Dried Wood Chip for Biomass boilers

DragonWood

New Member
I am doing some market research into pricing as we are looking to set up a business to dry and sell virgin wood chip and from what I have seen on Ebay and alike, prices are around £100 or higher / tonne (mc of around 20%)

Looking into price setting, I wonder whether farmers pay that price for fuel in their biomass boilers?
I would be grateful if you could share some prices you pay, please.

I am currently calculating at getting below £90/tonne mark, incl delivery, excl VAT. Delivery per wagonload
Some feedback greatly appreciated. Thanks.
 
Brace yourself for some pee taking!

Prices fluctuate hugely from area to area.

Every man and his dog is doing this now, you have to deal with BSL and all that goes with it.

Burning straw and hopefully shredded timber here, both costing us under half a penny / kwh
 

DragonWood

New Member
Greedy, not a bad price. I can beat that but only by a few pounds /t and big volume. Not sure what your delivery costs are, but these can add between £8 and £16/t depending on how far you live.
 

f0ster

Member
the rhi are looking at the practice of drying wood chip and they will most likely be stopping it from receiving any tariff,
 

f0ster

Member
it is in the gov latest consultation paper they have released, the tariff was not meant for this type of use and they have indicated they are looking at it and most likely they will stop it, it will only be for new entrants in to the system. they would not look at it retrospectively. the time scale for them to act on this, if at all, is difficult to know, it might take them the rest of the year but then maby not.
 

renewablejohn

Member
Location
lancs
My thoughts exactly ^^^

If it's BSL timber and there is a paper trailer it's legit ATM.

can they change it retrospectively? If so many are screwed big time?

@renewablejohn any thoughts?

They can do just as they please retrospectivley as they just make new rules for you to jump through making it uneconomic. Been there got the T-shirt. Watch the budget this week I think there will be a big announcement re RHI.
 
There will be 100's in trouble then who built a business exclusively for RHI income from drying.

Still not sure where all this timber is coming from to feed these chip boilers though? Surely the UK must be running out?
 

Punch

Member
Location
Warwickshire
Another local to me rang end of last week. Just commissioning a Woodchip drying plant heated off RHI. They still believe they'll be ok. That should put some more local competition on dried chip prices. Plus they are close enough for us to collect.
 

farmerfred86

Member
BASIS
Location
Suffolk
There will be 100's in trouble then who built a business exclusively for RHI income from drying.

Still not sure where all this timber is coming from to feed these chip boilers though? Surely the UK must be running out?

Sadly a lot is already being imported. A boat arrived in Ipswich recently full of wood pellets and I understand woodchip is imported from the U.S.
 

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