What are the economic benefits?

The capital cost of installing a wood fuel heating system is more expensive than an equivalent gas or oil fired system and therefore it is through the running cost savings and pay-back period where the economic case is made.

Buildings or groups of buildings which have a higher heat use will therefore produce the best economic case. Similarly those using the most expensive fossil fuels for heating (for example heating oil or electricity) will see improved pay back.

With an ‘ESCO’ arrangement (such as available through HWE’s ‘Bio-Heat Supply’ plan, you could potentially opt for a capital cost free financed solution. In this case the ESCO own the wood heating system and the cost of the fuel, maintenance and management, and the capital cost are charged through the plan. This provides the advantage of minimising risk, not requiring capital investment and outsourcing the entire operation and fuel supply of the system to professionals.
 

Is there grant funding or government assistance available with the capital cost? What impact will the proposed ‘Renewable Heat Incentive’ have on the economics?

At the time of writing the government is consulting on the proposed introduction of the ‘Renewable Heat incentive’. It is proposed that the current system of capital grants is abolished and replaced by a revenue payment based upon the kWh heat output of the system. For example, for systems below 500kW, this is proposed to be 6.5 pence per kWh. Evidently this revenue payment will have a major effect on the economics of biomass systems.

The ‘RHI’ is due to begin in April 2011, though will apply to systems installed after July 2009. It is likely that the RHI will have a significant positive impact on the economics of your project as it is calculated to offer a 12% Return on Investment.  Please contact us if you would like to discuss this further as we have been actively involved in the consultation process including presenting the industry and customer perspective at Government organised events.

In the meantime, enhanced tax relief is available on biomass systems through the ‘ECA’ scheme:
www.eca.gov.uk

Interest free loans are available through the Carbon Trust and we are a recognised Carbon Trust Partner.
 

Sustainability.

Using sustainable timber stocks grown in this country to produce fuel provides a sustainable heating source, and reduces our dependency on unsecured fossil fuel supplies. Similarly reducing your buildings dependency on fluctuating cost fossil fuels will mean you can accurately budget for energy costs.

Carbon Savings.

Approximately 80% of a building’s carbon emissions are from heating and hot water production. Displacing fossil fuels with wood fuel will therefore reduce your carbon emissions dramatically. For example, the average hotel, displacing 30,000 litres of heating oil will save 80 tonnes of CO2 every year.

How does a wood heating system work? Which system should I choose?

The wood heating system consists of the boiler, fuel feed system (for example ‘spring agitator’ system) and boiler control panel. The wood heating system functions in a similar manner to an oil or gas boiler in that the fuel is fed in particle form (either chip or pellet) on demand into the burner where it combusts to produce heat. The control panel ensures efficient production of heat on demand (approximately 90% efficiency).

Fuel storage can either be constructed on site or provide as a prefabricated system. The boiler room will contain associated pipe-work and heating equipment.

There are numerous manufacturers of wood heating system on the market. HWE are not tied to any single supplier and therefore can offer the ‘best fit’ solution for the client.
 

What other equipment or hardware will I need?

Subject to the bespoke design and specification provided by HWE, the installation of the wood heating system may require additional equipment such as pumps, control panels, heat meter, heat exchangers, accumulator tanks and underground pipe-work.

The installation may also required associated builders and civils works such as trenching for pipe-work and construction.

HWE’s engineering team will partner you to provide a ‘best fit’ design and can provide a fully turn-key installation undertaking and managing all aspects of the project.
 

Where should I locate my wood heating system?

For new build projects, the wood chip heating system can be located in the main building plant room with the fuel store located adjacent to this - either above or below ground.

For existing buildings, due to the size of the system and the amount of fuel storage and access required, it is unlikely that it will be possible to locate the wood heating system within the existing building or boiler room.

Therefore, the two main options are either to install the system within an existing or new build nearby shed, or to locate a complete ‘packaged system’ (off site constructed complete unit with boiler room and fuel store) nearby. HWE can provide solutions for both of these options.

Pre-insulated underground heating mains can be used to connect to the building(s) requiring heating.
 

Can I easily integrate the new wood heating system to my original heating system? Can I heat multiple buildings from the one wood heating system?

Yes, if there is an existing ‘wet’ heating system, the wood heating circuit can connect into this. The existing boiler plant can either be removed or retained in place for standby/top up purposes.

‘District heating’, whereby multiple buildings are heated by a centrally located wood heating plant, is an effective method of providing heating to a site with a number of buildings. Pre-insulated heating pipe is lain in underground trenches to distribute heat from the central boiler room, with the district heating pipe-work interfacing to each building individually.

HWE provide a turn-key service for system design and installation and district heating including all associated mechanical and electrical and civils/building works.
 

Where do I source the fuel? How much maintenance is needed?

If you are intending to manage the system yourself it is possible to source pellet fuel from one of the factory producers. For wood chip fuel, due to the higher bulk of the fuel, this is sourced from more localised, often smaller scale producers.

In addition to fuel supply management, wood heating systems require ongoing ‘routine maintenance’ (such as ash removal and visual checks) taking approximately 15 minutes per week, and an annual (potentially more frequent for larger systems) service. In general terms there is more ongoing management and maintenance required for wood heating systems than for fossil fuel systems.

HWE provide a comprehensive ongoing after care service through our service and support contract. This includes maintenance, call out and remote support services to ensure many years of successful operation for your wood heating system.

What if I want the benefits of wood heating but don’t want to have to manage the system?

HWE can offer a full ‘Bio-Heat Supply Service’, whereby we undertake the complete management of the system including fuel supply and provide clients with metered heat.  This can also extend to a finance option on the biomass heating system for a capital cost free installation.
 

What do I do next?

The next stage is to contact HWE to begin the planning of your wood heating system!

Why should I choose HWE?

As Scotland’s leading and longest established biomass heating specialists, our aim will be to work with you as your biomass heating partner to deliver a project that surpasses your expectations and which will allow you to enjoy the benefits of wood fuel for years to come. There are a number of key reasons as to why we will be a good choice for you:

1. We will work with you to develop a practical solution which will meet your needs.
2. We have a range of equipment & solutions which will provide you with choice and cost alternatives and provide the ‘best fit’ solution for you.
3. We can provide a turn-key solution including full design and build. We can also work with your design and project team.
4. We have the track record and experience of delivering a large number of successful wood heating solutions.
5. We are well resourced and professional company with truly national coverage. This includes a comprehensive team of in-house designers, engineers, project managers and installers. We also have a number of key trusted partners in various areas across Scotland.
6. We provide an unrivalled level of extremely responsive after care service.
7. We have all the necessary accreditations to allow you to capitalise on government incentives and other benefits.