1 The potential uptake of domestic woodfuel heating systems and its 2 contribution to tackling climate change: a case study from the North East 3 Scotland 4 5 Diana Feliciano a , Bill Slee b, Pete Smith c 6 7 8 9 10 11 12 13 a Institute of Biological and Environmental Sciences, School of Biological Sciences, University of Aberdeen, 23 St Machar Drive, Aberdeen, AB24 3UU, Scotland, UK. E-mail: diana.feliciano@abdn.ac.uk (D. Feliciano). Corresponding author. Phone: +44(0) 1224273810 Fax: +44 (0)1224 272703 b The James Hutton Institute, Craigiebuckler, Aberdeen, AB15 8QH, Scotland, UK. E-mail: bill.slee@hutton.ac.uk c Institute of Biological and Environmental Sciences, School of Biological Sciences, University of Aberdeen, 23 St Machar Drive, Aberdeen, AB24 3UU, Scotland, UK. E-mail: pete.smith@abdn.ac.uk 14 15 16 17 Abstract 18 This study explores the scope for increasing the contribution of woody biomass for private 19 space and water heating in the North East Scotland, which corresponds to the administrative 20 districts of Aberdeen, Aberdeenshire and Moray. It assesses the potential benefits in terms of 21 carbon dioxide (CO2) emissions reduction of a partial shift from non-renewable heat sources 22 to wood energy. Woody biomass is an interesting case to study because it is a source of 23 renewable energy that directly depends on the rural land use sector. At the same time woody 24 biomass can play an important role in fuel poverty reduction. North East Scotland has good 25 potential for woody biomass production but the trade-off between food security and energy 26 production has to be taken into account if more woodland creation is sought. Forests occupy 27 19% of the land area, and a number of towns and villages are close to extensive forested 28 areas. North East Scotland administrative districts have supported the development of wood 29 energy through the development of woodfuel-based public service heating and institutional 30 structures are broadly conducive. Fuel poverty and greenhouse gas emissions from space and 31 water heating could be drastically reduced thought the wide adoption of heating systems in 32 the region. However, large up-front capital costs, delays in establishing support systems, and 33 the nature of support offered contribute to the likely failure to deliver policy targets such as 34 for reduced fuel poverty and CO2 emissions reduction. 1 35 36 Keywords: Woodfuel, space and water heating, fuel poverty, CO2 emissions, North East 37 Scotland 38 39 40 1. Introduction 41 Burning fossil-fuel to produce energy is the main human activity contributing to greenhouse 42 gas (GHG) emissions, specifically carbon dioxide (CO2), into the atmosphere which 43 consequently leads to climate change (IPCC, 2013). Replacing fossil fuels with energy 44 produced from renewable sources, such as biomass, can significantly decrease the current 45 levels of GHG emissions. Because of this, renewable energy has been regarded as highly 46 important for the future of our society (Blaschke et al., 2013). The need to make increasing 47 use of renewable energy sources is reflected by policies in many parts of the world, including 48 Scotland. In 2009, the Climate Change (Scotland) Act created a statutory framework for 49 GHG emissions reduction, by setting an interim 42% reduction target for 2020 and an 80% 50 reduction target for 2050 (Scottish Government, 2009a). One option to deliver significant 51 carbon savings is the production of heat from renewable energy (Scottish Government, 52 2009b). Renewable heat can be produced with solar, geothermal, heat pumps or biomass 53 technologies. According to Agostini et al. (2013), forest biomass, or woodfuel, is one of the 54 most promising renewable resources in terms of climate mitigation potential, and thus it is 55 likely to be widely exploited in the transport and energy sector. In 2008, biomass as a 56 renewable energy (RE) source provided about 10.2% (50.3 EJ) of global total primary energy 57 supply (TPES) (Chen et al., 2014). Examples of biomass sources are wood, energy crops 58 such as short-rotation coppice and short-rotation forestry, waste and agricultural residues 59 such as straw (Slade et al., 2011). These sources are normally classified in three groups: 60 primary residues; secondary and tertiary residues and biomass specifically produced for 61 energy production. The mix will vary greatly depending on region, markets, processing 62 capacity etc., but forestry can provide wood raw material in all three categories. Nordic 63 countries (with which comparison is frequently made in Scotland) use far more wood for 64 heating than the United Kingdom and in such countries the greater use of wood energy has 65 been a defining feature of their attempts to decarbonise their heating systems (Econ Pöyry, 66 2008). Developments relating to the use of wood waste have a relatively high potential 67 (Karjalainen et al., 2004). However, the high costs and complexity of the logistics and supply 2 68 chain management are limiting factors for the successful utilisation of waste biomass 69 (Iakovou et al., 2010). 70 71 The use of woody biomass as a source of renewable energy has repercussions on the 72 ruralland use sector where it contributes to above-ground and soil carbon sequestration during 73 the plant’s growth, and consequently mitigation of GHG emissions within the sector. It also 74 contributes to GHG emissions mitigation in the energy sector since it displaces fossil fuels 75 with high carbon content by a low-carbon emission fuel, the biomass. The Land Use Strategy 76 for Scotland considers renewable energy a key resource in Scotland and proposes a new 77 strategic approach where land use decisions (agriculture, forestry or renewable energy) are 78 considered holistically and not in isolation (Scottish Government, 2011a). 79 80 The production of renewable heat from woodfuel has also been advocated as a strategy to 81 confront the rise of energy prices, to support energy security and to address fuel poverty 82 (Slade, et al., 2011; Lund, 2010; McKay, 2003; SDC, 2005). A household is said to be in fuel 83 poverty if it needs to spend 10% or more of its income on fuel to meet its energy needs 84 (Baker et al., 2004). High oil and gas prices have underlined Europe’s increasing dependency 85 on imported energy and this encouraged the European Union to respond with a range of 86 measures to reduce energy imports, including support for the use of biomass (Scottish 87 Executive, 2007a). Rising energy costs have pushed many consumers to fuel poverty, 88 especially those not connected to the gas grid (Hills, 2012). According to Baker (2011), in 89 Scotland, about 30% of the households are in fuel poverty, and 34% of these are not on the 90 gas grid. Abundant resources of woodfuel at local level in some rural areas may provide a 91 sustainable source of energy if the woodlands from which woodfuel is extracted will be 92 replanted. In addition, the extensive use of wood fuel contributes to a decrease in the 93 dependence on fossil fuels which price is regulated by the global market price. The increase 94 in timber ready to harvest may contribute to future capacity of the forest sector to produce 95 energy. 96 97 Scottish houses generally have relatively poor insulation and consequently relatively high 98 heating costs and high GHG emissions due to oil consumption, and this contributes both to 99 high levels of fuel poverty and climate change (IPA, 2009). A cost-effective way of reducing 100 emissions from heating is to improve energy efficiency of households through better 101 insulation but retrofitting is often rather challenging because of house design. The 3 102 acceleration of renewable heating distribution in the domestic sector was the objective of 103 Renewable Heat Incentive (RHI) (Department of Energy & Climate Change, 2010). The RHI 104 prioritises the support of biomass boilers for households off the gas grid since these areas are 105 more prone to fuel poverty and higher GHG emissions due to the use of expensive heating 106 fuels with high-carbon content such as heating oil (Scottish Government, 2008). According to 107 Baker (2011), households depending on other fuels than gas for heating have much lower 108 energy efficiency standards than households heated on gas. 109 110 According to the Sustainable Development Commission (SDC, 2005), small to medium-scale 111 woodfuel heating could make a significant contribution to climate change mitigation in 112 Scotland, given the established forest culture, a supply of low grade wood, together with a 113 high demand for heat and high fuel prices, especially in rural areas. The Forum for 114 Renewable Energy Development in Scotland (FREDS) considers that market penetration of 115 renewable heat must reach the private sector to deliver significant renewable heat capacity 116 (Scottish Government, 2008). There has been substantial policy rhetoric for the use of 117 renewable heat from woodfuel in Scotland, but several factors such as high upfront capital 118 costs or the poorly developed supply chain have slowed down the uptake in the domestic 119 sector and this may create a gap between political ambitions and the reality of expanded 120 woodfuel use. In Scotland, about one third of primary energy consumption is for heating 121 purposes (Scottish Executive, 2007a), the majority of which is derived from non-renewable 122 sources. Over 90% of the renewable heat is generated from woodfuel, although compared to 123 many European countries, the overall level of woodfuel use is very low (Scottish 124 Government, 2011b). In Denmark, the total use of biomass resources for energy purposes 125 (including heat, electricity and transportation) make up around 70% of the consumption of 126 renewable energy with the use of firewood, wood pellets and chips steadily increasing during 127 the past years. In Finland, in 2004, about 20% of the total consumption of primary energy 128 was based on wood, and in Sweden, the bioenergy originated from the forestry sector 129 accounted for approximately 90% of the bioenergy used (Econ Pöyry, 2008). 130 131 North East Scotland, which includes the administrative districts of Aberdeenshire, Aberdeen 132 City and Moray, was the study region chosen to explore the critical factors affecting domestic 133 renewable heat uptake because forest resources to produce woodfuel are abundant, some of 134 the coldest places in the UK are in this region, and around 60% of the households are in rural 135 areas. In addition, Aberdeenshire aspires to become carbon neutral by 2030 (SAC, 2008). 4 136 Previous studies have given an overview of different governmental strategies to stimulate the 137 use of renewable energy sources (Agostini et al., 2013, Ericsson et al., 2004; Hillring, 1998) 138 and presented a framework for the understanding of barriers and supporting factors behind 139 wood energy technology implementation and commercialisation (Roos et al., 1999). This 140 study focuses on the production of renewable heat from woody biomass. It considers woody 141 biomass a land-based option for fuel poverty reduction and GHG emissions mitigation since 142 it directly depends on rural land uses, primarily, but not exclusively, forestry. A method to 143 estimate CO2 emissions from domestic space and water heating in North East Scotland for 144 different potential scenarios of woodfuel uptake is suggested. The study also estimates the 145 availability of wood to produce woodfuel in the region and identifies the barriers (e.g. 146 economic, education, planning) to the expansion of the woodfuel market for space and water 147 heating purposes. 148 149 2. Data and methods 150 151 2.1 Generating scenarios for the uptake of renewable heat in the domestic 152 sector by 2021 153 154 Three scenarios (business-as-usual, scenario A and scenario B) for renewable heat uptake in 155 the domestic sector were generated using several sources of data: 156 157 a) The General Register Office for Scotland for data on household projections in North East Scotland; 158 b) The IPA Energy and Water Economics report on Renewable Heat in Scotland: 2020 159 Vision to Scottish Renewables (IPA, 2009) for the Scottish housing stock in 2011, 160 and; 161 162 c) The report Off-gas consumers (Baker, 2011) for the main heating fuel by dwelling type in Scotland and the main heating fuel in North East Scotland. 163 164 In the business-as-usual scenario (BAU) it was considered that no existing or projected 165 houses would adopt woodfuel systems. Scenario A considered that detached and semi- 166 detached houses off the gas grid and 100% of the new houses built until 2021 would adopt 167 woodfuel systems. Scenario B considered that detached and semi-detached houses off the gas 168 grid and 15% of the new houses built until 2021 would adopt woodfuel systems. According 5 169 to the Department of Energy & Climate Change (2009), domestic energy consumption in the 170 UK is, on average, 1.9 tonnes of oil equivalent (toe) per year and per household (Department 171 of Energy & Climate Change, 2009). About 85% of this value (1.6 toe ≈ 20 MWh) is used for 172 space and water heating (Baker, 2011; Departament of Energy & Climate Change, 2009). It is 173 likely that domestic energy intensity for space and water heating is higher than this value in 174 North East Scotland since some parts of this region are the coolest parts of the UK. Total 175 domestic energy intensity for space and water heating in North East Scotland was obtained by 176 multiplying the domestic energy intensity by the number of existing and projected households 177 for the period 2011-2021. The year 2021 was chosen as the limit for data collection because 178 the first interim GHG emissions reduction target set by the Climate Change (Scotland) Act 179 2009 is 2020. 180 181 To estimate the potential number of houses that could install woodfuel systems in North East 182 Scotland by 2021, several assumptions were considered, taken into account several sources of 183 information. 184 185 1- The gas-grid only covers Aberdeen City and the east coast south of Aberdeen City 186 with most villages and rural areas in Aberdeenshire and Moray being off-gas grid 187 (SDC, 2005). A report on off-gas consumers (Baker, 2011) revealed that in North East 188 Scotland around 68% of the households are on mains gas and the remaining 32% on 189 other fuel types (1.1% on Liquefied Petroleum Gas (LPG) and bottled gas, 8.7% on 190 heating oil, 1% on solid fuel, 20.7% on electric heating and 0.5 % in communal 191 heating schemes. As gas is a popular, clean and convenient source of energy, and it 192 has previously been cheaper than other heating fuels, it was assumed that existing 193 houses heated by gas will be less likely to retrofit their heating systems with woodfuel 194 boiler systems than those on LPG and bottled gas, heating oil, solid fuel and electric 195 heating. 196 197 2- Space constraints can be a barrier to the installation of woodfuel boilers, especially in 198 existing flats and terraced houses. According to Baker (2011), 82% of high rise 199 purpose built flats in Scotland are heated by electricity and about 83% of the terraced 200 houses are heated by gas. Detached houses, which are free-standing residential 201 buildings, and semi-detached houses, which consist of a pair of similar houses built 202 side by side and sharing a parting wall, are not so constrained in terms of space. It was 6 203 assumed that existing detached and semi-detached houses that are not heated by gas 204 are more likely to retrofit their heating systems with woodfuel boilers because there is 205 enough room to install woodfuel boilers and to store the woodfuel needed for their 206 heat requirements. According to IPA (2009), 21% of Scottish houses were detached 207 and 23% were semi-detached houses. Around 64% of the detached houses that are not 208 heated by gas rely on oil for heating purposes and about 56% and 30% of the semi- 209 detached houses that are not heated by gas rely on electricity and oil, respectively 210 (Baker, 2011). 211 212 3- The Scottish Planning Policy 6 (SPP6) anticipates that 15% of the energy 213 requirements in large new developments with a cumulative floor space over 500 m2 is 214 to come from renewable technologies (Scottish Executive, 2007b). It was assumed 215 that all types of new houses (flats, detached, semi-detached, terraced) are less 216 constrained to install woodfuel boilers because this can be planned beforehand. 217 218 2.2 Estimation of CO2 emission savings due to the use of woodfuel systems for 219 domestic space and water heating 220 221 Unlike fossil fuel combustion which takes carbon that was locked away underground over 222 millions of years (e.g. coal, crude oil and gas) and releases it back to the atmosphere in the 223 form of CO2 emissions, wood fuel is a renewable, low-carbon source of energy. Wood fuel is 224 produced from harvested timber that has necessarily sequestered atmospheric carbon dioxide 225 (CO2) while it was growing, emits CO2 back into the atmosphere when the woodfuel is burnt 226 to produce energy, and sequesters CO2 when trees are planted again (Lattimore et al., 2009). 227 Wood fuel products are a fossil-fuel free source of energy but may not necessarily be 228 considered as an entirely carbon-neutral source because there are additional factors to take 229 into account, namely, the net changes in the carbon stored in trees, litter and soil, the fossil 230 fuels used in the harvesting, transport and processing operations, temporary variations in 231 carbon stocks and fluxes and the complete life-cycle analysis of products and systems used in 232 extraction, processing and delivery (Millar, 2004). Due to data limitations, GHG emissions 233 from woodfuel extraction, processing and delivery were not taken into account in this study. 234 Therefore, only CO2 emission savings due to the replacement of fossil fuels as a source of 235 domestic space and water heating by woodfuel were estimated. 7 236 237 Data used to estimate CO2 emission savings from woodfuel heating systems in domestic 238 dwellings in North East Scotland by 2021 for scenarios BAU, A and B included: 239 a) Carbon dioxide emissions factors per fuel type (heating oil, natural gas, electricity, 240 and wood pellets) to heat a typical house during a year (20,000 kWh.yr-1) (Table 1). 241 Fossil fuel emission factors were provided by the Biomass Energy Centre website1. 242 b) The potential number of houses that would adopt woodfuel systems by 2021, which 243 was drawn from the assumptions 1,2 (see section 2.1), and; 244 c) The main fuel used by dwelling type (flats, terraced, detached and semi-detached houses) ‘off gas’ (Baker, 2011). 245 246 247 In Scotland, existing flats, terraced houses and semi-detached houses ‘off gas’ are mainly 248 heated by electricity and detached houses ‘off gas’ are mainly heated by heating oil (Baker, 249 2011). The same was assumed for North East Scotland. 250 251 Table 1 Carbon dioxide emissions to heat a typical house in the UK (20,000 kWh.yr-1) Fuel type Electricity Hard coal Heating oil LPG Natural gas Wood chips Wood pellets 252 253 254 KgCO2yr-1 10,600 9,680 7,000 6,460 5,400 300 140 Source: Biomass Energy Centre1 255 2.3 Estimation of small round wood (diameter ≤14 cm) available to produce 256 woodfuel 257 258 One of North East Scotland’s (Aberdeen City and Shire, Moray) strengths lies in its forest 259 resources which suggest significant potential for renewable heat production (Moray 260 Community Planning Partnership, 2009; Aberdeenshire Council, 2004). In addition, the 261 proximity of forest resources, mostly within a 15 mile radius of significant settlements, is 262 seen as a supporting factor for woodfuel businesses in North East Scotland, given the lower 263 transportation costs. The Forest District Strategic Plan for Moray and Aberdeenshire 1 http://www.biomassenergycentre.org.uk/portal/page?_pageid=73,1&_dad=portal&_schema=PORTAL accessed, 10/10/2013). (last 8 264 considers the expansion in lowland broadleaved woodlands as a further development of an 265 appropriately scaled woodfuel and biomass market (Forestry Commission Scotland, 2009). 266 The Moray Community Plan 2012-2015 (Moray Community Partnership, 2012) emphasises 267 that capitalising the energy sector is a priority and points out that Moray benefits from 268 established engineering capacity and expertise to support Scotland’s development of a world- 269 leading and diversified renewable energy sector. 270 271 In Scotland, the main source of woodfuel is small roundwood from coniferous2 trees with 272 diameter (TDC) ≤14 cm. Mackay et al. (2008) estimated that only about 10% of this wood 273 has no market and is immediately available for wood energy. Small round wood from 274 thinning and felling available for woodfuel production can be derived from the sum of 275 forecast yearly thinning and felling volumes in public and private forests. The Forestry 276 Commission Scotland (FCS) and the Forest Enterprise provide data on the average annual 277 thinning plus felling volumes in cubic meters over bark for several coniferous and 278 broadleaved species from public (FCS) and private forests. Data cover the periods 2006-2099 279 for public forests (FCS) and 2009-2036 for private forests. The volume of wood is provided 280 for the following TDC ranges: 281 - Public forests (FCS): 0-7 cm, 7-14 cm, 14-16 cm, 16-18 cm and 18 -40 cm 282 - Private forests: 7-14 cm, 14-16 cm, 16-18 cm and 18 -40 cm. 283 284 In the first instance and to avoid competition with other markets for timber it was assumed 285 that the total volume available to produce woodfuel would be only 10% of the forecast 286 freshly thinned and felling volumes of conifers with diameter ≤ 14 cm. The conversion of 287 volume (m3) of fresh felled and thinned conifers into weight (kg) used the conversion factor 288 1m3 over bark = 1.06 metric ton under bark (1006 kg). 289 290 In Scotland, woodfuel grants under the Renewable Heat Incentive are for wood chip and 291 wood pellet boilers. Wood burning stoves and open fires fuelled with logs are disregarded by 292 the Renewable Heat Incentive (RHI) (Renewable Energy Forum, 2010). Wood pellets are 293 made of dry compressed wood by-products (e.g. sawdust, wood shavings, and whole tree 294 removals) and are mainly suitable for domestic use and small to medium scale district 295 heating. Woodchips are small fragments of timber mechanically chipped by machine, and are 2 Scots pine, Corsican pine, Lodgepole pine, Sitka spruce, Norway spruce, Douglas fir, Larches, other conifers. 9 296 widely used by businesses, communities and public sector organisations with larger burners. 297 As woodpellets is the type of fuel most suitable for domestic uses, it was assumed that 298 adopted boilers would be woodpellet boilers. The moisture content of woodpellets and 299 woodchips has to be taken into account when estimating the wood available to produce these 300 products. Woodpellets have lower moisture content (≈10%) than woodchips (≈30%). The 301 moisture content of conifers, the type of trees mostly used to produce woodfuel in North East 302 Scotland, is 60%, this meaning that in 1 ton of freshly felled or thinned conifers, only 40% 303 (0.4 tons) is oven dried wood (Forestry Commission, 2006). 304 305 To estimate the weight of woodpellets needed to satisfy the potential requirement of 306 renewable heat from woodfuel, it was assumed that the average energy consumption to heat a 307 typical house in the UK (20,000 KWh yr-1)3 will be fairly constant until 2021. The energy 308 content of 650 kg of pellets is 3,055 KWh (1kg=4.7KWh)4. 309 3. Results 310 311 312 3.1 Potential CO2 emissions reduction of woodpellet boilers adoption for 313 domestic space and water heating 314 315 In North East Scotland, the domestic energy consumption for space and water heating for 316 houses built during the period 2011-2021 is projected to continuously increase from 5,135 x 317 106 MWh5 in 2011 to 6,054 x 106 MWh in 2021 as a consequence of the increase in the 318 number of houses during this period. 319 320 Figure 1 presents the amount of carbon dioxide emissions (ktCO2) from space and water 321 heating from old and new houses by 2021 if no woodfuel boilers were adopted (BAU). Figure 322 2 presents CO2 emissions from space and water heating if, by 2021, existing detached and 323 semi-detached houses ‘off gas’ grid would retrofit and adopt woodfuel boilers, and all new 324 houses built between 2011 and 2021 would install woodfuel boilers. Figure 3 presents CO2 325 emissions from space and water heating by 2021 if existing detached and semi-detached 3 http://www.biomassenergycentre.org.uk/portal/page?_pageid=75,163182&_dad=portal&_schema=PORTAL (last accessed 13/09/12). 4 http://www.sustaburn.co.uk/ (last accessed 30/10/2013) 5 1 toe=11,666 KW-h. Source: General Register Office for Scotland for existing and projected houses between 2011 and 2031. 10 326 houses ‘off gas’ grid would retrofit and adopt woodpellet boilers, but only 15% of the new 327 houses built between 2011 and 2021 would install woodpellet boilers. 328 329 330 331 332 333 334 335 336 337 11 Flats 34% 30,638 flats Main fuel when off gas: Electricity CO2 emissions: 325 ktCO2yr-1 Terraced 20% 18,022 terraced houses Main fuel when off gas: Electricity CO2 emissions: 191 ktCO2yr-1 Detached 21% 18,924 detached houses Main fuel when off gas: Heating oil CO2 emissions: 132 ktCO2yr-1 Semi-detached 23% 20,726 semidetached houses Main fuel when off gas: Electricity CO2 emissions: 220 ktCO2yr-1 174,583 houses Gas CO2 emissions: 1034 ktCO2yr-1 Off gas 32% Housing stock in North East Scotland in 2021 No= 281,600 On gas 68% Figure 1 Business as usual scenario – Carbon dioxide emissions from space and water heating in 2021 if new houses and detached and semi-detached houses do not adopt woodpellet boilers 12 Off gas 32% Existing houses in 2012 No= 256,740 Housing stock in North East Scotland 27,933 flats Electricity - Do not install woodfuel boilers CO2 emissions: 296 ktCO2yr-1 Terraced 20% 16,431 terraced houses Electricity - Do not install woodfuel boilers CO2 emissions: 174 ktCO2yr-1 Detached 21% 17,253 detached houses Install woodpellet boilers CO2 emissions: 5.2 ktCO2yr-1 Semi-detached 23% 18,896 semidetached houses Install woodpellet boilers CO2 emissions: 5.7 ktCO2yr-1 174,583 houses Gas - Do not install woodfuel boilers CO2 emissions: 95 ktCO2yr-1 Flats 34% On gas 68% New houses houses in 2021 No=24,860 100% install woodpellet boilers 24,860 houses CO2 emissions: 7.5 ktCO2yr-1 Figure 2 Scenario A - Carbon dioxide emissions from space and water heating in 2021 if 100% of new houses adopt woodpellet boilers and 100% of the existing detached and semi-detached houses adopt woodpellet boilers 13 Off gas 32% Existing houses in 2012 No= 256,740 27,933 flats Electricity - Do not install woodfuel boilers CO2 emissions: 296 ktCO2yr-1 Terraced 20% 16,431 terraced houses Electricity - Do not install woodfuel boilers CO2 emissions: 174 ktCO2yr-1 Detached 21% 17,253 detached houses Install woodpellet boilers CO2 emissions: 5.2 ktCO2yr-1 Semi-detached 23% 18,896 semidetached houses Install woodpellet boilers CO2 emissions: 5.7 ktCO2yr-1 174,583 houses Gas - Do not install woodfuel boilers CO2 emissions: 95 ktCO2yr-1 Off gas 32% 6,762 houses Assuming all on electricity1 On gas 68% 14,369 houses Gas Flats 34% On gas 68% Housing stock in North East Scotland 85% do not install woodpellet boilers New houses houses in 2021 No=24,860 15% install woodpellet boilers 21,131 houses 3,729 houses CO2 emissions: 72 ktCO2yr-1 CO2 emissions: 78 ktCO2yr-1 CO2 emissions: 7.5 ktCO2yr-1 Figure 3 Scenario B - Carbon dioxide emissions from space and water heating in 2021 if 15% of new houses adopt woodpellet boilers and 100% of the existing detached and semi-detached houses adopt woodpellet boilers 14 1 2 It can be seen that the adoption of wood pellet boilers in existing detached and semi-detached 3 houses plus 15% adoption in new houses would contribute to a reduction of 30% in CO2 4 emissions in relation to the BAU scenario, by 2021. In the case of a 100% adoption of wood 5 pellet boilers in new built houses the reduction in CO2 emissions would fall about 80% in 6 relation to BAU (Figure 4). Carbon dioxide emissions resulting from the non-adoption of 7 woodfuel boilers (BAU) were estimated by taking into account that existing detached houses 8 ‘off gas’ grid would remain on heating oil (most common fuel in this dwelling type) and 9 existing semi-detached, flats and terraced houses ‘off gas’ grid would remain on electricity 10 (most common fuel in this dwelling type). 11 12 Emissions from heating (ktCO2eq) 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Emissions in 2021 (BAU) 13 14 15 16 17 18 19 20 21 Emissions in 2021 (15% Emissions in 2021 adoption in new (100% adoption in new houses) houses) Figure 4 Emissions from heating in North East Scotland by 2020 according to three different scenarios (ktCO2eq) 3.2 Availability of wood resources: the supply side Table 2 presents the forecast of freshly thinned wood from private and public forests (FCS) in 22 North East Scotland with diameter (TDC) 0-14 cm in the case of public forests and 7-14 cm 23 in the case of private forests. It was considered that only 10% of this wood would be 24 available to produce wood pellets. This volume is presented in Figure 5. 25 26 15 27 28 29 Table 2 Forecast of freshly thinned plus felled wood from Forestry Commission Scotland (FCS) and private forests and wood available for woodfuel production between 2011 and 2021 (in tonnes) 30 Years Total wood (FCS TDC 014 cm + Private TDC 7-14 cm) 10% of the wood with TDC<=14 cm 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 688,123 706,578 706,578 706,578 706,578 706,578 711,222 711,222 711,222 711,222 711,222 717,408 68,812 70,658 70,658 70,658 70,658 70,658 71,122 71,122 71,122 71,122 71,122 71,741 Amount of wood with 10% moisture content - to produce woodpellets 34,406 35,329 35,329 35,329 35,329 35,329 35,561 35,561 35,561 35,561 35,561 35,870 Source: Forestry Commission Scotland 31 32 Taking into account the moisture content of wood pellets (≈10%), it was estimated that 1 ton 33 (SI unit) of freshly thinned plus felled wood could only produce 0.5 tonnes of woodpellets. In 34 addition, because different tree species have different energy contents 6, it was assumed that 35 conifers were the main source of raw material to produce woodpellets and conifers have 36 about 60% of Moisture Content (MC). Finally, it was also assumed that only 10% of the 37 forecasted small thinned plus felled wood (TDC ≥14cm) would go to the woodfuel market. 38 Therefore, in 2021, only 35,561 tonnes of woodpellets could be produced with the wood 39 available for the woodfuel market (Figure 5). 40 6 For energy contents of tree species see website: http://www.biomassenergycentre.org.uk/portal/page?_pageid=75,163182&_dad=portal&_schema=PORTAL 16 80,000 70,000 60,000 tonnes 50,000 40,000 34,406 35,870 30,000 20,000 10,000 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 years 10% of the wood with TDC<=14 cm Amount of wood with 10% moisture content - to produce woodpellets 41 42 43 44 Figure 5 Average thinned plus felled volume available for the wood fuel market and the amount of woodpellets that could be produced with this wood (tons) 45 In the case of Scenario A (Figure 2), where 61,009 houses would install woodfuel boilers, 46 259,613 tonnes of woodpellets would be needed for space and water heating in 2021. In the 47 case of Scenario B (Figure 3) 39,878 houses would need 169,694 tonnes of woodpellets. 48 These estimates show that the woodpellets that could be produced with the available wood 49 (35,870 tonnes) would not be enough to meet the requirements of both scenarios A and B, in 50 2021. To overcome this situation more wood should be released from other markets to the 51 woodfuel market or poorer quality wood materials should be used. Poorer quality materials 52 such as stumps and roots not removed during forestry operations and with no market value 53 can potentially be accounted as significant contributors to woodfuel supply if technology to 54 use these products becomes available (Woodfuel Task Force, 2008). Branchwood is already 55 widely used in Sweden and Finland. Sawdust and wood shavings from sawmills are other 56 wood by-products that could be added to overall wood availability since these materials are 57 suitable for wood pellet production. Wood piles, abandoned in the borders of forest roads 58 near forest stands, are often seen in rural North East Scotland and are another potential source 59 of wood to produce woodfuel. The total amount of such wood waste is unknown and future 60 research is needed to assess this amount. 61 62 63 4. Discussion 17 64 In recent years, Scottish policy has been overtly supportive of renewable heat systems. There 65 has been an array of action plans, strategies and programmes recognising the contribution of 66 renewable heat to reduce GHG emissions. In North East Scotland, the promotion of 67 renewable heat systems in the domestic sector is highlighted in local strategies and single 68 outcome agreements, motivated by the abundant forest resources of the region. The 69 Aberdeenshire Council Renewable Energy Strategy (Aberdeenshire Council, 2004) asserts 70 that Aberdeenshire has considerable potential for the generation of heat from “renewable” 71 sources and that renewable energy is a necessary component of strategies to mitigate climate 72 change, address fuel poverty and promote sustainable development. The Moray & 73 Aberdeenshire Forest District Strategic Plan (2009-2013) recognise the importance of forest 74 resources for woodfuel utilisation (Forestry Commission Scotland, 2009). The Single 75 Outcome Agreement between Aberdeenshire Community Planning Partnership and the 76 Scottish Government (2009-10) shows that North East Scotland councils have been working 77 in order to create a biomass and biofuel industry through partnerships in Aberdeenshire and, 78 more throughout Europe. However, there is some evidence of a gap between political 79 ambitions and real bioenergy use in North East Scotland, as also concluded by Nybakk et al. 80 (2011) in their study about innovation in the wood bio-energy sector in Europe. If on the one 81 hand, the support from plans and strategies is evident, on the other hand, local producers 82 allege that Aberdeenshire council has been very slow at getting involved with the market and 83 getting public sector involvement in renewable energy supply chains compared to other local 84 authorities. In fact, according to Use Woodfuel Scotland website7, in 2013, only 14% of the 85 Scottish woodfuel suppliers were based in North East Scotland, with 25% in the Highlands 86 and Islands, 20% in Perth and Argyll, 23% in Central Scotland, and 18% in South Scotland. 87 88 In relation to the strategy needed to achieve higher GHG emissions reduction, the Forum for 89 Renewable Energy Development in Scotland (FREDS) believes the uptake of renewable heat 90 systems by the private sector (including domestic installations), is the optimal strategy 91 (Scottish Government, 2008). On the other hand, the Department of Energy and Climate 92 Change (DECC) believes the uptake of renewable heat by non-domestic installations (e.g. 93 businesses) is the most important strategy (Department of Energy and Climate Change, 94 2010). Further, according to Ericsson et al. (2004), individual heating systems are necessary 95 in rural areas where housing densities are too low for district heating to be possible. It is 7 http://www.usewoodfuel.co.uk/ (last accessed 30/10/2013) 18 96 mainly in these areas that high carbon-content fuels, such as heating oil, are used for heating 97 purposes. However, the financial support seems to be more directed to non-domestic 98 installations. In the past, only the Scottish Community & Household Renewable Initiative 99 (SCHRI) supported the installation of renewable heat systems in the domestic sector. This 100 initiative was only available for a three year period being followed by the Energy Savings 101 Scotland Home Renewable Grant available for the same period of time. Currently, there is 102 only the Renewable Heat Premium Payment (RHPP) supporting the installation of renewable 103 heat systems, including biomass boilers, in households. Although, the second phase of the 104 RHI, which aims at supporting the installation of renewable heat systems in households, 105 especially off the gas grid, expected to start in October 2012, it has been postponed to spring 106 2014. In the meantime the RHPP has been extended for a further year, until March 2014, to 107 provide continued support for households until the domestic RHI is introduced. The 108 discontinuities in funding of schemes may well slow down the installation of renewable heat 109 systems because of time needed to learn the new application processes and paperwork. 110 111 There are higher expectations on the uptake of renewable heat systems by the service sector 112 (commercial offices, communication, transport, education, government, health, hotel and 113 catering, retail, sport and leisure and warehouses) and communities (Department of Energy & 114 Climate Change, 2010; Scottish Government, 2011c). Schools and government buildings are 115 especially seen as an opportunity to demonstrate to the public the practical application of 116 renewable systems and to educate children on how to become advocates of ‘green energy’ in 117 the future (Department of Energy & Climate Change, 2010). Community projects have been 118 the main beneficiaries of SCRHI grants. The SCRHI funded 378 households and 146 119 community projects but the last received £3.6 million financial support compared to £673,000 120 received by households (Scottish Government, 2006). The SCRHI for communities was 121 substituted by the Community and Renewable Energy Scheme – CARES, which provided 122 £13.7 million worth of grants for community renewable projects. Currently, the Renewable 123 Heat Incentive (RHI) stimulates communities to get together and find suitable solutions for 124 local energy needs, including community-owned biomass cooperatives sourced by woodfuel 125 from sustainable local woodlands (Department of Energy & Climate Change, 2010). District 126 heating, which in certain occasions can be more cost-effective than installing individual 127 heating systems in individual properties, is also eligible for RHI. However, there is very little 128 history of community heat co-operatives in Scotland. In contrast, in Austria, the success of 129 renewable energy from biomass and rapid development of biomass district heating is believed 19 130 to be linked to high capital grants and generous subsidies available from several funding 131 sources (Reinhard, 2007; Roos, et al. 1999). However, Ericsson et al. (2004) asserts that 132 small-scale consumer (household level) reaction to government policies is different from that 133 of larger utilities and municipalities because they are constrained by the alternatives available 134 in their specific location, the low fuel flexibility of existing systems and limited information 135 about new heating schemes. In this context, scenarios A and B, generated in this study, will 136 be less likely to happen in the next years. 137 138 In fact, even with apparently strong policy support for the uptake of woodfuel heating 139 systems by the service sector, communities, and district heating, this has been slow to take off 140 in North East Scotland. In this region, by 2012, only 13 projects have been approved for a 141 total of 330 schools, 40 community centres and 499 council buildings (council offices, 142 swimming pools, libraries) existing in the region (Table 3). 143 144 Table 3 Awarded grants for biomass heating systems in North East Scotland Objective Building type Woodfuel type Financial support Macphie of Glenbervie Steam Factory Chips Scottish Biomass Scheme (SBSS) Chips Energy Savings Trust (EST); Scottish Community and Householder Renewables Initiative (SCHRI) Aboyne Academy Heat and hot water Burnot sawmill Heat School, swimming pool, library, theatre, community centre Sawmill Seaton flats Heat and hot water District Heating Scheme Dafling farm Heat Richie Hall Heat Haddo Estate Heat Aberdeen Winter Gardens Scottish Sculpture Workshop Scottish School of Forestry Tomintoul Wood CHP Foresthill Health Campus Tullynessle & Forbes Community Hall 145 146 147 148 149 ktCO2 emission savings.yr-1 Project name Commercial and residential units Community Hall District Heating Scheme Chips Support 2.1 0.6 SBSS EST; Aberdeen City Council’s Warm and Dry programme; SBSS. n.a. Chips SBSS 0.06 Pellets SBSS n.a. Chips SBSS 0.216 Chips n.a. Heat Public gardens Chips CARES n.a. Heat Public building Chips CARES n.a. Heat School Chips CARES n.a. Heat n.a. n.a. Highlands and Islands Community Energy (HICEC) n.a. Heat Hospital Chips n.a. n.a. Heat and hot water Community Hall Pellets SCHRI; Global Facility (GEF) Environment n.a. Sources: http://www.aberdeenrenewables.com; http://www.communityenergyscotland.org.uk; http://www.scotland.gov.uk. 20 150 In practice, there has also been a big discrepancy in the type of renewable energy funded by 151 the SCRHI. In private households, about 50% of the grants were awarded for solar heating 152 systems and 26% for ground source heat pumps (GSHPs). In the case of community projects, 153 the distribution of grants has been more uniform across renewable energy types. Biomass, 154 biofuels and energy from waste projects received only 10% less funding than wind turbines 155 and only less 1% than solar heating systems. This suggests that biomass systems are more 156 cost-effective in the case of community projects. 157 158 It is not known to which extent the RHI is going to stimulate the uptake of woodfuel systems 159 in the domestic market and if any of the scenarios built in this study (scenario A or scenario 160 B) will be close to the future uptake in 2021. The real challenge is to retrofit existing houses 161 with woodfuel boilers. Price differences between woodfuel boilers and heating oil boilers 162 remain large. While an oil boiler costs on average £2,000 (including VAT and excluding 163 fitting), an automatically fed wood pellet boiler for an average home costs around £11,500 164 (including installation, fuel, fuel store and 5% VAT), with the manual option being slightly 165 cheaper. An additional point to take into account is the time to pay back the investment. 166 According to the Energy Saving Trust website8, the replacement of a domestic oil boiler by a 167 wood pellet boiler would save about £280 per year in a typical three-bedroom, semi-detached 168 house with basic insulation, which means that it would take about 40 years to payback the 169 investment at current oil prices. In terms of the supply side, it is probably cheaper for 170 suppliers to produce woodchips and focus on supplying the service sector, communities and 171 district heating scheme markets. Capital and energy costs of wood pellet production, more 172 suitable for domestic use, are higher than for woodchip production. Prioritising the support of 173 woodfuel systems in the service sector may however, limit the availability of wood for the 174 domestic market. As shown before, it is likely that the round wood needed to satisfy the 175 heating requirements of existing and new built houses will be insufficient. And much less 176 would be available if the service sector starts buying the woodfuel offered by the market. Of 177 course, wood energy can compete with other markets, especially chip and oriented strand 178 board (OSB), so if the price of woodchip and wood pellet rises, wood may be freed from 179 other markets to the woodfuel market. According to Caputo (2009), woodfuel could 180 ultimately be priced out of the market if increased demand were to result in wood fibre price 181 spikes. The same author points out that the representatives of industries such as OSB often 8 http://www.energysavingtrust.org.uk/scotland 21 182 express frustration with having to compete against subsidized industries for the same raw 183 materials. 184 185 The availability of wood for woodfuel could be promoted with short rotation coppice (SRC) 186 plantation or agroforestry systems such as alley cropping, where trees are placed within 187 agricultural cropland systems. But a scoping study on private landowners’ engagement with 188 woodfuel production in Fife (Scotland) found out that farmers who have planted SRC did it 189 on low yielding land (Walker, 2009). If SRC is planted only on marginal sites, the yearly 190 volumes are likely to not be enough to satisfy high wood demand. The same study also found 191 out negative attitudes towards SRC planting, specifically poor financial profile and the 192 inability to return to agriculture due to loss of field drains (Walker, 2009). In North East 193 Scotland, the opportunity to increase wood available for the woodfuel market with SRC 194 might also be constrained by this type of attitudes. 195 196 In terms of reduced CO2 emissions, it is possible to estimate and compare emissions for two 197 different scenarios (A and B) of woodfuel boilers uptake in the domestic sector, in North East 198 Scotland. It is clear that a bigger uptake (Scenario A), would result in higher CO2 emissions 199 reduction in 2021 (Figure 4), which, could make a significant contribution towards the 200 Scottish GHG emissions reduction target (42% by 2020) and regional GHG emissions 201 reduction aspirations. Despite policy support, both at UK, Scottish and regional level, and the 202 availability of forest resources in the region, there are several barriers, both from the demand 203 and supply side. Painuly (2001) developed a framework to identify barriers to renewable 204 energy penetration. These included market failure, market distortions, economic and financial 205 barriers (e.g. high payback, small market size), technical (e.g. lack of skilled personnel and 206 training facilities), social, cultural and behavioural barriers and other barriers such as 207 uncertain governmental policies or lack of infrastructure. The revocation of the carbon 208 neutrality assumption for biomass burning emissions is another potential barrier to the 209 implementation of woodfuel systems. Although biomass has been designated as “carbon 210 neutral” in the 1996 IPCC Greenhouse Gas Inventory paper (IPCC, 1996) and by the 211 Renewable Energy Directive 2009/28/EC (RED, 2009), the idea that biogenic emissions are 212 carbon neutral has been subject to considerable criticism (e.g. Manomet Center for 213 Conservation Sciences, 2010; EEA, 2011). A carbon neutral certified product can have a 214 market advantage in relation to non-carbon neutral products. Likewise, biomass-fired plants 215 can have an advantage by receiving carbon credits, tax exemptions or subsidies from 22 216 governments. Therefore, if the “carbon neutral brand” is lost, this will potentially be a barrier 217 for the uptake of woodfuel systems because that niche of the market and other potential 218 benefits (e.g. tax exemptions) might also be lost. According to Agostini et al. (2013), the 219 carbon neutral assumption is commonly accepted for annual crops, short-rotation coppices 220 and agri-residues, wood waste, and industrial wood residues. In the case of forest bioenergy 221 (especially stemwood), the carbon emitted from combustion can actually spend a long time in 222 the atmosphere before being recaptured through biomass growth (Agostini et al., 2013). 223 224 In North East Scotland, several barriers can also limit the uptake of woodfuel systems. Up- 225 front capital costs are usually higher for renewable heating technologies than for other 226 comparable fossil-fuel equipment, for example heating oil and this is a major barrier for 227 adoption of woodfuel systems (Scottish Government, 2008; Scottish Executive, 2007a). Not 228 only are wood energy boilers very expensive, but also there is a need for storage systems for 229 wood pellets or wood chips and in some situations for pumps to link dispersed homes to the 230 main boiler. The high capital costs can be aggravated if storage systems are badly designed, 231 this being pointed out as one of the causes of failure in the success of woodfuel heating 232 systems. Maker (2004) stated that one of the most important tasks in putting together a 233 successful biomass system is building a fuel storage facility that will meet both the immediate 234 and long-term needs of the system, the owners, and the operators. 235 236 Woodfuel is still an infant industry in North East Scotland. The supply chain is poorly 237 developed and the absence of a viable market for small round wood from young coniferous 238 plantations is an obstacle to the development of the sector. Several sources (Woodfuel Task 239 Force, 2008; Scottish Executive, 2007a; Millar, 2004), mention the lack of a developed 240 market for biomass and the difficulty in assessing of biomass availability. The lack of a 241 developed wood supply chain may constrain the uptake of woodfuel systems by individual 242 households. In the opposite hand, larger estates, which have a long tradition of forestry 243 (WEAG, 2012) and security of wood supply, are likely to have a higher uptake of these 244 systems. 245 246 The Woodfuel Task Force Report (Woodfuel Task Force, 2008) also suggests that there is no 247 regulation or effective and integrated planning. The regulatory and support system remains 248 too slow and unresponsive to meet the needs. If an oil boiler breaks down and needs 249 replacing, the slow turnaround on grant applications and the delays in planning and 23 250 installation makes it less likely that a woodfuel solution will be adopted. To aggravate the 251 situation, there are few trained boiler installers and few maintenance personnel able to give 252 good technical advice (IPA, 2009; Scottish Government, 2008). The FREDS Renewable Heat 253 Group (Scottish Government, 2008) argues that the installation of renewable heat 254 technologies depends on appropriate knowledge and skills and recognises that training 255 availability is currently limited. The Micro-generation Certification Scheme, which 256 certificates micro-generation technologies used to produce heat from renewable sources, is 257 considered a barrier to the development of the market because of the costs and limited 258 number of locations where training occurs (IPA, 2009). The low number of trainees leads to 259 lower competition and high installation costs. In terms of undergraduate studies, in North 260 East Scotland, the University of Aberdeen offers a taught programme on renewable energy 261 but this is not specific to biomass energy production and development. 262 263 The Renewable Energy Forum considers that the current costs are high and that the outcomes 264 of the RHI are highly uncertain and will expose the consumer to high energy costs for 265 conventional energy. The Forum believes that if the funding mechanism for the RHI is a levy 266 on fossil fuel, fuel poverty in rural areas will increase because fuel poor and rural heat 267 consumers will not normally be able to invest in RHI eligible technologies. This will cause a 268 net transfer from poorer to richer consumers who can afford to adopt renewable heat 269 technologies (Renewable Energy Forum, 2010). 270 271 There is also high competition in the woodfuel market. Balcas, a woodpellet manufacturing 272 facility based at Invergordon, North of Inverness, with support from Highlands and Islands 273 Enterprise, is a significant competitor for local woodfuel producers. The plant has an output 274 capacity of 100,000 tonnes per annum which is equivalent to the woodfuel needed to heat 275 20,000 households during the same period. The Biomass Action Plan for Scotland (Scottish 276 Executive, 2007a), considers this as “giant leap forward in biomass development” but small 277 woodfuel producers view Balcas with apprehension because such a significant degree of 278 market power can undercut them. The implications are positive for supply, notwithstanding 279 the risks of concentrated market power. 280 281 Finally, although there are reasonable forest resources for the production of woodfuel, these 282 may not be always available because of high costs of harvesting machinery in the case of 283 difficult work terrain and small-scale and fragmented woodland plots (Woodfuel Task Force, 24 284 2008). Costs of extraction are lower in lowland areas which become more favourable for 285 planting short rotation coppice (SRC) than hills. However, this may raise concerns that 286 biomass production displaces food production, unless poorer quality agricultural land is used. 287 The European Environment Agency (EEA) Scientific Committee on greenhouse gas 288 accounting in relation to bioenergy called attention to this issue and recommended the 289 revision of the European Union regulations and policy targets to encourage the reduction of 290 GHG emissions with bioenergy only when there is additional biomass and other ecosystems 291 services such as fibre production and food provision are not displaced (EEA, 2011). 292 293 On the supporting side, the expected increases in oil prices in the future compared to 294 woodfuel prices, linked to the availability of local resources, could support prospects for 295 further development in woodfuel markets in North East Scotland. 296 297 298 299 5. Conclusion 300 Adoption of renewable heating for space and water purposes is expected to rise in the next 301 few years due to an increase in the number of projected new houses (Figure 1). The increase 302 in the number of new houses and the requirements of the Scottish Planning Policy 6 (SPP6) 303 (Scottish Executive, 2007b) in terms of renewable technologies, anticipate an increase in the 304 demand of woodfuel for space and water heating, in addition to high fuel prices. For 305 scenarios A and B (Figures 3 and 4), 10% of the small roundwood produced annually in the 306 region would not be enough to satisfy the potential demand for woodfuel by 2021. To satisfy 307 the potential demand for woodfuel needed to heat the number of households assumed in these 308 two scenarios, wood for fuel would have to be released from other markets. Planting short 309 rotation coppice on high productivity sites, implementing agroforestry systems (as for 310 example alley cropping), or changing forest management strategies to increase yields could 311 also increase the amount of wood available for woodfuel production. Carbon dioxide 312 emissions reduction from the adoption of woodfuel systems would be significant compared to 313 non-adoption (Figure 5) and this would contribute to the Scottish 2020 GHG emissions 314 reduction target. 315 sequestration, biodiversity conservation, soil enrichment, erosion and air and water quality 316 can also be promoted through the integration of trees and crops (agroforestry). Apart from woodfuel production, important benefits such as carbon 25 317 Even though wood energy systems remain the object of much attention and a degree of public 318 support, the actual state of developments to date in North East Scotland suggests that 319 household demand will remain modest, unless the RHI offers substantial incentives when it is 320 finally launched. Industry and public sector use are likely to be the major beneficiaries of 321 support. Further, the high cost of pellet-based heating systems for the household means that 322 any financial support derived from non-renewable fuel use will compound fuel poverty and 323 offer opportunities only for the well-off. This is the trade-off for setting up different policy 324 targets independently (renewable energy target, GHG emissions reduction target, fuel poverty 325 reduction target) rather than integrating them all. 326 327 Some of the barriers for the adoption of woodpellet boilers could possibly be mitigated if 328 some additional thought and finance are made available. Financial support should go into 329 training programmes, better planning and better designed storage systems for woodfuel. 330 Constraining factors such as high capital costs, weak supply chains and uncertainty are more 331 difficult to overcome. In terms of capital costs and development of the supply chain, it can be 332 questioned whether government incentives are sufficient to promote significant adoption of 333 woodfuel boilers. Capital costs for households would certainly go down in time if the demand 334 for this type of heating system grows. But a rise in oil and electricity costs would potentially 335 drive consumers to a market solution (e.g. wood-burners with logs) even with a high upfront 336 capital cost. 337 338 North East Scotland comprises a useful ‘laboratory’ in which to consider the opportunities for 339 renewable heat production from woody biomass. It has an abundant forest resource but an 340 incipient rather than a developed supply system. However, the experiment to date has been 341 only moderately successful, in spite of efforts made by the public sector to stimulate growth. 342 A rapidly changing policy support system and long delays in developing and implementing 343 policy have cast a shadow over the sector’s development and the opportunities in the 344 household sector remain constrained. Further, current funding mechanisms seem highly 345 likely to compound fuel poverty and offer subsidised greening of heat energy supply to 346 affluent households. 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