Stephen Kerr: Written Answers (149)

Written Question

Biofuels: Subsidies

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, on what basis levels of biomass subsidies have been set under the (a) Renewables Obligation Certificate, (b) Contracts for Difference, (c) Feed in Tariff and (d) Domestic and Non-Domestic Renewable Heat Incentive; and if he will make a statement.

Answered by Claire Perry

The basis on which levels of support provided to biomass technologies is calculated varies according to each scheme.

(a) Legislation[1] requires a series of factors to be taken into account when setting Renewables Obligation (RO) support levels, including the generation costs and revenues for each technology; the desirability of securing long-term growth and industry viability as well as costs to consumers and impacts on the market for Renewable Obligation Certificates. The most recent comprehensive review of RO support levels was completed in 2012[2].

(b) Strike prices awarded to successful projects in Contracts for Difference (CfD) allocation rounds are determined through a competitive bidding process[3]. Strike prices for biomass projects that were awarded contracts under the Financial Investment Decision Enabling for Renewables programme, an early form of CfDs, were set out in the Electricity Market Reform Delivery Plan and Annex B: Strike Price Methodology [4].

(c) In the last review of Feed-in Tariff levels for Anaerobic Digestion projects undertaken in 2016[5], a return on investment of 9.1% was assumed.

(d) Renewable Heat Incentive (RHI) tariffs are set to compensate generators for the added cost of renewable heating, over and above what would have been paid otherwise. For a given installation, the lifetime cost of the renewable technology and the alternative system (e.g. oil boiler) are considered. The RHI tariff is then set using an economic model so that the rate of return targeted for the applicant population is achieved over the full lifetime of the heating system.

[1] Section 32D(4) of the Electricity Act 1989, as amended by the Energy Act 2008.

[2] Renewables Obligation consultation at: https://www.gov.uk/government/consultations/renewables-obligation-banding-review

[3] https://www.gov.uk/government/publications/contracts-for-difference/contract-for-difference

[4] Electricity Market Reform Delivery Plan and Strike Price Methodology Annex: https://www.gov.uk/government/publications/electricity-market-reform-delivery-plan

[5] https://www.gov.uk/government/consultations/review-of-support-for-anaerobic-digestion-and-micro-combined-heat-and-power-under-the-feed-in-tariffs-scheme

Written Question

Biofuels: Subsidies

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, how many recipients of biomass subsidy payments there have been under the (a) Renewables Obligation Certificate, (b) Contract for Difference, (c) Feed in Tariff and (d) Domestic and Non-Domestic Renewable Heat Incentive in each of the last five years.

Answered by Claire Perry

The number of individual installations in receipt of biomass support payments in each of the last five financial years is shown in the table. The table includes data for technologies supported by these schemes which generate electricity, heat or Combined Heat and Power from biomass, which is material derived directly or indirectly from plant or animal matter, fungi, algae or bacteria, including wastes and residues of biological origin. The biomass technologies eligible for support under each scheme are set out in the relevant legislation and guidance.

	2013/14	2014/15	2015/16	2016/17	2017/18
Renewables Obligation[1]	674	709	737	855	753
Contracts for Difference	0	0	0	1	1
Feed-in Tariff	83	166	249	365	409
Renewable Heat Incentive	3,416	15,663	24,145	26,701	28,497

[1] The Renewables Obligation figures are based on Ofgem’s certificate report as at 23/08/2018 from their Renewables and CHP Register.

Written Question

Biofuels: Timber

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the cost to the public purse of subsidies provided to renewable technologies burning wood for fuel under the (a) Renewables Obligation Certificate, (b) Contract for Difference, (c) Feed in Tariff and (d) Domestic and Non-Domestic Renewable Heat Incentive in each of the past five years.

Answered by Claire Perry

The estimated cost of support to renewable technologies burning wood for fuel under three of the schemes in each of the last financial years is shown in the table to the nearest million pounds (in nominal prices). Wood burning is not supported by any technology eligible for support under the Feed-in Tariff scheme.

	2013/14	2014/15	2015/16	2016/17	2017/18
Renewables Obligation[1]	£441m	£678m	£853m	£767m	£520m
Contracts for Difference	0	0	0	£92m	£544m
Renewable Heat Incentive[2]	£50m	£138m	£239m	£295m	£408m

For the Renewables Obligation, information is not available on the value of support specifically for renewable technologies burning wood. Therefore, the figures provided are the support for technologies capable of burning wood, but other biomass fuels may have been used. The figures for the Contracts for Difference reflect total payments, including to biomass projects, made during the first two financial years of the scheme’s operation and reported by the Low Carbon Contracts Company, the scheme administrator, in its annual reports. Payments by technology type are not reported separately. Wood fuel burning is subsidised under the Domestic RHI biomass tariff and the Non-domestic tariffs for biomass and solid biomass CHP. This assumes all fuel for CHP is wood, as it is not possible to disaggregate wood fuel for CHP. Other types of solid biomass fuel are also eligible for RHI CHP support.

[1] The Renewables Obligation figures are based on Ofgem’s certificate report as at 23/08/2018 from their Renewables and CHP Register.

[2] The actual spend may be different, due to delayed submission of meter readings.

Written Question

Biofuels: Timber

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what estimate he has made of the (a) volume and (b) proportion of domestic wood production that has been used for fuel purposes in each of the last five years.

Answered by David Rutley - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)

The Forestry Commission published these data in ‘Forestry Statistics 2018’.

Table 1	Deliveries of UK grown softwood, 2013-2017

	thousand green tonnes
Year	Woodfuel	Deliveries to all markets	% of total deliveries used by energy markets
2013	1,250	10,547	12
2014	1,500	10,903	14
2015	1,600	10,265	16
2016	1,550	10,419	15
2017	1,600	10,478	15

Source: industry surveys, industry associations.

Notes:

Woodfuel derived from stemwood. Includes estimates of roundwood use for biomass energy. The figures are estimated by the Expert Group on Timber and Trade Statistics, and make use of wood fuel data reported in the Private Sector Softwood Removals Survey.
Includes shavings and poles. Quantities for some uses are estimates by the Expert Group on Timber and Trade Statistics.

Table 2	Deliveries of UK grown hardwood, 2013-2017
	thousand green tonnes
Year	Woodfuel	Deliveries to all markets	% of total deliveries used by energy markets
2013	400	532	75
2014	400	537	74
2015	400	566	71
2016	400	597	67
2017	600	738	81

Source: industry surveys, industry associations.

Notes:

Figures are based on processing industries' purchases of hardwood grown in the UK and estimates for woodfuel and other uses.
Woodfuel reported here is derived from stemwood and includes estimated roundwood use for biomass energy.
The apparent increase woodfuel from 2016 to 2017 reflects a new estimate of the level of hardwood deliveries for woodfuel and should not be interpreted as an increase in a single year. This figure is currently under review.

Other includes round fencing and roundwood exports.

Written Question

Timber

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what estimate he has made of the available supply of UK-sourced virgin and waste wood that has been used for (a) wood panel manufacturing, (b) sawmill products, (c) paper manufacturing and (d) wood fuel in each of the last five years.

Answered by David Rutley - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)

This data is published in Forestry Statistics 2018.

Table 1	Inputs to Wood-based Panel Mills, 2013-2017
thousand green tonnes
Year	UK roundwood¹	Sawmill products	Imports²	Recycled wood fibre^3,4	Total
2013	1,263	1,709	0	853	3,825
2014	1,283	1,809	0	812	3,904
2015	1,334	1,687	17	852	3,890
2016	1,248	1,749	39	838	3,874
2017	1,059	1,726	22	923	3,730

Source: Forestry Statistics 2018 (Forestry Commission, September 2018),

based on data from: Wood Panel Industries Federation

Notes:

UK roundwood derived from stemwood.
Imports include roundwood, wood products and products from imported wood.
Recycled wood fibre is wood fibre recovered from both pre- and post-consumer wood waste for use in woodbased panel production. It comprises wood originally grown in the UK and wood originally grown in forests outside the UK.
Quantities are as delivered, with an assumed average moisture content of 25%. To convert to green tonnes (assuming moisture content of 52%), multiply by 1.56.

Table 2	Inputs to Wood-based Panel Mills, 2013-2017
thousand green tonnes
Year	UK roundwood¹	Sawmill products	Imports²	Recycled wood fibre^3,4	Total
2013	1,263	1,709	0	853	3,825
2014	1,283	1,809	0	812	3,904
2015	1,334	1,687	17	852	3,890
2016	1,248	1,749	39	838	3,874
2017	1,059	1,726	22	923	3,730

Source: Forestry Statistics 2018 (Forestry Commission, September 2018),

based on data from: Wood Panel Industries Federation

Notes:

UK roundwood derived from stemwood.

Imports include roundwood, wood products and products from imported wood.

Recycled wood fibre is wood fibre recovered from both pre- and post-consumer wood waste for use in woodbased panel production. It comprises wood originally grown in the UK and wood originally grown in forests outside the UK.

Quantities are as delivered, with an assumed average moisture content of 25%. To convert to green tonnes (assuming moisture content of 52%), multiply by 1.56.

Table 3 Inputs for the integrated pulp & paper mills¹, 2013-2017
thousand green tonnes
Year	UK roundwood²	Sawmill products	Total
2013	465	83	548
2014	465	97	562
2015	435	101	536
2016	423	82	505
2017	442	61	503
Source: Forestry Statistics 2018 (Forestry Commission, September 2018),
based on data from: UK Forest Products Association

Notes:

Excludes inputs of recycled paper and cardboard. All inputs are softwood.

UK roundwood derived from stemwood.

Table 4	Inputs for woodfuel¹, 2013-2017
Thousand green tonnes
Year	UK roundwood^1,2	Sawmill products³	Recycled wood^4,5,6	Total
2013	1,650	302	830	2,782
2014	1,900	439	1,340	3,679
2015	2,000	534	1,450	3,984
2016	1,950	624	1,550	4,124
2017	2,200	705	1,660	4,565

Source: Forestry Statistics 2018 (Forestry Commission, September 2018),

based on data from: industry surveys, industry associations, Wood Recyclers Association.

Notes:

Woodfuel derived from stemwood. Includes estimates of roundwood use for biomass energy. The figures are estimated by the Expert Group on Timber and Trade Statistics, and make use of wood fuel data reported in the Private Sector Softwood Removals Survey.

The apparent increase in woodfuel from 2016 to 2017 partially reflects a new estimate of the level of hardwood deliveries for woodfuel and should not be interpreted as an increase in a single year. This figure is currently under review.

Material reported as sales/use for woodfuel by sawmills and round fencing manufacturers, but may have been used for other purposes.
Post consumer recovered wood, comprising wood originally grown in the UK and wood originally grown in forests outside the UK.
Figures for 2014 to 2017 relate to capacity, rather than consumption.
Quantities are as delivered, with an assumed average moisture content of 25%. To convert to green tonnes (assuming moisture content of 52%), multiply by 1.56.

Written Question

Timber

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the environmental effect of burning wood as an energy fuel source; and if he will make a statement.

Answered by Thérèse Coffey

Domestic wood and coal burning are the single largest contributors to our harmful particulate matter (PM) emissions. These sources accounted for 38% of total PM_2.5 emissions in 2016 and are forecast to account for 41% by 2020. A wood burning stove can emit more PM than a diesel HGV or passenger car.

On 22 May 2018 we published our draft Clean Air Strategy for England for consultation. The strategy includes plans to introduce new environmental legislation which will ensure only the cleanest domestic fuels will be available for sale and only the cleanest stoves will be available to buy and install in England. Cleaner fuels and stoves produce less smoke, less soot and more heat.

On 17 August 2018 we published a further detailed consultation on our proposals to phase out sales of the most polluting domestic fuels in England.

Ahead of introducing new legislation my Department has been working with industry sectors to introduce voluntary initiatives. This has seen the introduction of Ecodesign Ready labelling by the stove industry in February 2017, which brings in emission standards ahead of the EU Regulatory deadline of 2022.

We have also worked with the wood fuel industry on the Ready to Burn scheme which was launched in autumn 2017 (https://www.readytoburn.org/). The scheme informs consumers about the importance of using clean, quality wood-fuel to improve air quality which will reduce harmful emissions.

In addition, my Department has also been working with other industry sectors, such as chimney sweep organisations to provide advice to consumers in their own homes. This has resulted in an informative website (https://burnright.co.uk/) which provides clear advice on the procedures to follow when lighting a stove to minimise smoke emissions.

The UK uses internationally agreed sustainable forest management principles to ensure that only sustainably sourced wood – from both domestic and international suppliers - is used as fuel. Around 42% of woodland in the UK is currently not under active management, and increased demand for wood fuel is helping to bring more woodland into active management under the UK Forestry Standard, which helps to drive improved habitats and biodiversity, as well as improved tree health and increased resilience to climate change.

Written Question

Timber

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of trends in the price of (a) virgin and (b) waste wood in the last five years; and if he will make a statement.

Answered by David Rutley - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)

The Forestry Commission publish timber prices indices based on sales of sawlogs and standing timber from the public forest estate. No assessment of trends in the price of waste wood is made.

The Forestry Commission Timber Price Indices are available online: https://www.forestresearch.gov.uk/tools-and-resources/statistics/statistics-by-topic/timber-statistics/timber-price-indices/

Written Question

Timber

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what estimate he has made of the (a) volume and (b) proportion of (i) virgin wood and (ii) waste wood used in the UK in each of the last five years; and what proportion of each were (A) domestically produced and (B) imported.

Answered by David Rutley - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)

UK production, imports, exports and apparent consumption are shown in Table 1. Around 80% of wood used in the UK is imported. The volume of waste wood delivered to market is shown in Table 2. Data on the volume and proportion of recycled [waste] wood used over the last 5 years that has been imported is not held. The majority of wood and wood products imported are made from virgin wood.

Table 1. Volume of wood consumed in the UK (millions of cubic meters of Wood Raw Material Equivalent).

Year	UK production²	Imports	Exports	Apparent consumption	% of wood consumed that is imported
2013	10.8	42.2	6.2	46.8	77
2014	11.2	47	4.8	53.4	79
2015	10.6	49.3	4.1	55.8	81
2016	10.8	49.6	3.8	56.5	81
2017	10.9	50.3	4.2	57	81

Table 2. Deliveries of recycled wood to wood processing and energy markets.

	Total deliveries of recycled wood (thousands of tonnes)	Deliveries of recycled wood (thousands of tonnes) used in panels production	Deliveries of recycled wood (thousands of tonnes) used for woodfuel
2013	1,683	853	830
2014	2,152	812	1,340
2015	2,302	852	1,450
2016	2,388	838	1,550
2017	2,583	923	1,660

Source: Forestry Statistics 2018 (Forestry Commission, September 2018)

Based on data from: industry surveys, industry associations, UK overseas trade statistics (HM Revenue & Customs) and conversion factors to Wood Raw Material Equivalent (WRME)

Notes:

Excludes recovered paper.
UK production of roundwood is estimated from deliveries to wood processing industries and others.

Written Question

Timber

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, when the security of wood supply in the UK will reach its peak based on current levels of new forestry planting; and if he will make a statement.

Answered by David Rutley - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)

The Forestry Commission publish availability forecasts for softwood and hardwood. The proportion of this resource that reaches market will depend on market conditions and the wishes of those that own woodland. In the period 2013 – 2016 annual softwood production varied between 13 and 14 million m³ over bark standing compared to a forecast availability of 16.5 millon m³over bark standing. Softwood production in 2017 was 13.3 million m³ over bark standing compared to a forecast availability of 17.1 million m³ over bark standing.

The 2014 forecast of softwood availability for the forest estate in Great Britain is an average of 15.2 million m³ over bark standing per annum over the next 50 years. This availability exceeds current production levels. Current forecasts do not take into account timber that will become available from woodlands that have been recently established and will be established in the near future.

Softwood availability is forecast to reach 18.4 million m³ over bark standing in the period 2027 – 2031. Hardwood availability is forecast to reach 3 million m³ over bark standing in 2042 – 2046. Current forecasts do not take into account timber that will become available from woodlands that have been recently established and will be established in the near future.

Table 1	Roundwood availability forecasts
thousand cubic metres overbark standing
Annual average in the period	England	Wales	Scotland	Great Britain
Total softwood
2013 - 2016	4,577	1,983	9,928	16,487
2017 - 2021	4,555	1,940	10,656	17,151
2022 - 2026	4,113	1,982	11,346	17,442
2027 - 2031	4,145	1,553	12,700	18,398
2032 - 2036	3,916	1,670	12,062	17,649
2037 - 2041	3,237	1,473	11,069	15,779
2042 - 2046	2,903	1,021	9,257	13,181
2047 - 2051	2,537	1,106	8,266	11,909
2052 - 2056	2,259	1,229	8,566	12,054
2057 - 2061	2,853	1,373	7,966	12,193
Total hardwood
2013 - 2016	249	32	92	373
2017 - 2021	425	58	148	631
2022 - 2026	648	94	203	945
2027 - 2031	806	112	244	1,162
2032 - 2036	923	130	277	1,330
2037 - 2041	1,176	171	391	1,738
2042 - 2046	2,104	299	616	3,019
2047 - 2051	1,795	246	715	2,755
2052 - 2056	1,388	227	599	2,214
2057 - 2061	791	167	406	1,364

Source: National Forest Inventory: 50-year forecast of softwood availability (Forestry Commission, April 2014), National Forest Inventory: 50-year forecast of hardwood availability (Forestry Commission, April 2014)

Notes:

The estate of the Forestry Commission and Natural Resources Wales is assumed to be managed according to current management plans; note both Forestry Commission Scotland and Natural Resources Wales intend to cap production below the level set out in this table.
For softwood, private woodland is assumed to be managed in a way that maximises total production.

More recent softwood availability forecasts, covering a 25 year period only, are available from the NFI web pages at:

www.forestresearch.gov.uk/tools-and-resources/national-forest-inventory/

In private woodland, hardwood harvesting is assumed to be limited to areas with evidence of recent thinning activity. If these woodlands were managed to maximise total production, the forecast would be much higher, as illustrated in the full National Forest Inventory report available at:

www.forestresearch.gov.uk/tools-and-resources/national-forest-inventory/

An update to these figures is due to be published in 2020.

To convert ‘overbark standing’ into green tonnes multiply by 0.818 (for softwood) and by 0.900 (for hardwood).

Written Question

Timber

Tuesday 16th October 2018

Asked by: Stephen Kerr (Conservative - Stirling)

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what estimate he has made of the (a) proportion and (b) volume of domestic forestry stock being sold in the UK in the next 10 years.

Answered by David Rutley - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)

Table 1	Roundwood availability forecasts
thousand cubic metres overbark standing
Annual average in the period	England	Wales	Scotland	Great Britain
Total softwood
2013 - 2016	4,577	1,983	9,928	16,487
2017 - 2021	4,555	1,940	10,656	17,151
2022 - 2026	4,113	1,982	11,346	17,442
2027 - 2031	4,145	1,553	12,700	18,398
2032 - 2036	3,916	1,670	12,062	17,649
2037 - 2041	3,237	1,473	11,069	15,779
2042 - 2046	2,903	1,021	9,257	13,181
2047 - 2051	2,537	1,106	8,266	11,909
2052 - 2056	2,259	1,229	8,566	12,054
2057 - 2061	2,853	1,373	7,966	12,193
Total hardwood
2013 - 2016	249	32	92	373
2017 - 2021	425	58	148	631
2022 - 2026	648	94	203	945
2027 - 2031	806	112	244	1,162
2032 - 2036	923	130	277	1,330
2037 - 2041	1,176	171	391	1,738
2042 - 2046	2,104	299	616	3,019
2047 - 2051	1,795	246	715	2,755
2052 - 2056	1,388	227	599	2,214
2057 - 2061	791	167	406	1,364

Notes:

The estate of the Forestry Commission and Natural Resources Wales is assumed to be managed according to current management plans; note both Forestry Commission Scotland and Natural Resources Wales intend to cap production below the level set out in this table.
For softwood, private woodland is assumed to be managed in a way that maximises total production.

More recent softwood availability forecasts, covering a 25 year period only, are available from the NFI web pages at:

www.forestresearch.gov.uk/tools-and-resources/national-forest-inventory/

In private woodland, hardwood harvesting is assumed to be limited to areas with evidence of recent thinning activity. If these woodlands were managed to maximise total production, the forecast would be much higher, as illustrated in the full National Forest Inventory report available at:

www.forestresearch.gov.uk/tools-and-resources/national-forest-inventory/

An update to these figures is due to be published in 2020.

To convert ‘overbark standing’ into green tonnes multiply by 0.818 (for softwood) and by 0.900 (for hardwood).

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