Save money. Earn income. Go green.

South East Wood Fuels Ltd

A leading supplier of high quality wood fuels

Saving money through use of a wood fuel heating system

Wood chip fuel typically costs less than oil, liquid petroleum gas (LPG) or domestic natural gas. In early 2018 wood chip was up to 50% cheaper, depending on the volume of fuel. See the table below.  These savings, along with the contribution from the Renewable Heat Incentive (RHI) can help pay back extra costs for biomass boiler systems. Our consultancy team (Vert Energy Associates) can quickly assess design and financial viability options if you have a suitable project.

Wood fuel is also locally sourced and can provide long term energy security, independent of activities in the Middle East or Russia.

Earning income through wood fuel in partnership with the Renewable Heat Incentive

The government’s Renewable Heat Incentive (RHI) scheme offers a 20-year index-linked payment for commercial and institutional organisations opting to shift away from oil, gas and electricity to renewable heat technologies such as wood pellet and wood chip boiler systems, and other heat technologies such as heat pumps. Domestic RHI users get payments for 7 years.

These technologies are being used successfully by thousands of organisations across the UK. Modern wood heating integrates with your existing heating system but displaces oil and gas to save fuel costs AND attracts the RHI tariff.

Since September 20th 2017, the RHI tariffs for non-domestic wood heating systems have been up to 2.96p/kWh (up to 35% of annual hours) and 2.08p/kWh after that. Domestic biomass systems currently attract 6.54p/kWh for 7 years.

Wood chip costs 1.5 to 3.5p/kWh (depending on the type of chip and volumes). For arb residues and waste wood, wood chip is the cheapest fuel in the UK. Wood pellet fuel costs 3.5 to 4.5p/kWh. Add these fuel savings to the RHI income and you have potentially a great business case to make the switch.

Providing a sustainable fuel option for your heating

Wood or ‘biomass’ is a sustainable fuel which provides heat, hot water and energy at all scales. Moreover, wood fuel is considered to be ‘carbon lean’, meaning that each tree absorbs the same amount of carbon dioxide when growing as it releases when burned. It is only the minimal amounts of fossil fuel used in processing and transportation that makes it carbon ‘lean’ rather than carbon neutral.

When a woodland area is managed in a sustainable manner new tree growth absorbs atmospheric carbon dioxide, offsetting that released by burning wood. The overall contribution to atmospheric CO2 levels is hence minimal.

The rapid development of a biomass wood fuel market for boilers has generated substantial additional income across the UK, and led to much greater management of hitherto neglected woodlands across the South East and the whole of the UK. This additional income allows owners to invest in their woodland, plant new trees and improve biodiversity.

Fuel Price per unit kWh per unit pence per kWh
Wood chips (30% MC) £100 per tonne 3,500 kWh/t 2.9p/kWh
Wood pellets £200 per tonne 4,800 kWh/t 4.2p/kWh
Natural gas 4.8p/kWh 1 4.8p/kWh
Heating oil 60p per litre 10 kWh/ltr 6.0p/kWh
LPG 50p per litre 6.6 kWh/ltr 7.6p/kWh
Electricity 14.5p/kWh 1 14.5p/kWh
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