Bio-energy may become very important for forestry, but with today's prices the quantity we can take out is limited, says counsellor Björn Hovard Evjen in the Norwegian Forest Owners' Association.
Bio-energy may become a new business branch increasing value added in Norwegian forests. However, external factors constitute a problem.
The main challenge is how to create profitable business. Evjen points out that Norway applies considerably lower charges on electricity and oil than for example Sweden. The prices of oil and electricity determine the price that forestry can charge for raw materials for energy production. With today's price level it is unprofitable to produce pellets from raw timber. The opportunities of supplying woodchips for direct combustion are somewhat better.
But also in this sector we are behind Sweden, whose district heating network is well developed. In Norway we have no water based heating network and building a new one underground will be too expensive, says Evjen. However, he points out that the Forest Owners' Association closely follows developments and it will be well prepared to enter the market as soon as opportunities emerge.
If the Kyoto Agreement it to have any real meaning, prices of oil and electricity must be pushed upwards. We can observe that taxes and charges are applied much more extensively in other countries, says Evjen.
The Norwegian Bio-energy Association (Nobio) expects bio-energy to be the next big growth sector in Norway and that investments may create 3 000 - 5 000 new jobs before 2015.
A thumb rule is that 300 - 500 new permanent jobs are created for each terawatt hour (TWh). If we can manage to increase production by ten TWh, we speak of 3 000 - 5 000 jobs. There are good opportunities, not least for forestry, says Nobio's managing director Silje Schei Tveitdal.