Wood fuel costs

Wood is a very cost-competitive fuel with the less processed forms such as logs and chips typically undercutting all other domestic fuels. The downside is that the equipment to burn them is usually considerably more expensive than that for fossil fuels. However, with the recent introduction of various grant schemes to help with these capital costs the scales are more balanced, particularly as the variable costs are lower and more predictable. Oil prices, in particular, are very volatile whereas woodfuel costs are stable and may be fixed in long-term contracts. Another big advantage for wood fuel is that it must be sourced locally to be cost effective, ensuring that money spent on fuel stays local rather than going to offshore petrochemical multinationals.

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