Availability and Use of Wood-based Fuels in Finland in 2020

Author

Kalle Kärhä, Juha Elo, Perttu Lahtinen, Tapio Räsänen and Heikki Pajuoja

Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics, 19-22, issue 43

Abstract: In the context of the Government’s Climate and Energy Strategy, it is estimated that the primary use of wood-based fuels in Finland will be about 100 TWh by the year 2020. The overall target set for forest chips is 25 TWh. The objective of the research carried out by Metsäteho Oy and Pöyry Energy Oy was to produce as realistic as possible a total analysis of the possibilities of increasing the use of solid wood-based fuels, and especially forest chips, in Finland by 2020. The study showed that the growth objective set in the Government’s Climate and Energy Strategy can be attained through the supply and consumption of wood-based fuels. The emission trade had a strong influence on the competitiveness of wood-based fuels and the use of such fuels in energy plants. Increasing the proportion of wood-based fuels is very difficult at the current pricing level of emission rights (about 15 €/t CO2). Considering the huge resources required by the forest chip production system and the current low competitiveness of forest chips, it is estimated that the use of forest chips in Finland will reach the level of 20 TWh at the earliest by the year 2020.

Keywords: Energy wood; Fuelwood; Forest chips; Pontentials; Finland.; Agribusiness; Environmental Economics and Policy; Land Economics/Use (search for similar items in EconPapers)
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