plant these crops without a secure long-term market on their doorstep.

"Coal-fired power stations are keen to use locally produced biomass for co-firing, but lack the confidence to set up long-term contracts with local producers so they end up buying their biomass on an ad hoc basis from unsustainable sources. The Government wants biomass to be grown within 25 miles of the end user, yet biomass is being shipped from South East Asia to burn in the UK as renewable power.

"With just a little help from the Government, biomass can make a substantial contribution to achieving targets for reductions in greenhouse gas emissions."