Rising Energy Costs v Wood Chip Fuel

Posted on October 27, 2022.

Rising costs of electricity, oil and gas continue to make wood chip an attractive option and choosing wood fuel to heat homes is a sustainable choice. Especially for those heat users who are already registered with the Renewable Heat Incentive (RHI).

With the wholesale price of conventional energy continuing to rise, wood chip has become the cheapest form of fuel for domestic and commercial operations. Wood fuel is a natural, sustainable, and carbon-efficient source of energy.

Comparative Energy Prices

This heating fuel comparison chart, updated in October 2022, makes a strong case for using your wood chip fired biomass boilers as much as possible. 

Fuel Chip Ltd are already assisting several clients with servicing and repairing biomass boilers. Some of these were secondary or backup boilers, but are now needed as primary boilers, given the recent energy price increases.  Some clients with boilers set up for wood pellet are converting them to now burn the much cheaper, and locally sourced, wood chip.

Wood chip is now by far the cheapest heating fuel, regardless of whether you are receiving RHI payments or not – see the following chart.

Notably wood pellet prices have seen a massive price increase worldwide. Demand for wood pellets has increased in the UK and across Europe, as people try to decarbonise. In addition, there is a shortage in supply, as many of the imported pellets were of Russian origin and are, understandably, no longer available. This increased demand and shortage of supply has led to the rising prices.

Do contact us, as soon as possible, if you require assured wood chip supply this winter. We have seen a large increase in demand and will be prioritising existing clients as always, and new clients on a first come first committed basis.

The following chart, sourced from various energy sites, showing approximate output costs, in pence per kWh:

Why choose wood fuel

Wood is an abundant natural resource and producing wood fuels can boost local jobs and support rural communities. Wood fuel is a good option and there are many reasons to choose wood:

  • Wood fuel can save on the cost of heating, especially with the RHI scheme’s financial payments, making wood fuel an attractive long term option.
  • Modern wood burning technology is very efficient and can be applied to single room heating all the way up to large scale community projects.
  • Wood is a low carbon fuel, especially when paired with the right technology ie efficient wood burners, although any fuels are better the more efficient the boilers are.
  • Wood chip is easily available, and our Fuel Chip is a by-product of tree clearance works by our sister company, Practicality Brown, where the uneconomic tree crops are chipped for wood fuel.
  • All Fuel Chip woodchip is UK locally sourced.
  • Wood chip is a sustainable source of energy because each tree that is harvested can be replanted to grow the next crop.

There’s more about the RHI here

Reliable Wood Chip Supply

We offer customised energy service contracts covering fuel supply and maintenance appropriate to each client’s circumstances and requirements:

  • Fixed Term Wood Chip Fuel Supply Contracts with guaranteed supply and price.
  • Ad hoc supply of force dried wood chip based on clients pre-advised seasonal usage volumes. Guaranteed supply but spot market price (not fixed). Most of our clients have recently chosen this option.

Contact us for more details. Call 01753 657280 or email sales@fuelchip.co.uk

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