Modern technology means that wood, the oldest of fuels, can now be burnt efficiently, cleanly and with the minimum of fuss.

If you are about to invest in a replacement heating system for your building, or are involved in developing a new building project, it pays to take the long-term view. By considering wood fuel as an option you will be helping the environment, helping the local economy and saving money on the ‘whole life’ heating costs for your building.

Wood is much less expensive than fossil fuels, per unit of heat produced – at current prices, natural gas is three times the cost of wood, propane is five times the cost of wood, and electricity is seven times the cost of wood. The capital costs of installing wood fuel boilers currently tends to be higher than a gas equivalent, but when assessing a project on a “whole life cost” basis, biomass (including wood burning) options tend to work out cheaper than hydro-carbon based fuels like gas. The cheaper cost of wood fuel over time, pays back the initial higher outlay for the capital equipment. Annual running costs such as servicing are similar to that of a gas installation.

What fuel will be used when the world runs out of oil – which is expected to happen within 50 years? The world is running out of fossil fuels. In a few years, the world’s inhabitants will have consumed one-half of the known fossil fuel reserves. Once this happens, fuel prices will skyrocket as fears of “running out” will become more of a reality. Within 10 years, experts project the world oil demand will exceed production capacity by 20 million barrels per day. This will result in astronomical fuel prices to level the supply/demand curve. Homeowners will be forced to find and pursue alternative heating methods.

The harvesting and burning of wood is an important economic factor in a community. It reduces a community’s dependence on energy companies and it supports the local economy. There is no billion dollar wood fuel utility that will profit from wood burning or multinational corporations involved in the wood heat business. Most businesses that supply furnaces are small manufacturers and retailers. Local workers who chop firewood and chimney sweeps who service wood-heating systems get the benefit of local dollars.
Using wood from well managed, local woodlands provides a renewable source of fuel with reduced transport costs. It gives land owners an incentive to manage their woodlands productively and for the benefit of wildlife. Well managed woodlands can support a wider range of flora and fauna than under-managed woodlands. Neglected woodlands will be brought under proper management as the demand for local timber increases. Well-managed woods produce timber which can be used by local industries, and lower-grade wood can be processed for fuel. Without this market there is less incentive to manage local woodlands or establish new woodlands.

In summary, wood fuel:
• is a lot cheaper fuel than many fossil fuels and can compete on price with gas because of the rising costs of fossil fuels on the world market and taxation such as Climate Change Levy (CCL) and Emission Trading Schemes (ETS)
• when ‘whole life’ costs are taken into account, biomass works out as the most economic option
• is the most cost effect renewable option at reducing carbon emissions
• where wood fuel comes from local sources it promotes a ‘closed economic cycle’ whereby the financial benefits are retained within an area or region
• avoids the burden of landfill charges for ‘clean’ reusable wood/timber residues
• provides a market for low value timber which would otherwise have no use or economic value

This article is based on content from http://www.worldwise.com/whywoodisbes.html and http://www.wood-fuel.org.uk/why_economic.htm