STEPS are being taken to speed up the development of the North-East's wood fuel industry.

About 100 potential woodfuel consumers and suppliers supported a successful bid by North-East woodland initiative Northwoods for a grant to develop its work.

The £68,000 grant, from the Department for Food and Rural Affairs, has allowed the formation of North-East Wood Fuels (NEWFuels), the first woodfuel producer group in the region. It brings together farmers, woodland owners and foresters to help them supply woodfuel to markets.

Northwoods said it was the first step in developing an industry that can offer savings on energy bills for the consumer, because producing heat from woodfuel can be cheaper than fossil fuels.

The organisation said a successful wood fuel industry would also create rural jobs and lead to better woodland management, as landowners and foresters found markets for the product of unmanaged woodlands.

There are also environmental benefits, because woodfuel is a carbon neutral fuel - the carbon stored by a growing tree is released once the tree is used as fuel. New trees are planted so the cycle continues.

Neil Harrison, director of Northwoods, said the purpose of the scheme was to help farmers, foresters and businesses develop the supply chain required to harvest, store, process and supply energy crops and woodfuel to the commercial and domestic markets.

Mr Harrison said: "We are 25 years behind Europe in the development of the woodfuel industry, but there are phenomenal benefits if we can develop it to its potential.

"Farmers and other landowners often do not realise they have woodland which can be utilised, so a lot of woodland is being under-managed at the moment.

"This scheme can help them to find new markets for these products by matching growers with consumers."

For more information, go to www.northwoods.org.uk

Published: 29/11/2005