Wood chips are already used as fuel in Northumberland

The Environmental Industries Federation (EIF) says the region could have as much as 750,000 tonnes of waste wood available for use as fuel.

The EIF claims there is about 130,000 tonnes of waste wood from the region's forestry and sawmills alone.

It says that would be enough to power a major biomass power station.

The study follows recently-announced plans for a remote Northumberland village to become the first in England to take its power from wood chips.

The village of Kielder has developed a wood-fuelled district heating scheme, using chips from Kielder Forest.

The EIF study also suggests that the 87,000 tonnes of waste wood currently destined for landfill could be used as a biomass fuel source, possibly providing a new line of business to recycling firms.

Power source

Joanne Bennison, sector development manager at the EIF said: "We commissioned the report to help clarify the legislation governing waste wood use for both suppliers, who need to ensure wood isn't classified as dirty and users who need to know what waste wood to use in normal biomass boilers."

Frances Rowe, rural and environmental manger at regional development agency One NorthEast added: "There is huge potential for us to utilise waste wood as a power source.

"Pilot projects such as the one we recently supported in Kielder have shown there is the technology, resources and will to look at the alternatives"

A £650,000 system at Kielder already supplies heat and hot water to a school, youth hostel, six three-bedroom homes and a visitor centre.

The spruce tree chips produce the same power as fossil fuels, but without associated emissions.