Forestry Tasmania develops biomass plant

In Tasmania, Australia, power stations which burn domestically grown timber are not eligible for renewable energy subsidies, as the carbon tax plan no longer classes local forest woodchips a renewable energy source.

While Environment Tasmania supports the decision and the leader of Tasmanian Greens Nick McKim stating: 'This is a big step forward towards valuing our forests properly', state-owned Forestry Tasmania disagrees with the move.

The company is currently developing a biomass-fired power plant in the region's Huon Valley. According to the company's assistant general manager Michael Wood, excluding native wood materials from the subsidies goes against scientific evidence. 'The current position that's been adopted is more about ideologies,' he says.

However, despite the news, Forestry Tasmania is continuing to push ahead with its biomass-based project.