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Video: Biomass: comparing the costs

According to the Department for Business, Enterprise and Regulatory Reforms 'Energy In Brief' Report, in 2007, biomass accounted for 82% of renewable energy sources used in the UK. Nevertheless, the Carbon Trust recently described biomass as an untapped resource with a significant role to play in helping the UK to meet a range of renewable energy and greenhouse gas (GHG) reduction targets. The organic fuel required for biomass power plants can be sourced from a broad range of sources, from wood through to sewage sludge, animal slurries and crops grown specifically for energy purposes.

The Carbon Trust estimates that using wood or straw can provide cost savings of 2 to 4 pence per kilowatt hour relative to use of heating oil. It also claims a biomass system generating 1,600 megawatts (that's roughly equivalent to the annual heating requirements of a typical school) could save around £50,000 a year on fuel costs relative to an existing oil-based heating system.

In this exclusive programme extract, we look at how the costs of biomass compare to conventional alternatives.