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Coal’s Surge Coaxes U.K. Utilities to Burn Wood: Energy Markets

The highest-priced coal in two years is making wood pellets a viable fuel alternative 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.