Friday, 3 December 2010

Coal's Two-Year High Prompts U.K. Utilities to Burn Wood: Energy Markets

The highest-priced coal in two years is making wood pellets a viable
alternative as a fuel for U.K. power producers, heralding a doubling of
electricity generation from biomass in the next three years. Using coal to make a megawatt hour of electricity in the U.K. costs 40.25
euros ($53), compared with 39.35 euros for wood, according to Bloomberg New
Energy Finance. Prices have been "approximately the same" since May, it
said. Pledges by Prime Minister David Cameron's government to step up renewable
energy use are stoking investment in U.K. projects to get electricity from
biomass such as tree and vegetable matter just as coal prices surge amid
rising demand from China. Utilities plan to more than double biomass
capacity in Britain to 5,800 megawatts by 2014, enough to supply almost 6
million homes, New Energy Finance said.

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