More than 250 tonnes of wood chips will be used every year

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

From Tuesday, the �650,000 system will supply 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.

The scheme, which organisers say is the first of its kind in the country, is being spearheaded by Tynedale Council, regional development agency One NorthEast and the Forestry Commission.

We replant with new trees the areas that are felled so there is a never ending sustainable supply of wood Graham Gill, Forestry Commission

The Commission is contracted to supply 250 tonnes of wood chip a year.

The system will run from a boiler house in the village and organisers hope similar schemes will be established across Northumberland.

One NorthEast chairman, Margaret Fay, said: "The North East's ambition to become the biomass capital of Britain is starting to be realised with schemes such as this coming to fruition.

"The partners involved in the Kielder project are also part of a wider regional biomass group that is hoping to achieve a target of 50MW of power produced by biomass by the end of the decade.

"That's enough to provide hot water for all the homes in Northumberland.

"This whole area of green energy has huge potential for new employment, new investment and protecting the environment in the North East and this project shows the region is keen to harness this."

Graham Gill, of the Forestry Commission, added: "Wood fuel is carbon neutral and trees absorb as much carbon when they are growing as they release when they are burned so there is no net emission of carbon from using wood fuel.

"We replant with new trees the areas that are felled so that there is a never ending sustainable supply of wood from the forest."