Biomass heating

Biomass heating
© tchara, image #134110652, 2017, source:
All sectors
Investment cost:
High cost
Payback time:
2.5 Year(s)
Cost savings:
117720€ / Annual: € 117 720 (£ 108 000)
Resource type:
Resource saving:
Annual: reduced utility cost, reduced carbon generation; replacing existing electric consumption; 778 000 kg CO2 equivalent saved
Investment cost:
288850€ / €288 850 (£ 265 000) per project; rhe scale of the project is based on heating demand; cost-effectiveness highly dependent on UK Renewable Heat Incentive (RHI) qualification; regular boiler and feeding mechanism checks required
Assumptions taken in the presentation of the above performance indicators:

Installation of biomass boiler to replace existing gas boilers; most applicable when replacing oil boiler and a gas connection is not readily available; installation of a 600 kW biomass boiler to replace an existing oil fuelled boiler, assumed qualification with RHI and wood chip storage area of 6 m3

Biomass heating is a proven technology which most commonly uses virgin wood, certain energy crops, industrial wood residues and certain agricultural residues to produce heat. Biomass is considered a low-carbon technology if the feed material is derived from sustainable sources. Significant carbon and operational cost savings, as well as reduced fuel price volatility, are achieved with the use of biomass heating. Using certain biomass resources as fuels can also help divert by-products from landfilling and reduce costs associated with waste management.

The major drivers for the implementation of biomass heating are:

  • Significant carbon savings: a biomass heating system can help to reduce an organisation's carbon footprint significantly
  • Operational cost savings: biomass fuels are typically cheaper than fossil fuels
  • Reduced fuel price volatility: especially related to the use of fossil fuels, using biomass can help reduce concerns of supply and price instability
  • Wider sustainable development benefits: a diverse and local supply chain can help to create employment, stimulate economic activity and diversification, and encourage sustainable woodland management; a stronger local economy is also less exposed to global price volatility
  • Resources diverted from landfill: prevents some waste types from being sent to landfill by using them as biomass fuel
  • Reduced exposure to climate change-related legislation: national legislation may favour biomass heating, which is an opportunity for further cost savings
  • Improved energy performance ratings for buildings: further energy efficiency savings and improved rating by considering biomass heating

There may be additional legal and practical advantages to biomass heating. Consult relevant experts and organisations in your region/country.


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