A landowner’s guide to managing woodlands for wood fuelFor people who are considering bringing their woodlands into management

In recent times, wood has been a less-favourable way to heat homes. When compared to gas and electric systems, it has been seen as cumbersome, labour-intensive, inefficient and inconsistent. This has changed. With the rising prices of gas, oil and electricity, and the improved technology of appliances, wood fuel is increasingly attractive to the consumer. Firewood was seen as a by-product of woodland

management and was an add-on, rather than the

crop. However, with the innovations in wood fuel

technology, the market is widening and more good

quality wood fuel is needed to supply the demand.

Biomass is now a crop in itself with a good and

growing market.

We want the customer to consistently be able

to buy good quality wood fuel in the form that they

wish and at a price that they can afford. By making

the wood fuel economy work for both provider

and consumer, owning a woodland can now be a

profitable economic venture, because of:

Price rises and unpredictable supply of gas

and oil.

Improvement in the efficiency of wood

burning stoves.

Consumers demanding environmentally

sustainable fuel supplies.

“Woodfuel Wales is the organisation that

promotes the efficient supply and use of

wood fuel as a clean, low carbon, economic

and sustainable energy source in Wales and

the Marches. Our mission is to help all those

in the sector capitalise on the potential of

the wood fuel market by delivering a quality,

sustainable, good-value product in the form of

logs, chips, briquettes and pellets.

“Wales risks failing to meet its 2020 carbon

reduction targets, and off-setting fossil fuels

with wood fuel has an important role to play in

meeting those obligations. Reliable quality is a

critical factor and we are working with all our

members to improve the quality of the products

and services throughout the supply chain.

“Owners and managers of woodland in Wales

are in an enviable position. Demand for wood

fuel is increasing, with rising fossil fuel prices

pushing householders to turn to wood to heat

their homes. Businesses and institutions are

also taking advantage of the UK government’s

Renewable Heat Incentive (RHI) scheme to install

wood burning technology to heat their premises.

14% of Wales is

woodland, of which

60,000 hectares

of broadleaved

woodland is

believed to be unmanaged thereby

offering the potential of a substantial timber

resource suitable for the wood fuel market. We

are urging woodland owners to act now and reap

the benefits.”

Nic Snell, Chair of Woodfuel Wales

Government policies aimed at protecting

the environment and encouraging the use

of biomass to generate heat becoming more

important.

Unlike fossil fuels, wood fuel is renewable,

provided woods are managed sustainably.

Woodland opportunities in Wales

Approximately 70% of UK woodland is unmanaged. Wales has 180,000 hectares of private woodland, of which 60,000 hectares are believed to be unmanaged broadleaves. Historically, this is due to lack of demand for lower grade timber, the small size of woodlands, difficult access and lack of financial incentives. Today is a different story: current retail prices for firewood makes modern management of neglected woodlands financially viable for the first time.

Woodfuel Wales is anticipating further increases

in demand. Recent research (Woodfuel Wales

2011) revealed that raw material prices

increased by over 30% for hardwood over the

2010-2011 season, and prices are predicted to

remain strong.

www.woodfuelwales.org.uk A landowner’s guide to managing woodlands for wood fuel

Why start producing wood fuel from your woodland? What’s in it for you?

Welcome from Nic Snell

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Join Woodfuel Wales

Become a member today by simply calling

0845 456 0342 and receive:

Free listing on the website that the public

use to find their wood fuel supplier.

Regular newsletters with the latest news

and advice from the sector.

Opportunity to share views and best

practice with the industry.

Access to the HETAS QAF quality

certification scheme at special rates.

Advice on funding and legislation.

Member events.

Visit www.woodfuelwales.org.uk for

more information.

Did you know that as long as timber is simply snedded (branches removed) and cut to length or sold

standing, any income or profit generated from sales is exempt from income tax? Adding further value

to the timber by processing into firewood etc. makes it a taxable income. For more details and other

woodland tax benefits contact HMRC.

This guide shows woodland owners how to start

managing their woodlands and generate profit,

including tax-free returns. In addition, there are

wider benefits to managing woodland for wood

fuel: supporting biodiversity, rural job creation,

reducing carbon emissions and moving towards

a greener society. This guide will provide an

excellent starting point to help develop your

woodland business.

The information contained in this Guide is accurate at the time of publication (May 2012). Woodfuel Wales takes no responsibility for the content of third party websites cited in this Guide.

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As a woodland owner or manager, the good news about starting to produce raw material for wood fuel is that it is possible to choose the level which is right for your business.

At one end of the scale, contractors and

professionals can be bought in to manage,

harvest and transport the timber, whilst at the

other these activities can be kept in-house. The

level of involvement in the supply chain will

depend upon available skills, machinery, space

and opportunities in local markets.

Before getting started, it is necessary to match

expectations against the available resources and

to consider the following: What are the access

constraints to and within the woodland? What

infrastructure would be needed to get the best

from the resource? For example, will new access

routes be needed for heavy machinery or lorries?

Security might need to be considered, depending

on the location of the site. Grants are available

for improving infrastructure (see “Grants” on

page 9).

www.woodfuelwales.org.uk

Woodland management - getting started...

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A landowner’s guide to managing woodlands for wood fuel

Wood fuel reduces CO2

Wood fuel is carbon neutral. Trees use sunlight

and carbon dioxide to make sugars that are

then converted to wood. Once harvested and

dried, wood can be burnt efficiently to create

heat energy. As it burns, wood produces

carbon dioxide (CO2). But this released CO2

will be re-absorbed in the same amounts by

new trees planted or coppiced. This means

that no extra CO2 is put into the atmosphere -

which is why wood fuel is regarded as ‘carbon

neutral’.

Wood is a truly renewable energy resource, so

long as woodlands are managed in a

sustainable way, the fuel is burnt at a low

moisture content to minimise emissions, and

it is used close to where it was felled to

reduce road miles.

Wood for heating can reduce carbon emissions

by up to 95% compared to fossil-fuelled

heating.

Growing a cubic metre of wood can

remove 1 tonne of carbon dioxide from the

atmosphere.

Wood produces little smoke when burned at

low moisture content (<25% wet basis).

Managed woodlands protect biodiversity and landscape

The protection and sustainable use of natural

resources is becoming increasingly important.

Management of woodlands and development

of new woodlands has huge benefits for

wildlife conservation and can help to lessen

the impacts of climate change by reducing

flooding whilst protecting soils.

Active and considerate management can

provide a mixed pattern of woodland habitats

encouraging more plants, butterflies, moths,

birds and mammals.

Bringing woodlands into management can not

only make money, it also protects habitats

and the landscape for the next generation.

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www.woodfuelwales.org.uk

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A landowner’s guide to managing woodlands for wood fuel

The management techniques, machinery and skills needed to maximise output from woodland depends on factors such as the age and species mix of the woodland, topography and the history of management on the site. Often in Wales, topography is the biggest factor determining how woodlands are managed, the resources needed to develop them commercially, and their future management.

Professional woodland managers can advise on

how to take woodland forward commercially

and also on any grant aid the owner may be

eligible to apply for. However, in general:

The majority of unmanaged woodlands

in Wales and the wildlife they support

will benefit from thinning. This will

maintain a continuous canopy cover,

allow enough light for ground flora to

develop and provide a product for the

woodland owner to take to market.

Broadleaf woodlands being brought back

into management can potentially yield

between 60-80 tonnes per hectare when

thinned.

Mechanised harvesters are a good way to

reduce costs and are commonly used in

broadleaved woodlands where sufficient

volume, slope and tree form make it a

good option. Winch teams can manage

a wider range of conditions, however,

costs can be higher.

Once harvested, timber is commonly

cross cut to 2.5m lengths, stacked and

sold at roadside or delivered by haulier

to processing businesses. Specialised

forestry haulage lorries can hold up to 25

tonnes of green timber.

Timber is more commonly sold as ‘green’

which means it has not been seasoned.

The drying process is managed by the

wood fuel processor to reach accepted

quality standards.

Alternatively, woodland owners can

season timber in the round before sale

to wood fuel processors. This could

add a premium to the product but may

cause cash flow difficulties if harvesting

contractors need paying.

Further premium could be added by

splitting it, seasoning it then selling it to

the public as firewood.

Oak can take considerably longer

than other wood species to season, so

processors may not want to buy large

quantities of green oak for cash flow

reasons. However, following increasing

demand, many processors are now

extending their storage facilities or using

forced drying methods.

The market for wood fuel involves not

only log producers but also wood chip,

pellet and briquette manufacturers.

If woodland owners want to process and

market wood fuel products themselves,

membership of Woodfuel Wales will help

by offering advice and information about

quality, methods, market developments

and funding: www.woodfuelwales.org.uk

The basic management standard for woodland is the latest UK Forestry Standard. Visit www.forestry.gov.uk for further information.

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www.woodfuelwales.org.uk

The neglected woodland, originally part of a

large estate, was planted with mixed conifers,

ash and oak.

The owner was visited by a local advisory group

and woodland manager to do an initial survey

and provide guidance on the next steps.

A grant was secured to re-stock 1.2 hectares and

build a stone loading pad. The thinning operation

yielded 740 tonnes of timber, of which 460 were

premium ash firewood.

The 1.8 hectares of oak yielded some quality

trees and the area was carefully thinned to

provide 100 tonnes for the local sawmill.

The net income from the operation was £22,000

after all costs. The healthy return gave the

owner the confidence to invest some money back

into the wood. An old pond was restored with a

new track around it.

The wood now looks wonderful and the owner

can enjoy the improvements made, knowing that

the environment is enhanced along with the long

term profitability of the woodland.

Case study

Starchfield Covert in Herefordshire – 6 hectares

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A landowner’s guide to managing woodlands for wood fuel

It is crucial for the wood fuel industry - growers, contractors and processors - that a clean and dry product is consistently produced. This will build consumer confidence and ensure a future for the sector.

Woodfuel Wales has been working with partners

to implement quality standards across the supply

chain. We recommend joining Woodfuel Wales

if you are considering developing a wood fuel

processing business from your woodland harvest.

We can advise and guide your enterprise towards

achieving the government recognised Quality

Assured Fuel (QAF) standard.

The Woodfuel WalesQuality Assurance ManualThe manual outlines the commitment HETAS

shares with Woodfuel Wales for the production

of high quality wood fuel and sets out a pathway

towards becoming a HETAS certified quality

wood fuel producer under the QAF scheme.

The scheme covers all wood fuels, firewood

logs, wood chips, pellets and briquettes. Visit

www.hetas.co.uk for further information.

The question of quality

There is financial support available for woodland

owners, including:

GLASTIR Woodland Management Scheme,

available through the Welsh Government

Department of Rural Affairs, offers grants

to manage existing woodlands that are 0.5

hectares or more in a single block. They are

targeted for managing soils, water quality,

flood risk, conserving and enhancing wildlife

and permissive access. These objectives

will be delivered through grants for work

such as thinning, restocking, infrastructure

(to bring previously inaccessible woodlands

into management), boundary work and

pest control. GLASTIR also offers Woodland

Creation grants to landowners with eligible

land over 0.25 hectares. For more information

visit www.forestry.gov.uk or send an email to

rural-affairs@wales.gsi.gov.uk

Local authorities may offer grants for a variety

of business development work - contact

the rural development department of your

local council. For example Conwy Cynhaliol

(Sustainable Conwy, 2011-2013) is a local

scheme offering grant support for land owners

and businesses operating in the timber and

forestry sector to develop new ways of working

and to produce new products or services.

For further information visit www.ruralconwy. org.uk/projects/resource-support/timber/ Wood Energy Business Scheme (WEBS2) is

administered by Forestry Commission Wales

and aims to provide capital grant support to

micro-businesses, SMEs and social enterprises

to develop the sustainable and renewable

wood heat market across Wales. Funding is

available for wood fuel processing and supply

businesses to enable the development of high

quality supply chains. To find out more visit

www.forestry.gov.uk/forestry/INFD-8JRRCT

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www.woodfuelwales.org.uk A landowner’s guide to managing woodlands for wood fuel

Grants - help is at hand

The Woodland Trust

www.woodland-trust.org.uk BEC – www.biomassenergycentre.org.uk Carbon Trust – www.carbontrust.co.uk HETAS – www.hetas.co.uk Forestry Commission Wales

www.forestry.gov.uk

Woodfuel Wales’ partnersWoodfuel Wales is a broad membership

organisation that works in partnership with a

wide range of organisations within the sector.

Some useful links are listed here:

Small Woods Association

www.smallwoods.org.uk Forestry Contracting Association

www.fcauk.com

The production of wood fuel can only be truly

sustainable if local woodlands are the source

of wood for local processors. Using locally

grown timber for fuel keeps the money used

for energy in the local economy and reduces

transport costs. It also keeps fuel as carbon

neutral as possible because excess energy

is not used in transportation. Developing a

localised sustainable fuel industry is good for

the future of rural economies.

More than 10,000 people are currently

employed in the timber industry in Wales.

The increasing demand for wood fuel could

mean that more people living in rural areas

are given new opportunities for extra income.

A local approach

It is crucial that anyone thinking about bringing woodland into management also considers what licenses and permissions are needed before beginning work. Farmers will need to consider how woodland management may affect cross-compliance issues, particularly where woodland watercourses may be influenced by management work. Public rights of way are protected by law; you may need to seek a temporary closure order before you work near one. The timing and intensity of management work within woods should be planned to have as low an impact on wildlife and landscape as possible, and to ensure the safety of others working and enjoying the countryside.

The following links provide examples of

important issues to consider, but do not form a

comprehensive list. Owners should seek further

advice.

Woodlands are protected under the Forestry

Act 1986 which requires a licence for felling

trees. It does not apply to small quantities

(5m3 felled every 3 months of which 2m3

can be sold). Licences are available

from the Forestry Commission, but for

regular woodland management it may be

much simpler and beneficial to apply to a

woodland grant scheme for a comprehensive

management plan which will include licences

to thin and fell. To find out more visit

www.forestry.gov.uk/forestry/INFD-6DFK86

European Protected Species of particular

importance when managing woodlands are

bats, otters and dormice. For further

information visit www.ccw.gov.uk Tree Preservation Orders (TPOs), issued

by local council planning departments.

For futher information on the ordrers visit

www.communities.gov.uk/publications/ planningandbuilding/tposguide

Licenses and permissions

Woodfuel Wales is an initiative of the Welsh

Timber Forum that represents and promotes the

wood fuel industry in Wales and The Marches.

A Welsh version of this Guide is available to

download on the Woodfuel Wales website.

Woodfuel Wales,

Welsh Timber Forum Ltd,

Unit 6, Dyfi Eco Park,

Machynlleth, Powys SY20 8AX

Tel: 0845 456 0342

Fax: 01654 700 050

Email: info@woodfuelwales.org.uk

Web: www.woodfuelwales.org.uk

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Working with HETASfor quality supply