Boston, MA (PressExposure) April 03, 2011 -- Investment news and analysis portal, Alternative Asset Analysis (AAA), has stated its support for the Forestry Commission's decision to introduce a grant to boost wood fuel production in the UK.
In a move that the AAA claims could act as a "major boost to the British forestry industry," the Forestry Commission is offering grants of up to 60 per cent to boost wood fuel productivity.
The Woodfuel Woodland Improvement Grant (WWIG) is intended to help encourage investment in UK forestry for the purpose of producing wood fuels. The grant is being introduced as part of the Renewable Heat Incentive (RHI) - a wider government scheme that intends to provide financial incentives to encourage the production and use of renewable sources in the heating of homes and businesses across the British Isles.
As the prices of fossil fuels continue to rise and demand for fuels in the UK and abroad increases, the market for wood fuels has grown. Until recently, cheaper imports have reduced the demand for production of woodfuels in the UK, but the new grant will help to provide an incentive to businesses to use British forests to produce the commodity.
Investing in forestry for the production of woodfuel, in the form of pellets, sawdust, chips or sheets carries several environmental benefits. As well as reducing the UK's dependence on fossil fuels and limiting the amount of carbon released into the atmosphere, it provides habitats for wildlife and protects land from development.
The Forestry Commission said that the new grant will help to encourage productivity from what is currently an underutilized woodland asset.
The AAA said the grant will provide a welcome boost to the UK forestry investment market as production of wood fuel from UK forests is likely to boom as a result of the extra funding. Infrastructure such as access roads through forests to aid harvest, will also improve in light of the grant, claimed the AAA.
A spokesperson for the organization, Michael Edwards, said, "Anyone investing in forestry in the UK will be pleased to hear that a grant has been put in place as part of the government's Renewable Heat Incentive. The grant will also help to establish a flourishing wood fuel production industry in the UK."
Currently, much of the wood fuel used in the UK is imported from countries like Brazil where major investment is directed through firms like Greenwood Management and Global Forestry Investments.